Johannesburg - Since the beginning of August, the Small Enterprise Finance Agency (sefa) has been working to assist small businesses affected by the devastating recent looting and unrest in KwaZulu-Natal and Gauteng.
sefa believes that assisting small, medium and micro-enterprises (SMMEs) is vital – these businesses are at the heart of South Africa’s economy and are key to the country’s growth. One of the agency’s functions is to foster small enterprises so that they, in turn, can contribute towards job creation, economic growth and poverty alleviation..
The devastating recent looting and unrest in KwaZulu-Natal and Gauteng have severely affected many small businesses.
“At sefa, we acknowledge the difficulties small enterprises face, and we have been determined since the beginning of August to support as many South African small business owners as possible to get back on their feet.
“We want to be part of the solution to rebuild our economy, which is why we have partnered with the Department of Small Business Development (DSBD) and the Small Enterprise Development Agency (SEDA) to support uninsured South African SMMEs through funding. The Business Recovery Package, open for applications until 20 August, is geared towards providing working capital to uninsured small enterprises affected by the unrest.” said Mxolisi Matshamba, Chief Executive Officer of sefa.
sefa’s Business Recovery Package eligibility criteria is as follows:
- The small enterprise must:
- Be negatively affected by the unrest that took place in July 2021 (a SAPS case number and police statement must be submitted)
- Be a registered legal entity in South Africa (through the CIPC)
- Be 100% owned by South African citizens
- Have been in operation as of 30 June 2021 (bank statements to prove operations)
- Be registered and compliant with the South African Revenue Service
- Be registered on the national SMME database – https://smmesa.gov.za
- An affidavit must be supplied confirming that the business is not insured (the conditional grant provided in the scheme will be converted into a loan should the business benefit from insurance post-approval).
Please note that the following businesses are not eligible:
- Labour brokers
- Manufacturers and sellers of ammunition
- Those in the tobacco, liquor, gambling, and sex trade
- Non-profit organisations
- Political organisations
- Persons under debt review
- Unrehabilitated insolvent shareholders and/or directors of applying entities
- Speculative property development
- Informal businesses are excluded since there is a dedicated support package for them (the Informal Traders Support Package)
In helping the government to accelerate small business owners’ access to finance, sefa is working with various partners to make this affordable by implementing a blended finance model. This model involves a mix of grants and loans to lower the cost of capital for borrowers.
To find out how you can access funding through the Business Recovery Package, visit http://www.sefa.org.za.
Applications close on Friday 20 August 2021.