Government Funding Available in RSA (COVID-19 Pandemic)
There are a number of funding schemes to financially assist SMMEs and alleviate the impact of the current lockdown. These include the Debt Relief Fund, the Business Growth/Resilience Facility, the Solidarity Fund and the UIF Subsidy.
Click on the links below to view more information on each of the funds as well as templates and contact details for the government departments.
Please contact us on learn@lifegap.org should you need assistance with:
- Business Plans
- Compiling the Correct Documents
- Submitting the Application
Summary of Programs
Debt Relief Finance Scheme:
This fund is aimed at providing relief on existing debts and repayments. To qualify, SMMEs need to demonstrate the impact or potential impact of COVID-19 on their business operations.
Click Here for more information.
Business Growth/Resilience Facility:
The Business Growth and Resilience Facility is targeted at SMMEs who locally manufacture or supply hygiene and medical products that are in demand in order to curb and manage the spread of the COVID-19 virus. These are products such as sanitisers, detergents and tissue paper. This facility will offer working capital, stock, bridging finance, order finance and equipment finance. The funding amount will be based on the funding needs of the actual business. SMMEs may apply for this funding as well through the SMME South Africa platform. Web address: https://smmesa.gov.za/
Click Here for more information.
Small Business Development:
The department of small business development offers three programs that assist small business with finance and grants.
- Blended Finance Programme
- Shared Economic Infrastructure Facility (SEIF)
- Informal and micro enterprises development programme (IMEDP)
Click Here for more information.
Rupert’s R1bn Donation:
Small and medium size enterprises (SMEs) may apply for R250 000 to R1 million in funding from the R1-billion donation the Rupert family made to assist businesses in financial distress as a result of Covid-19. An online application portal is available through which SMEs can apply for assistance. Beneficiaries are encouraged to repay of the loan in order to “pay it forward” and allow future SMEs to apply for funding through the donation. Click here to apply: https://finance.businesspartners.co.za/.
The South African Future Trust (SAFT):
The SAFT is an independent trust set up by Nicky and Jonathan Oppenheimer to extend direct financial support to the employees of SMMEs who are at risk of losing their jobs. This has been funded with an initial contribution of R1 billion, with the aim of mitigating the immediate economic impact of the COVID-19 crisis. SAFT funds will be disbursed as concessionary loans to qualifying SMMEs. These loans will be interest-free over a 5-year term and will be administered by the Partner Banks on behalf of SAFT. Funds will be transferred directly to the employees of the qualifying SMMEs, and the employees themselves will carry no liability. The scheme is currently available to clients of Nedbank, Absa, Standard Bank and FNB and SMMEs need to apply through their main bank.
Contact your bank for more information.
The Temporary Employee Relief Scheme (TERS):
TERS is an intervention which allows employers to pay staff directly during the Covid-19 pandemic and avoid retrenching any of your staff members. Employees will receive a wage payment through TERS. In terms of the TERS process, the UIF may fund your company if you are affected by COVID-19 directly in relation to the TERS allowance. This will be applicable to your company if you have the following:
- registered with UIF
- compliant with the relevant UIF legislation, and
- making your required monthly contributions
Should your business not be compliant, you will be able to undertake to pay outstanding contributions and bring your required declarations up to date within a stipulated timeframe.
Click Here for more information.
What to do First?
You need to first register on https://smmesa.gov.za/ then apply for the following programs:
- Blended Finance Programme
- SMME Business Growth Resilience Facility
- SMME Debt Relief Scheme
- COVID Finance Relief
- Applications and information forms are also available on this website.
You will get a sms that looks like this once registered:
Company Name
This is confirmation of your registration on SMMESA Database. Use your unique ref # 12345 to complete the application form. Application form & guidelines for submission are available on the following websites as of 02 April 2020:
www.dsbd.gov.za
www.sefa.org.za
www.seda.org.za
www.mybindu.org.za
www.smmesa.gov.za
Once completed please see more info on funds above as it has links, contact details and applications forms for the different programs available.