7 COVID-19 Business Rescue Funds to Help SMEs

7 COVID-19 Business Rescue Funds To Help SMEs

As small businesses suffer the impact of the Covid-19 pandemic and national lockdown, the Minister for Small Business Development,  Khumbudzo Ntshavheni, announced details of the intervention measures to support SMMEs affected by the Covid-19 disaster.

“We’ve put in a facility for a national debt relief facility for small businesses in sectors such as hospitality…We are focusing on South African nationals…we want to do interventions, helping with repayment either with their mortgage, vehicle or whatever else they want assistance with,” said Ntshavheni.

Ntshavheni said a monitoring team will trace the progress of how payments will be made and avoid red tape.

Business owners suffering the impact of the COVID-19 can still apply for relief funding.

See the list below:

1.The SMME Relief Finance Facility will provide soft-loan funding for existing businesses which are distressed due to the effects of the Covid-19 pandemic. The aid will be available for six months from 1 April 2020, although businesses may apply for a longer period of assistance if additional assistance is required.

2. The SEFA-Debt Restructuring Facility is geared towards SMMEs which are already funded by the Small Enterprise Funding Agency (SEFA) and are negatively affected by the Covid-19 outbreak. SEFA will grant a payment holiday for up to six months.

3. The Industrial Development Corporation (IDC) has put a package of more than R3-billion together for industrial funding to address the situation of vulnerable firms and to fast-track financing for companies critical to efforts to fight Covid-19 and its economic impact. R200-million in aid has been made available by the Department of Tourism to assist SMMEs in the tourism and hospitality sector who are under particular stress due to the travel restrictions.

4.UIF Covid-19 Temporary Relief Benefit

Temporary UIF relief fund for businesses that suffer distress directly dueto Covid-19 – claims for 3 months or less.

• You need to be up-to-date with all UIF payments.
• Employee will be paid in terms of the income replacement rate sliding

scale (38% -60%) as provided in the UI Act, max R17 712 per month.

Businesses to apply on behalf of employees.

Email applying documents to covid19ters@labour.gov.za.

5. SA Future Trust (SAFT)

Salary support for SMEs with less than R25 million annual revenue.

Requirements are as follows:

• Businesses must be under stress directly due to the Covid-19 outbreak and in a strong financial position prior to the crisis.
• Interest-free loan with 5-year term, paid directly to employees from banks.
• R750 per qualifying employee per week, over a max period of 15 weeks, or R11 250 per permanent employee

Standard Bank, Nedbank, FNB and Absa to manage applications and

weekly payment. More information available at https://opp-gen.com/saft/

6. Sukuma Relief Fund – Business Partners

Available for all industries but must have evidence of financial viability prior to Covid-19 as well as be tax & regulatory compliant.

Close corps, companies and trusts: must be registered, unsecured interest-bearing loan of R250, 000 – R1 million coupled with a non-

repayable grant of R25,000. 60-month max loan term. No repayment obligations in yr 1, no interest for yr 1, interest at prime and

repayment commence from year 2

Sole proprietors: Non-repayable grant of R25,000. Must be registered

and compliant, and employing 2 or more people. Online application process only, payouts in 7 days. Apply at https://finance.businesspartners.co.za/welcome-to-the-sukuma-relief-programme/

7. NEF Covid-19 Fund

Businesses will get funding for working capital, machinery and equipment to manufacture and supply a range of medical products.

R500 000 to R10 million concessionary loan for black-owned businesses with existing retail supplier relationships.

Up to 60 months repayment, 0% interest in first year. Applications open through NEF website www.nefcorp.co.za

Find out how we can help your business to be compliant by emailing

Email info@mgt-accounting.co.za www.mgt-accounting.co.za