The Small Business Fund (SBF): A Guide for Ugandan Small Businesses

The Small Business Fund (SBF) is a government programme administered by the Bank of Uganda to support small businesses facing financial distress. Loans are provided through participating banks, credit institutions, micro-finance deposit-taking institutions, and SACCOs supervised by the Bank of Uganda.

Read the Bank of Uganda's own overview at bou.or.ug/Govt_Schemes.

What the SBF supports

The SBF provides financing to help viable small businesses recover, stabilise operations, and grow. Loan proceeds may be used for business recovery needs, including working capital and, where appropriate, partial repayment of existing loans.

Who can apply?

Small businesses operating in Uganda — owned by individuals, groups, partnerships, or companies — may apply. Eligible businesses must demonstrate a clear capacity for recovery.

Key loan features

• Loan size: Up to UGX 500 million (no minimum loan size).

• Interest rate: Up to 10% per year, on a reducing balance.

• Loan period: Up to 4 years (minimum of 6 months).

• Grace period: Up to 1 year.

• Processing fees: Capped at 0.5%.

Repeat borrowing

Businesses may access the facility more than once, provided existing loans are fully serviced.

Block allocation for small loans

For loans of below UGX 20 million, participating financial institutions may consider alternative forms of collateral under the block allocation arrangement, to support smaller enterprises.

What is not covered

Projects eligible for financing under the Agricultural Credit Facility (ACF) are not eligible under the SBF.

How to apply

Applicants should submit their loan applications through a participating financial institution of their choice.

Get help applying for SBF

Participating banks

1. Opportunity Bank

2. Pearl Bank

3. Pride Bank

4. Finance Trust Bank

5. Housing Finance Bank

6. Centenary Bank

7. Diamond Trust Bank

8. Equity Bank

9. DFCU Bank

10. Tropical Bank

Full eligibility & requirements

Beyond the general overview above, participating institutions apply the following detailed criteria (product code SBL4, purpose: facilitating working capital for post-COVID-19 businesses):

Not sure whether your business qualifies? Get help checking your eligibility before you apply:

Check my eligibility

Eligibility criteria

1. The business must be a small business operated by individuals, groups, partnerships, or companies.

2. The business should employ between 2 and 49 people.

3. The business should be able to demonstrate capacity for recovery.

4. The business should have been in existence for at least 2 years post-COVID.

5. The business must have satisfactory CRB checks.

6. The business should provide evidence of a verified and consistent source of income to repay the loan.

Collateral requirements

• Collateral with sufficient cover as guided by the Credit Policy (broadly, security equal to or above the value of the loan).

• Personal or corporate guarantees, as approved by the credit committee.

• Loan-to-Value ratio: as per the approved collateral ratios document.

Documents required when applying

• A KYC-compliant account.

• Completed loan application form.

• Evidence of income-generating activity to repay the loan.

• Satisfactory CRB checks for individual applicants or entity directors.

• Project proposal or business plan, where applicable.

Additional requirements for companies and other registered entities

• Certificate of Incorporation.

• Memorandum and Articles of Association.

• Copy of the latest filed annual returns.

Loan terms & pricing reference

• Product name: Small Business Fund (SBF) — product code SBL4, currency UGX.

• Tenor: overdraft / short-term facility up to 6 months; term loan / longer facility up to 48 months.

• Interest calculation method: reducing balance, at the approved pricing rate.

• CRB, insurance, processing and penalty fees: as per each bank's approved pricing and bancassurance rates.

• Payment mode and grace period: as per appraised cashflows and the bank's Credit Policy.

The terms of the Small Business Fund are set by the Bank of Uganda and may change from time to time at the discretion of the bank and the management of each participating institution. Always confirm current terms with your chosen bank before applying.

Have a question about the requirements, documents, or which bank to approach? Reach the Transform Africa team and we'll help point you in the right direction:

Ask a question about SBF

Read more & reports

• Read the Bank of Uganda's overview of the SBF and other government schemes: bou.or.ug/Govt_Schemes.

• View published SBF performance reports: bou.or.ug/publications — SBF reports.

Conclusion

The Small Business Fund gives viable Ugandan small businesses an affordable, structured way to recover, stabilise, and grow — with a capped interest rate, a real grace period, and a lighter-collateral option for smaller loans. It works through the banks people already know, so the fastest way to move forward is to pick a participating institution and start the conversation.