Small and medium size businesses (SMEs) continue to face serious financial difficulties, and in some cases are on the verge of collapsing or have already collapsed, says the T&T Association of Small and Medium Enterprises (TTASME).
In a statement, the association’s secretary Derick Wattley said owners are worried about operational recurring expenditures, whilst no revenue is forthcoming.
“They have lost opportunities gained. It is really a tough time. We, in this sector are in desperate need of assistance, that is slow in forthcoming or not coming at all,” he said.
He said the association recognises and fully supports that, for there to be a full economic functionality and eventual recovery, there must be an end to the current health crisis.
However, he added, but there must also be a resolute balance for the sector to regain some measures of stability, and to strengthen, adding that there is also a requirement for Government intervention in meaningful ways.
“There is need right now to start the required accelerated economic activity in overdrive to avoid increase in unemployment levels, if not monitored, will result in high increases of economic activities outside the formal economy, by making the new unemployed vulnerable to the vultures, or otherwise in self mode, they will turn into the direction of sinister ways to obtain a living for themselves, and by extension family, which will be another dilemma by itself, we are all aware what can, and will be the consequences,” Wattley said.
He said the Government must play an integral part in this period of crisis to assist in the fragility currently facing the sector.
According to Wattley, several measures must be addressed including the payment of VAT refunds which help businesses with capital for the ensuring period after lifting of the lockdown and the removal of levies and penalties on late payments.
Other issues included payment of all invoices for goods and services supplied to all ministries, State enterprises and Government institutions from SMEs and restructuring of the offered grant and other loan programmes giving ease of accessibility for funding through NEDCO with a time cap between application and approval.
Also suggested is the reclassification in the criteria for applicants within this sector for the soft loan relief facility instituted by the Government through the commercial banks.
“We welcome the increase from 75 to 100 per cent loan guarantee offered by the Government with an extension to the December 31, 2021.
“We need less stringent measures, the grading of businesses by revenue and employee levels, to make it easier to access, allowing more businesses of various types to qualify, and who currently have banking relations with their financial institution, facilitating greater participation than previously when offered,” Wattley said.
He also said the Government funding provided to the credit unions to assist in their loan programme to its members, should also be able to accommodate non-members with a requirement for their upfront share capital, and processing fees where applicable, to be part of the loan payable separately in small installments, bringing them on stream within the movement, thus becoming a member.
This accommodation, Wattley added, should be only for those in the informal sector of the economy, and who have microenterprises, giving them ease of accessibility.