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Business Recovery Package

Business Recovery Package

Notice

Please note that the processing of all Business Rescue Fund applications has been closed.

Overview

The Business Recovery Package (BRP) is a blended finance scheme aimed at assisting uninsured businesses that were negatively affected by the recent vandalism and looting in KwaZulu-Natal and Gauteng. Its primary objective is to support entrepreneurs to rebuild their businesses and preserve much-needed jobs.

Objectives

The package is designed to target the socio-economic challenges of small enterprises in townships, rural areas, and small towns directly affected by the recent unrest, through:

  • Supporting the most vulnerable from business closure, job losses and income reductions

  • Providing resources to promote social inclusion in building back after the unrest

  • Providing support to the social and solidarity economy to fulfill their missions in relation to responding to impacted community needs

  • Investing in small businesses and traders which have suffered the effects of the unrest

  • Re-establishing supply-chains and routes to market

  • Supporting entrepreneurship and strengthening business partnerships

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Support

Financial support

The programme offers the following financial support:

  • Blended finance, which is a combination of a grant (60%) and a loan (40%)

  • A 5% limit on the interest rate of the loan component

  • Initial payment moratorium of up to 6 months

  • Repayment period of a maximum of 60 months.

  • Maximum funding accessible per entity (enterprise) of R2-million

Non-financial support

Pre-investment

Small enterprises will be assisted by the Small Enterprise Development Agency (Seda) to package their funding applications (incomplete applications).

Post-investment

The programme, through Seda, will offer customised business development support based on the needs of the small enterprises.

Qualifying criteria

  • The small enterprise must:
    • Be negatively affected by the unrest that took place in July 2021 (SAPS case number and police statement must be submitted)

    • Be a registered legal entity in South Africa (CIPC)

    • Be 100% owned by South African citizens

    • Have been in operation as at 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

  • Preference will be given to businesses in KwaZulu-Natal and Gauteng

  • An affidavit 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)

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