Excellent Resource

This is an excellent website to see what funding you qualify for: https://www.supportbusiness.co.za/covid-19-support-finder/.

COVID-19: THE IMPACT ON SMALL BUSINESSES AND GAPS IN CURRENT SOLUTIONS

We applaud the government for their swift response to the crisis so far and the support they have provided. However, there is a large gap that has not been covered, leaving thriving businesses in townships in a precarious position.

Based off interviews with around 250 entrepreneurs from developing communities in South Africa, we have created the document (find link below). In this document we have identified 4 key gaps and using what we have learned, made 5 recommendations for how to improve support for small business during this time.

Right now, we want to share these findings and get it in the hands of people who can turn these ideas into a tangible change. But, we are students with limited networks.

Do you know of anyone who is currently involved in government interventions for small businesses in South Africa or even better are you someone involved in it? If so, please do reach out so we can share our detailed report with you and work together to make sure these incredible entrepreneurs stay afloat during this time.

You can view the document HERE.

Resources (continously updating)

We aim to make the process of identifying funding opportunities easier for small-business entrepreneurs during the COVID-19 pandemic.

Use the following table to navigate to the information and documentation you may need.

DescriptionIndustryTypeWho it BenefitsAccesibility for Small Businesses
Rupert's Sukuma Relief ProgrammeAllGrant Business ownersGood
COVID-19 Disaster UIF PlanAllUIF benefitsEmployeesModerate
COVID-19 TERSAllUIF benefits Business ownersModerate
SEDA & SEFA: Business Growth FacilityAllLoanBusiness ownersModerate
SEDA & SEFA: Debt Relief Finance SchemeAllLoanBusiness ownersModerate
Agriculture AssitanceAgricultureUncertainBusiness ownersModerate
Tourism Relief FundTourismGrantBusiness ownersModerate
Spaza Shop Support SchemeSpaza shopsCashBusiness ownersModerate
Oppenheimer's SAFTAllLoanBusiness owners/employeesModerate
SEDA & SEFA: Restructuring of funded SMMEsAllDebt restructureBusiness ownersPoor
NEF (National Empowerment Fund) AllLoanBusiness ownersVery poor

Rupert's Sukuma Relief Programme

NOTE: THIS FUND HAS TEMPORARILY CLOSED

The R1bn Sukuma Relief Programme for businesses, started by the Rupert family and Remgro, has been closed temporarily after receiving R2.8bn in applications.

Information

For formal sole proprietors, they offer a grant of R25, 000 per qualifying business to be used to pay for overheads. For more information, see the official website: https://finance.businesspartners.co.za/welcome-to-the-sukuma-relief-programme/.

Requirements

  • Provide evidence of financial activity prior to the COVID-19 outbreak.
  • Be both tax and regulatory compliant.

You can apply online now here.


COVID-19 Disaster UIF Plan

Who is this for?

This encapsulates REDUCED WORK TIME BENEFITS, ILLNESS BENEFITS and DEPENDANTS BENEFITS.

1. Reduced Work Time Benefits

Where a Company shuts down for a certain period or implements Reduced or Short Time.

Requirements
  • UI19 and UI2.7 (completed by Employer)
  • UI 2.1 (application form)
  • UI 2.8 (bank form completed by the bank)
  • A letter from the Employer confirming Reduced Work Time is due to the Corona Virus
  • Copy of employee's ID document

2. Illness Benefits

Where an employee has been quarantined for 14 days, Illness Benefit process will apply.

Requirements
  • UI19 and UI2.7 (completed by Employer)
  • UI2.2 (a portion of which is completed by the Doctor)
  • UI 2.8 (bank form completed by the bank)
  • Copy of employee's ID document

3. Death Benefits

In the undesirable event where a contributor passes on, the following will apply: Benefits are paid to the beneficiaries of the deceased. People eligible to apply are a Spouse, Life Partner, Children and nominated persons, in that order.

Requirements
  • UI19 and UI53 (completed by Employer)
  • UI 2.5 or UI2.6
  • Death Certificate
  • ID of deceased and applicant
  • UI 2.8 (bank form completed by the bank)
  • Copy of employee's ID document

Necessary Docs

Please refer to the following downloadable document for more information. Click here to download the document.


Temporary Employee/Employer Relief Scheme (TERS)

Who is this for?

Employer/s that have had to enforce lockdown as regulated and who might require financial assistance from the UIF.

