The global health pandemic wreaked havoc on, not only the economy but also on small businesses. Nonessential businesses had to cease operations at the height of stringent lockdown regulations. Lockdown is now on level 1, and although we’re not in the clear yet, economic activity has resumed.

If you’re in the process of rebuilding your business that was negatively affected by COVID-19, then we have a comprehensive list of small business grants available for South African companies.

 

Debt Relief Finance Scheme

The Debt Relief Finance Scheme is described as a ‘soft-loan’ by gov.za. The loan is for small and medium businesses that were directly or indirectly affected by COVID-19.

Who qualifies? 

  • Must be registered with CIPC by the 28th of February 2020 
  • Must be 100% owned by South African citizens
  • Priority will be given to women, youth and people with disabilities 
  • Must be SARS and UIF compliant 
  • Seda will assist micro-enterprises to comply and request for assistance must be emailed to debtrelief@seda.org.za
  • Be registered on the SMME Database https://www.smmesa.gov.za/

What do you need to apply? 

  • Proof that your business was negatively affected by COVID-19
  • Complete online application
  • FICA documents
  • 3-month bank statement
  • Latest Annual Financial Statements or Latest Management Accounts not older than three months from date of application
  • Business profile
  • Employee details for those applying for payroll relief
  • Detailed breakdown of funds
  • Register on https://smmesa.gov.za/
  • Complete the online application form (SMMESA reference number required. Obtain this number at the start of the registration)
  • Upload required supporting documents
  • Email applications to smmerelief@sefa.org.za
  • The editable application form for Debt Relief and the Business Growth Scheme can be downloaded from any of the following websites: www.dsbd.gov.zawww.sefa.org.zawww.seda.org.zawww.mybindu.org.za and www.smmesa.gov.za

 

Restructuring of SEFA-funded loans

This Debt Restructuring facility is for Small Enterprise Finance Agency (SEFA)-funded small, medium and micro enterprises (SMMEs) which are negatively affected by the pandemic. A payment holiday will be given to the qualifying businesses for six months.

Who qualifies? 

  • SEFA-funded SMME’s that are negatively affected by the pandemic

How to apply: 

 

Business Growth/Resilience Facility

This fund is for small, medium and micro enterprises (SMMEs) who locally manufacture or supply hygiene, medical products, and food items which are in demand to curb and manage the spread of the Covid-19 virus.

Who qualifies? 

  • Must be registered with CIPC by the 28th of February 2020 
  • Owned 100% by South African Citizens
  • Employees must be at least 70% South African
  • Must be SARS and UIF compliant 
  • Seda will assist micro-enterprises to comply and request for assistance must be emailed to debtrelief@seda.org.za
  • Be registered on the SMME Database https://www.smmesa.gov.za/

What do you need to apply? 

  • Complete online application
  • CIPC registration documents
  • FICA documents
  • 3-month bank statement
  • Latest Annual Financial Statements or Latest Management Accounts not older than three months from date of application
  • 6 months Cash Flow Projections – where applicable
  • Relevant Industry Certification – where applicable
  • Business profile
  • Employee details for those applying for payroll relief
  • Detailed breakdown of funds
  • Estimations for funding

How to apply: 

 

Spaza Support Scheme

This fund aims to strengthen Spaza shops as they are a convenient source of basic goods.

Who qualifies? 

  • Permit holding, owner-managed South African Spaza shops.

How to apply: 

 

COVID-19 Agricultural Disaster Support Fund

This fund is for smallholder and communal farmers.

Who qualifies?

  • Smallholder/communal farmers with a minimum turnover of R20 000, but not exceeding R1 million per annum.
  • South African citizens who have already been farming for at least 12 months.
  • Farmers producing: poultry, vegetables, fruits, other livestock, and winter field crops

How to apply: 

Application forms are available at both the national, provincial and district offices of the Department of Agriculture, Land Reform and Rural Development. Alternatively, access the application forms via our website: www.dalrrd.gov.za or individuals can apply online by sending an email to applications@dalrrd.gov.za

 

Tourism Relief Fund

The Tourism relief fund provides a once-off capped grant to small, medium and micro enterprises (SMMEs) in the tourism. The fund is capped at R50 000 per entity.

Who qualifies? 

  • Accommodation establishments: Hotels; Resort properties; Bed and Breakfast (B&B’s); Guesthouses; Lodges and Backpackers.
  • Hospitality and related services: Restaurants (not attached to hotels); Conference venues (not attached to hotels), Professional catering; and Attractions
  • Travel and related services: Tour operators; Travel agents; Tourist guiding; Car rental companies; and Coach Operators.

How to apply: 

  • The fund has R200 million, and funding is capped at R50 000 per entity.
  • Visit www.tourism.gov.za for comprehensive information on the fund terms and qualifying criteria. SMMEs can submit funding applications by completing a form accessible online at www.tourism.gov.za/Pages/COVID19tourismrelieffundaspx
  • Inquiries on the fund can be emailed to callcentre@tourism.gov.za(link sends e-mail) or covidrelief@tourism.gov.za. Alternatively, contact the call centre telephonically on 0860 TOURISM (868 747) weekdays from 08:00 – 22:00.

 

Tax measures to combat the COVID-19 pandemic

This grant is for tax compliant businesses.

Who qualifies? 

  • Tax compliant businesses

How to apply: 

  • You can apply at SARS

 

These tax relief measures include:

  • The introduction of a tax subsidy to employers of up to R500 per month for the next four months for those private-sector employees earning below R6,500 under the Employment Tax Incentive.
  • The South African Revenue Service will accelerate the payment of employment tax incentive reimbursements from twice a year to monthly, to get cash into the hands of tax-compliant employers as soon as possible
  • Tax compliant businesses with a turnover of R50 million or less will be allowed to delay 20% of their employees’ tax liabilities over the next four months, as well as a portion of their provisional corporate income tax payments without penalties or interest over the next six months. This intervention is expected to assist 75 000 small and medium-term enterprises.

 

Loan guarantee scheme

Who qualifies?

  • Eligible businesses

How to apply: 

Eligible businesses can access this financial relief measure by contacting their respective banks directly. The loan guarantee scheme is an initiative to provide loans, guaranteed by the government, to businesses with an annual turnover of less than R300 million, to meet some of their operational expenses. Funds borrowed through this scheme can be used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers, etc. Government and commercial banks are sharing the risks of these loans. Initially, the National Treasury has provided a guarantee of R100 billion to this scheme, with the option to increase the guarantee to R200 billion if necessary, and if the scheme is deemed successful.

Contact details:

Participating banks include Absa, First National Bank, Investec, Mercantile Bank, Nedbank and Standard Bank.