last updated – 03 April 2020
IDC MCEP Loan – COVID-19 Essential Product Manufacturing
Fund Type
- Loan
General
- Administered by the Industrial Development Corporation – from DTIC
- For working capital and plant & equipment requirements
- Fund Value – R300 million
- Maximum funding – R30 million per entity
Cost of finance
- Priced at a fixed rate of 2.5% per annum
- Maximum term is 48 months, including moratorium
Qualifying Criteria
- Be a registered legal entity in South Africa
- Companies that has been operational for at least a year
- Companies must have a valid contract/purchase order or letter of intent
- Applicable to manufacturers of COVID-19 essential goods
- Companies with BBBEE Level 4 will be encouraged
More information
IDC COVID-19 Fund – COVID-19 Essential Product Manufacturing and Suppliers
Fund Type
- Loan
General
- Administered by the Industrial Development Corporation
- Short term loan for once-off contract finance or import funding,
- revolving credit, guarantees for imports
Cost of finance
- Loans priced at prime + 1 % per annum
- Guarantees 2% per annum
- Maximum term is 3months, including moratorium
Qualifying Criteria
- Track record in manufacture or supply of comparable product – ability to deliver
- Companies should show profitability prior to application
- Companies to be registered as a vendor with Government, Multinationals or retailers
- Be a registered legal entity in South Africa
- Companies that has been operational for at least a year
- Companies must have a valid contract/purchase order or letter of intent
- Companies with BBBEE Level 4 will be encouraged
More information
TOURISM FUND
Fund Type
- Loan
General
- Administered by Department of Tourism
- Assist SMMEs in the tourism and hospitality sector who are under
- particular stress due to the Covid 19 travel restrictions.
- Fund Value – R200 million
- Maximum grant: unsure
Qualifying Criteria
- Must be a formally registered business with Companies and Intellectual Property Commission (CIPC).
- Turnover must not exceed R2.5 million per year.
- Must have a valid tax clearance certificate.
- Guaranteed employment for a minimum number of staff for a period of 3 months.
- Proof of minimum wage compliance.
- Must provide proof of UIF registration for employees employed by the business.
- Be an existing tourism-specific establishment as outline in the scope of application (suppliers and intermediaries are not eligible).
- Must be in existence for at least one business financial year.
- Prove that the relief is required as a result of the impact of COVID-19.
- Must submit statements of financial position
- Indicate the intended use of the resources.
Delivery Mechanisms
The relief will be distributed in a spatially equitable manner to ensure that all provinces benefit.
- At least 70% of beneficiaries will be businesses that are Black owned.
- At least 50% of beneficiaries will be businesses that are women owned.
- At least 30% of beneficiaries will be businesses that are youth owned.
- At least 4% of beneficiaries will be businesses that are owned by people with disabilities.
More information
DEBT RELIEF FINANCE SCHEME
Fund Type
- Loan
General
- Administered by Department of Small Business Development
- To benefit businesses that are negatively affected, directly or indirectly, due to the Coronavirus pandemic to mitigate against job losses and the expected harsh economic impact.
- Fund Value – R500 000 000
Qualifying Criteria
- Registered with the CIPC by at least the 28 February 2020
- Company must be 100% owned by South African Citizens
- Employees must be 70% South Africans
- Priority will be given to businesses owned by Women, Youth and People with
- Disabilities
- Applicants must demonstrate direct link of impact or potential impact of Covid-19
More information
- Complete online Application Form (to be released on Thursday, 02 April 2020)
- https://www.mybindu.org.za/
BUSINESS GROWTH / RESILIENCE FACILITY
Fund Type
- Loan
General
- Administered by Department of Small Business Development
- For businesses geared to take advantage of supply opportunities resulting from the Coronavirus pandemic or shortage of goods in the local market.
- Fund Value – R500 Million
Qualifying Criteria
- Registered with CIPC by at least 28 February 2020
- Company must be 100% owned by South African Citizens
- Employees must be 70% South Africans
- Priority will be given to businesses owned by Women, Youth and People with
- Disabilities
- Applicants must demonstrate direct link of impact or potential impact of Covid-19
More information
- Complete online Application Form (to be released on Thursday, 02April 2020)
NEF LOAN
Fund Type
- Loan
General
- Administered by the National Empowerment Fund
- R200 Million from the DTIC
- For black business to purchase machinery, raw materials and other items
- Fund Value – Loans between R500 000 – R10 000 000
Cost of finance
- Offered at 0% interest in year 1 and fixed at 2.5% thereafter
Qualifying Criteria
- Must produce hand sanitisers, disinfectants, hand soaps, facial masks, gloves, medical
- protective clothing and steel beds, maize meal, flour, beans, cooking oil among other
- items
- Must be registered supplier for retailers or institutions that have agreed to purchase
- the manufactured products
- Tax compliance and commercial viability is a pre-requisite
More information
COVID-19 SME FUND
Fund Type
- Loan
General
- Administered by Business Partners (Rupert Foundation & Remgro)
- For working capital (Salaries, rent, HPs, Loan installments)
- Fund Size R900mil (R100mil for Sole Prop & Partnerships administered by PWC)
- Transaction Value – Loans between R250 000 – R1 000 000
Cost of finance
- M1 – M12 0%, payment holiday for first 12 months, no early payment implications
- M12 – M60 Prime interest, no early payment implications
- Monthly disbursements
Qualifying Criteria
- Feb 2019 AFS signed (non negotiable)
- Fully compliant entity
- Formal registered entity
- Ownership does not have to be SA Citizens
- Excludes: Direct agriculture, non-profit organisations, Underground mining, On-lending
More information
AUTO FUND
Fund Type
- Loan
General
- Fund Value – R6 Billion
Cost of finance
- To be finalized
Qualifying Criteria
- To be finalized
SAFT – SA FUTURE TRUST
Fund Type
- Loan
General
- Support to SMME employees at risk of losing their jobs or who will suffer loss of income due to COVID
- Fund Size: Openheimer R1bil relief fund
Cost of finance
- 5year 0% interest free loan
Qualifying Criteria
- Annual turnover below R25mil
- Trading for min 24 months
- Sustainable business on 29 February 2020
- Must be an ABSA, FNB, Nedbank or Standard Bank client
More information
- REGISTRATION IS DIRECTLY WITH YOUR BANK
- https://opp-gen.com/saft/#eligibility
AGRO-PROCESSING SUPPORT SCHEME GRANT
Fund Type
- Grant
- The objective of the APSS is to stimulate investment by South African Agro-processing/beneficiation (agri-business) enterprises.
- Administered by the DTI
- Maximum funding – R20 million per entity
- 20 to 30% grant on capital costs
Cost of finance
- This is a grant
Qualifying Criteria
- Be a registered legal entity
- Possess a tax clearance certificate
- Be involved in starting a new Agro-processing operation or in expanding or upgrading an existing Agro-processing operation
- Submit a valid B-BBEE certificate (minimum level 4)
- Purchase 30% of supplies from black owned farmers
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BLACK INDUSTRIALIST SCHEME GRANT
Fund Type
- Grant
General
- The Black Industrialist Scheme (BIS) incentive offers a grant on a cost sharing basis.
- Administered by the dti
- Maximum funding – R50 million per entity
- 30 to 50% on mainly capital costs – not acquisitions
Cost of finance
- This is a grant
Qualifying Criteria
- Be a registered legal entity in South Africa
- Be aligned to the productive sectors of the economy within the identified sectors
- The applicant must have greater than fifty percent (>50%) shareholding and management control
- The applicant must be directly involved in the day-to-day running of the 0peration and must have requisite expertise in the sector.
More information