Documents Required

  • Letter of Authority, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company
  • MOA (completion of the agreement between UIF, Bargaining Council and Employer); only applicable to employers that has more than 10 employees
  • Prescribed template that will require critical information from the employer
  • Evidence/payroll as proof of last three months employee(s) salary(ies)
  • Confirmation of bank account details in the form of certified latest bank statement

Subission of Documents

Submit/transmit all documents as required to UIF via dedicated mailbox Covid19UIFclaims@labour.gov.za

Necessary Docs

Click here to download the documents needed as well as the explaining documents.


SEDA & SEFA: Business Growth Facility

For non-compliant Micro businesses, Seda will assist them to comply and request for assistance must be sent to: growthfund@seda.org.za.

Who is this for?

Businesses who can provide essential products during the time of crisis (these are either health-care related products or essential products that are in short supply).

Benefit

Assistance with the purchase of working capital, stock, bridging finance, purchase order finance and capital finance will be made. Loans will be provided at an interest rate of prime less 5%.

Requirements

General
  • Businesses geared to take advantage of supply opportunities resulting from the Coronavirus pandemic or shortage of goods in the local market
  • Company/business must be 100% owned by South African Citizens
  • Company must be 51% black owned
  • Employees must be 70% 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
  • Registration on the National SMME Database
Funding
  • Complete the online application form (see "Necessary Docs" below or available from www.dsbd.gov.za, www.sefa.org.za and www.seda.org.za)
  • Company Statutory Documents
  • FICA documents
  • Certified ID Copies of Directors/members
  • 6 months Bank Statements
  • Latest Annual Financial Statements or Management Accounts not older than three months from date of application (Statement of Financial Performance and Statement of Financial Position) - where applicable
  • Business Profile
  • Project Execution Plan
  • 12 months Cash Flow Projections (with clear assumptions) - where applicable
  • Copy of Lease Agreement or Proof of ownership
  • Relevant Industry Certification - where applicable
  • Copy of Contract or Purchase Order
  • Facility Statements of Other Funders - where applicable
  • Quotations for applied funding

Email supporting documents and queries to info@sefa.org.za and bizgrowth@sefa.org.za.

Other Notes

Funding seems to be offered in the form of a low interest loan which will have to be repaid.

Necessary Docs

Click here to download the application form and the the document outlining the full details.


SEDA & SEFA: Debt Relief Finance Scheme

Seda will assist micro-enterprises to comply and request for assistance must be emailed to debtrelief@seda.org.za.

Information

Soft loan funding to keep the business afloat. The facility will offer working capital only (direct costs) up to R500k per SMME. Loan facilities will be at an interest rate of prime less 5%.

Requirements

Qualifying Criteria
  • Businesses which are negatively affected due to the Coronavirus pandemic
  • Company must be 100% owned by South African Citizens
  • Company must be 51% black owned
  • Employees must be 70% 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
  • Registration on the National SMME Database
Funding requirements
  • Proof that the business is negatively affected by COVID-19 pandemic
  • Complete the online application form (see "Necessary Docs" below)
  • Company Statutory Documents
  • FICA documents
  • Certified ID Copies of Directors
  • 6 months Bank Statements
  • Latest Annual Financial Statements or Latest Management Accounts not older than three months from date of application (Statement of Financial Performance and Statement of Financial Position) - where applicable
  • Business Profile
  • 12 months Cash Flow Projections (with clear assumptions) - where applicable
  • Copy of Lease Agreement or Proof ownership
  • Facility Statements of Other Funders - where applicable
  • Detail breakdown on application of funds including salaries, rent etc

Email supporting documents and queries to info@sefa.org.za and smmerelief@sefa.org.za.

Other Notes

Funding seems to be offered in the form of a low interest loan which will have to be repaid.

Necessary Docs

Click here to download the application form and the document outlining the full details.


Support for Agriculture Sector

Information

The department has ring-fenced R1.2 billion for assistance to mainly target financially distressed small-scale farmers. Of the R1.2 billion, R400 million has been allocated for farmers within the Proactive Land Acquisition Strategy (PLAS) programme and the remainder will be channelled towards all other farmers that are mainly within the following commodity sectors:

  • Poultry: Day old chicks, Point of lay chickens, feed, medication and sawdust;
  • Other Livestock: Feed and medication.
  • Vegetables: Seedlings, fertilizer, pesticides, herbicides and soil correction.
  • Other commodity sectors will be evaluated on a case by case basis, as the Department continuously monitors the impact of COVID-19 on the sector at large.

