6.1. Source of funding The Committee enquired about Khula's access to funding in order to increase its loan book and recapitalize itself in order to enter the retail market. Khula informed the Committee that, according to the Public Finance Management Act (No. 1 of 1999), they are unable to borrow funds as they are a Schedule 3 public entity and are dependent on financial support from government. Khula further indicated that it intends to finance some of its recapitalisation by applying for access to some of the additional funds that have been allocated for enterprise and small business development according to the 2009 Budget Speech.