COVID-19 SMME Support
14 July 2020
Economic relief measures during COVID-19
The Department of Small Business Development has several interventions available to qualifying SMMEs.
The editable application form for Debt Relief and the Business Growth Scheme can be downloaded from any of the following websites:
Email applications to smmerelief@sefa.org.za or make a general enquiry on info@dsbd.gov.za
08 May 2020
National Treasury Loan Scheme for SMEs
As announced by the President, National Treasury, the South African Reserve Bank and commercial banks have jointly created a guaranteed loan scheme. The purpose of this scheme is to help small and medium-sized businesses and the economy. In terms of this scheme, R200 billion will be ultimately made available for new loans to existing customers. The initial phase will be R100 billion. The key features of the Covid-19 loan guarantee scheme are:
- Covid-19 loans will be available from banks to eligible businesses in good standing with their commercial banks with an annual turnover of less than R300 million.
- Funds borrowed through this scheme can be used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers, etc. Loans will cover up to three months of operational costs and will be drawn down monthly.
- Banks are not obliged to extend Covid-19 loans, and those that do will use their normal risk evaluation and credit-application processes. A business’ owners may be required to sign surety for the loan.
- Each business may accept only one Covid-19 loan.
- Covid-19 loans will be offered at a single, agreed lending rate by all banks participating in the scheme. The rate will track the repo rate.
- A six-month repayment holiday will commence from the first drawdown, although interest will accumulate from the date on which the first drawdown on the loan occurs.
- Repayment of interest and capital starts after six months and businesses have a maximum of 60 months to do so. Borrowers can repay the loan ahead of schedule.
- The scheme will be rolled out by banks over the next few weeks.
04 May 2020
Department of Small Business Development: Small business support programmes in response to COVID-19
The Department of Small Business Development has put together a response plan in light of COVID-19 aimed at small business. The purpose is to:
- To share the interventions that have been introduced as part of the relief measures.
- To share practical plans that are aimed at supporting SMMEs to recovery post the “hard lockdown”.
- To also present a plan on the differentiated interventions aimed at supporting various categories of informal businesses.
15 April 2020
Relief Funding and Loans
There are a number of funding and loan initiatives targetting varying SMEs. Each relief initiative has certain criteria and an affiliated application process.
14 April 2020
IDC COVID-19 Essential Supplies Intervention
The IDC COVID-19 Essential Supplies Intervention is designed to provide funding to companies that have the capacity to acquire and/or manufacture products needed to treat, curtail and combat the spread of the COVID-19 pandemic. The following financial instruments are available:
- Short-term loan for once-off contract or import funding
- Revolving credit facility
- Guarantees to banks for banking facilities, imports and order requirements
Read more about these and other stories in the IDC newsletter
07 April 2020
COVID-19: Important matters relating to Government Assistance
President Ramaphosa announced that the government will be assisting employees and employers during the COVID-19 pandemic using various
government funding initiatives. The summary covers the following:
1. Department of Labour:
- UIF
- Compensation Fund
- National Disaster Benefit fund- TERS (UIF)
2. Department of Small Business Development
- Debt relief
- SMME business growth
3. Department of Tourism
4. IDC
5. Solidarity Fund
6. SA Future Trust
7. Business Partners
8. Informal business
01 April 2020
SMMES: Debt Relief Finance Scheme Guidelines
Businesses that are negatively affected, directly or indirectly, due to the Coronavirus pandemic may qualify as a benefiting SMME. These companies will need to meet the qualifying criteria. Applicants need to register on https://smmesa.gov.za/, complete the online Application Form and upload Required Supporting Documents.
30 March 2020
SMMEs debt relief finance scheme
Businesses that are negatively affected, directly or indirectly, due to the Coronavirus pandemic may qualify as a benefiting SMME. These companies will need to meet the qualifying criteria. Applicants need to register on https://smmesa.gov.za/, complete the online Application Form and upload Required Supporting Documents.
Direct queries to info@dsbd.gov.za or 0860 663 7867
30 March 2020
SMMEs business growth/resilience facility
Businesses geared to take advantage of supply opportunities resulting from the Coronavirus pandemic or shortage of goods in the local market have been identified as benefiting SMMEs. These companies will need to meet the qualifying criteria. Applicants need to register on https://smmesa.gov.za/, complete the online Application Form and upload Required Supporting Documents.
Direct queries to info@dsbd.gov.za or 0860 663 7867
24 March 2020
COVID-19 SMME emergency funding package
The Department of Small Business Development has detailed the packages which will be administered by sefa in order to support SMMEs in response to the COVID-19 pandemic. The following interventions are included:
- Business Growth Facility
- SMME Relief Finance and2.
- Restructuring of sefa funded SMMEs3.
For qualifying businesses, the Emergency Funding package will under no conditions be used for what it was not intended for. SMME can submit funding applications with www.smmesa.gov.za registration number and supporting documentation to dedicated sefa email address info@sefa org za