Qualifying criteria for farmers

  • South African citizens who have been actively farming for a minimum of 12 months and currently in the production season or cycle.
  • Be registered on farmer register, commodity database or provincial database [Those who are not on the Farmer Register will be registered to benefit].
  • Communal farmers.
  • Smallholder farmers with annual turnover between R50 000 and R1 million.
  • The adjudication will prioritise women, youth and people with disabilities.

Applications

The applications for this funding will be open from 08 April 2020 and will close on 22 April 2020. No late entries will be accepted.

Application forms will be available on 08 April 2020 on the departmental website - www.dalrrd.gov.za and through national, provincial, district and local offices of both the national Department of Agriculture, Land Reform and Rural Development and Provincial Departments of Agriculture.

Applications will be lodged electronically at applications@dalrrd.gov.za or submitted to the offices as outlined.

See this article for more information.


Tourism Relief Fund

Information

R200 million relief fund to help SMMEs in the tourism and hospitality industries mitigate the devastating impact of the coronavirus and the impending 21-day lockdown. See the full details in this document. The grant funding is capped at R50 000 per entity.

Requirements

Category of Businesses
  • Hotels, resort properties and B&Bs.
  • Restaurants, conference venues, professional catering businesses, and tourist attractions.
  • Tour operators, travel agents, tourist guides, car rental companies, and coach operators
Qualifying Criteria
  • Turnover not exceeding R2.5 million
  • Ability to guarantee employment of a minimum number of staff for three months
  • Proof of tax compliance
  • Have been established for at least one financial year
  • Able to prove that relief is required due to the impact of COVID-19

Applications

You can apply directly with the online form here. Applications are open from 07 April to 30 May 2020.


Spaza Shop Support Scheme

Information

Participants will get bulk buying discounts from pre-selected wholesalers as well as access to basic business tools, including speed points. They will also get business support, including book-keeping assistance.

Requirements

  • The spaza shops must register with the SA Revenue Service, the Unemployment Insurance Fund and the Companies and Intellectual Property Commission. Ntshavheni stressed that this does not mean that spaza shops will necessarily start paying tax, but that they needed to be legally registered.
  • The spaza shops must be owner-managed, and must have a bank account.
  • Spaza shops must be willing to buy products produced by South African small businesses as part of the bulk-buying schemes.
  • They must be willing to submit monthly management accounts for at least 12 months.
  • Shops must comply with sanitation requirements, including that their counters are disinfected.
  • They must hold a permit to trade from the local municipality. If they don't have these permits already, the South African Local Government Association (SALGA) has agreed to help with permits during the lockdown.

Other information

Foreign-owned spaza shops may able to apply for financial help under this plan, but the department has indicated that locally-owned businesses will receive preference, and that some forms of assistance, such as low interest rate loans, may be limited to South African owned businesses.


Oppenheimer's South African Future Trust (SAFT)

Information

SAFT will extend direct financial support (via interest-free loans) to SMME employees who are at risk of losing their jobs or will suffer a loss of income because of COVID-19. Employees themselves will not be liable to pay the money back, but companies will be.

Eligibility Criteria

  • Annual turnover below R25M
  • Trading for at least 24 months
  • Sustainable business on 29th February 2020
  • Business adversely impacted by COVID-19

Required Documents

  • Company identification - registraion number (if company or closed corporation); ID number and business address (if sole proprietor)
  • A valid PAYE Number registered with SARS (if applicable)
  • A valid income tax number registered with SARS
  • Confirmation of permanent employment status of employee

More information

See the SAFT website for more information.


SEDA & SEFA: Restructuring of funded SMMEs

Information

Payment moratorium/holiday. This is for SMMEs already funded by sefa, in order to defer their repayments.
Debt restructuring. Again for sefa funded SMMEs, offering an extended loan term.

Requirements


NEF (National Empowerment Fund)

Information

The NEF is managing the DTI COVID-19 Relief fund. Offering assistance between R250000-R75million.

Requirements (among others)

  • Complete business plan and financial projections. Specifically, 3 years audited financials and 5 years financial projections.

Other Notes

This application is very in depth and the requirements seem to be for far larger businesses. Essentially, the DTIC fund is for large businesses and it comes in the form of a LOAN (so this is not like grant funding and it will have to be repaid).

Necessary Docs

Click here to download the NEF application form.