Funding and support for your SME

Find out where to access Covid-19 relief

Industrial Development Corporation (IDC) MCEP (manufacturing competitiveness enhancement programme) COVID-19 PROGRAMME

Target market

Companies that manufacture and provide essential supplies.

Take advantage of Covid-19 relief funds if your business qualifies.

Type of support

  • MCEP funding can be stand-alone or blended with IDC.
  • Limited to R3-million per applicant in total.
  • Priced at a fixed rate of 2.5% per annum.
  • Maximum term is 48 months, including moratorium.
  • First drawdown must occur within one month of approval date.
  • Raising and commitment fees are excluded.
  • All other standard fees apply.

Eligibility

  • Companies that manufacture and provide essential supplies and have been in existence for more than one year.
  • Valid contract/purchase order or letter of intent.
  • Companies with BBBEE Level 4 status will be encouraged.

How to apply

Submit documents to callcentre@idc.co.za.

IDC COVID-19 ESSENTIAL SUPPLIES INTERVENTION

Target market

All businesses that have the capacity to acquire and/or manufacture products needed to treat, curtail and combat the spread of the Covid-19 pandemic.

Type of support

  • Short-term loan for once-off contract or import funding.
  • Revolving credit facility.
  • Guarantees to banks for banking facilities, imports, ordering requirements.
  • Term to be limited to a maximum of three months for all facilities.
  • IDC loan and trade finance facilities: Prime plus 1%.
  • MCEO loan facilities: 2.5% per annum.
  • Guarantees: 2% per annum.

Eligibility

  • Companies that have a track record of manufacturing comparable products.
  • In the case of imports and trade finance the lack or insufficiency of local manufacturing should be confirmed and capacity and experience to import at the required scale should be demonstrated.
  • Should be an accredited supplier.
  • Should demonstrate profitability as per historical financial statements.
  • The intention should not be profiteering – the mark-up should be reasonable.
  • Contract or purchase order with either the South African government or a strong customer for essential supplies.
  • In the absence of a contract or orders, a corporate guarantee from a company with investment-grade may be considered.
  • Geographic focus to be South Africa and SACU.
  • Exports are allowed if it forms part of a bigger contract for manufacturing, but an excess portion of products is exported.

How to apply

Contact the IDC on 0860 693 888 or send an email to covid@idc.co.za for more details. Visit the website www.idc.co.za.

BUSINESS GROWTH RESILIENCE FACILITY

Target market

Businesses taking advantage of supply opportunities resulting from the Covid-19 pandemic.

Type of support

Production or supply of healthcare and related products that will be used to combat the spread of the Covid-19 pandemic. Local production, manufacturing or supply of various products that will be required by the country emanating from a shortage due to the COVID-19 pandemic.

Eligibility

  • Businesses geared to take advantage of supply opportunities resulting from the COVID-19 pandemic or shortage of goods in the local market.
  • Company or business must be 100% owned by South African citizens.
  • Company must be 51% black-owned.
  • 70% of employees must be South Africans.
  • Priority will be given to businesses owned by women, youth and people with disabilities.
  • Be registered and compliant with SARS.
  • Be UIF-compliant.

How to apply

Submit funding application with registration number and supporting documents to the dedicated Sefa email address: info@sefa.org.za

RESTRUCTURING OF SMALL ENTERPRISE FINANCE AGENCY (SEFA) FUNDED SMMEs

Administered by the department of small business development, Seda and Sefa

Target market

Sefa-funded SMMEs.

Type of support

  • Payment moratorium/holiday
  • The maximum term of the facility is 6 months.
  • Deferments of capital or both capital and interest. The interest accrued will not be capitalised to the loan facility over the proposed maximum six-month period.
  • Debt restructuring: Potentially extended loan term, interest review and additional funding where required.
  • Debt repayments will be sculpted to match the pattern of the cashflow.
  • The additional funding will be offered at prime -5%.

Eligibility

Sefa-funded SMMEs that are negatively affected by the Covid-19 pandemic.

How to apply

Enquiries to be directed info@sefa.org.za.

