“Lending to Micro, Small Medium Enterprises (MSMEs) has on several occasions been regarded very risky and not profitable to financial institutions because many MSMEs fail to honour their loan agreements.”

The BBBA has therefore been designed to motivate MSMEs honour their loan repayment agreements by rewarding them for on-time repayments, compliance with tax and business registration.

What is the Better Business Behaviour Award Scheme, (BBBA)?
The BBBA is a grant scheme aimed at recognizing and rewarding good behavior by Micro Small and Medium enterprises, MSMEs who receive and make on time repayment on their investment loans and are compliant with tax administration, business registration requirements, and sound governance.

What Grant support is available?
Enterprises that receive and make on-time repayments on their investment loans can receive a grant (rebate) of up to 25% of their accumulated loan interest on a six months basis.

…financing institutions that have ventured into MSME lending, experience poor portfolio performance, in part because of poor repayment discipline by the MSMEs, poor financial records kept by the MSMEs…..

What is the aim of BBBA Scheme?
• To reward on-time repayment for new investment loans as stipulated in the loan agreement and confirmed by the participating commercial banks every six months.
• Enhance the development of the private sector in Uganda and especially the MSME sector by seeking to increase their access to affordable commercial credit
• Attempt to lower the risk and cost of loans to MSMES by encouraging good repayment behaviour (Better Business Behaviour) amongst MSMEs
• Demonstrate to the financial institutions the potential for mutually profitable lending to MSMEs.   [+]