Saudi bank earmarks $2.4bn to help small businesses

Saudi Arabia’s Social Development Bank has launched new initiatives to shore up small businesses and self-employed entrepreneurs.

The bank has granted more than SAR9bn ($2.4bn) in response to the government’s decisions to back citizens, individuals and private sector establishments, notably those badly affected by the Covid-19 pandemic, Saudi Press Agency reported.

The bank has dedicated SAR8bn ($2.13bn) for promising and priority enterprises, among those micro and small size establishments.

The funds will be used to support 6,000 businesses in their financing needs. The bank has also created a portfolio for healthcare to fund about 1,000 medical establishments by raising their operational capacity.

The bank has also granted its clients a 6-month grace period to repay installments, beginning April 2020.

In March, the government had already announced SAR70bn of support for the private sector.

Read: Covid-19: Saudi says measures taken will save companies $32bn

The kingdom has further allocated an amount of SAR50bn to expedite the payment of dues to the private sector.

Read more: Saudi reveals new measures to support the private sector due to Covid-19 impact

Saudi Arabia has registered a total of 25,459 cases since the outbreak, as well as 176 deaths.