OLD MUTUAL INSURE COVID SUPPORT PLAN – R50 MILLION FUND SIZE

Target market

R40-million to assist qualifying SMEs to remain solvent. R10-million for Old Mutual Insure’s own suppliers and service providers impacted by Covid-19, which will be assisted to sustain operations.

Type of support

Interest-free loans will be granted to qualifying businesses and will be administered by the Old Mutual Masisizane Fund in partnership with Old Mutual Insure.

Eligibility

Not specified yet.

How to apply

Visit the Old Mutual Website at www.oldmutual.co.za/covid-19.

GIVING FOR HOPE – Willowton Group (R85-million) Al Baraka Bank (R10-million) SA Muslim Charitable Trust (R5-million)

Target market

Funding for small, medium and microenterprises (SMMEs) to prevent job losses during the difficult times that lie ahead.

Type of support

The foundation will provide SMMEs with interest, profit and admin cost-free loans for two years, with repayments commencing after the first year, in 12 monthly instalments.

Loans will:

  • Be over 24 months
  • Be 0% interest-free
  • Have no admin or profit added.

Repayments will:

  • Commence from month 13, following the loan grant
  • Be 12-monthly instalments in year two.

Eligibility

  • Restricted to socially responsible (Shar’iah-compliant) SMMEs.
  • Annual turnover of qualifying SMMEs to be less than R20-million per year.
  • Minimum number of employees at the SMME at the time of application is five.
  • Loan currently limited to R1-million per applicant.
  • Open to all registered South African businesses that operate in South Africa.
  • Security will be required for each loan applicant.
  • Successful loan applicants will be required to open an account with Al Baraka Bank, free of any charges, except cash deposit fees.

How to apply

Applications will be evaluated on a case-by-case basis.

For more information and applications: https://givingforhope.co.za/apply-for-funding/.

YOUTH BUSINESS RELIEF FUND

An initiative of the Youth Chamber of Commerce and Industry South Africa.

Target market

YCCISA has introduced this relief fund to assist young people with businesses that are affected by the Covid-19 pandemic.

Type of support

The fund will assist youth entrepreneurs with operational costs, paying labour costs, rental, etc.

Eligibility

  • Be a South African citizen.
  • Be between 18 and 35 years of age.
  • Be an existing business.
  • Business categories: All youth businesses, but mostly informal traders, who are not included in other rescuing funding methods put in place by government.

How to apply

Applications should be forwarded to applications@youthbusinessfund.co.za. For detailed information on the fund and further document requirements, visit: www.youthbusinessfund.co.za.

SOLIDARITY FUND

R2-billion fund size (open to donations)

Target market

Healthcare system. Households and communities. SMMEs to sustain their employees through the economic shutdown.

Type of support

Designed to be an umbrella platform for contributing to the fight against the Covid-19 pandemic and is aimed at three key focus areas:

  1. Health response
  2. Solidarity campaign
  3. Humanitarian effort

Eligibility

Information to be obtained by contacting their call centre on 0860 001 001 or visiting the website https://www.solidarityfund.co.za/.

How to apply

The Solidarity Fund can be contacted via: 0860 001 001 or visiting their website https://www.solidarityfund.co.za/

The Solidarity Fund would be used for assistance where it was most needed (and though they will be included) and will not be specifically earmarked for SMEs.

COVID-19 BUSINESS RESCUE ASSISTANCE (COBRA) 

Administered by consortium: Schindlers Attorneys, IQBusiness, Engaged Business Turnaround

Target market

Pro bono service to South African businesses in distress to coordinate bank, government and stakeholder support through a structured business rescue process.

Type of support

This hub helps SMEs to understand the following:

  • What business turnaround and rescue entails
  • What it could do for the business
  • How it will affect the ownership structure of the business
  • How the process unfolds
  • What negotiation tools are at their disposal
  • How to access post-commencement financing
  • What legalities are involved, and a myriad other issues.

Eligibility

Any distressed business has access to free daily (small group) and weekly (large group) webinars to share information/guide business leaders. The COBRA War Room provides business support to avoid business rescue (pro bono or discounted fees).

How to apply

Contact: info@cobra.org.za and visit their website at www.cobra.org.za.