COVID-19 Title

SAVCA’s response to the containment of COVID-19

Kindly note that the South African National Coronavirus Command Council has announced a nation-wide lockdown for 21 days with effect from midnight on Thursday the 26th of March. All SAVCA employees will therefore continue to abide by SAVCA's work-from-home policy allowing for virtual meetings only, for the duration of the lockdown.

SAVCA remains operational and committed to its members and the broader Southern African economy. In addition to our weekly webinars, SAVCA has also created a dedicated COVID-19 resource page, an industry WhatsApp broadcast group and discussion board aimed at providing support to SAVCA members and friends.

Please note that our phone lines remain active. Feel free to continue engaging with us telephonically, via email and via virtual meeting platforms.

To join our WhatsApp broadcast group and / or discussion board, add +27 76 632 7005 to your phone contacts and WhatsApp us your Name, Surname and Company Name. We hope that you, your loved ones and teams are safe and healthy during this uncertain time.

Funding Available

SMME Profile

Type of Relief

Name of Fund

Application Process

SMMEs

  • <R25m turnover.
  • In good standing as at 29 Feb 2020.
  • Trading for min 2 years.
  • Impacted by Covid-19.
  • An interest-free, 5-year loan to the business entity
  • Exclusively for the purpose of paying permanent employees.
  • Repayable at the end of the term.
  • Proceeds of the loans will be paid directly into the accounts of the participating employees.
  • Employees are not liable for repayment of this loan.
  • Funding available: R750 weekly wage per employee for 15 weeks = R11 250 per employee.
  • No limit to the number of employees per business

South African Future Trust (SAFT)

Administered by Oppenheimer Generations

Total fund: R1bn

Standard Bank, Nedbank, FNB and Absa to manage applications and weekly payment.

More information:
https://opp-gen.com/saft

Existing business negatively impacted by COVID-19.
Must be:

  • CIPC-registered companies
  • 100%-owned by SA citizens
  • 70% of the employees are SA citizens
  • Registered with SARS; tax compliant
  • UIF compliant
  • Loan funding @ Prime-5%:
  • Working capital: Stock, bridging finance
  • Purchase order finance
  • Capital requirement finance

Debt Relief Finance Scheme

Administered by Department of Small Business

Total fund: R200m

Register your business on the small-business database: https://smmesa.gov.za/

Then complete an application form and upload supporting docs.

Contact debtrelief@seda.org.za for assistance with micro-enterprises.

 

  • Tourism and hospitality industry
  • CIPC-registered
  • In existence >1 year with t/ over ≤R2.5m pa
  • Tax clearance
  • UIF-registered and proof of min wage compliance.

Funding available to SMEs in the tourism and hospitality sector, who are under particular stress due to the new travel restrictions.

Tourism Relief Funding

Administered by Department of Tourism

Total fund: 200m

Contact: Ms Hlengiwe Nhlabathi: hnhlabathi@tourism.gov.za

  • Companies that manufacture and provide essential supplies
  • Have been existence > 1 year.
  • Valid contract/purchase order or letter of intent.
  • Companies with BBBEE Level 4 will be encouraged.
  • MCEP funding can be standalone or blended with IDC.
  • Limited to R30 million per applicant in total.
  • Priced at a fixed rate of 2.5% per annum.
  • Maximum term is 48 months, including moratorium.
  • First drawdown must occur within one month from approval date.
  • Raising and commitment fees are excluded.
  • All other standard

MCEP Covid-19 Programme

Administered by Industrial Development Corporation

Funding available: R300m

Submit documents to callcenter@idc.co.za

Sports, Arts and Culture

Cancelled events, digital solutions and a wide array of projects

Government Sector Relief Funding

R150 million

  • Essential supplies: Companies with mnfr track record.
  • Experience to import at scale.
  • Accredited supplier with contract or purchase order or corporate guarantee.
  • Short-term loan.
  • Revolving credit facility.
  • Guarantees to banks for banking facilities, imports, ordering requirement.
  • IDC loan and trade finance facilities: P + 1% pa.
  • Guarantees: 2% pa.

IDC Covid-19 Essential Supplies Intervention

Administered by Industrial Development Corporation

Funding available: R500m

Submit documents to callcentre@idc.co.za; or contact Mr Gerrit Claassen at 011 269 3482; or Mr Rishel at 011 269 3261 for more info

 

  • Companies that manufacture and provide essential supplies
  • Have been existence > 1 year.
  • Valid contract/purchase order or letter of intent.
  • Companies with BBBEE Level 4 will be encouraged.
  • MCEP funding can be standalone or blended with IDC.
  • Limited to R30 million per applicant in total.
  • Priced at a fixed rate of 2.5% per annum.
  • Maximum term is 48 months, including moratorium.
  • First drawdown must occur within one month from approval date.
  • Raising and commitment fees are excluded.
  • All other standard fees are applicable.

MCEP Covid-19 Programme

Administered by Industrial Development Corporation

Funding available: R300m

Submit documents to callcenter@idc.co.za

Women and Youth

  • Working capital, stock, bridging finance, order finance & equipment finance
  • Amount based on business needs, interest rate of prime -5%

SME Debt Relief Fund

Agriculture

Agriculture support and relief

Government Sector Relief Funding

R1.5 billion

SMEs

  • Salary support for SMEs <R25 million annual revenue
  • Must be under stress directly due to Covid-19 outbreak and in strong financial position prior to 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.

SA Future Trust

SMMEs

  • Salary support for SMEs <R25 million annual revenue
  • Must be under stress directly due to Covid-19 outbreak and in strong financial position prior to 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.

SA Future Trust

Standard Bank, Nedbank, FNB and Absa to manage applications and weekly payment.

More information:
https://opp-gen.com/saft

 

We are cognisant that the demand for funding in the market is likely to outweigh the available government and private sector funding initiatives, so we would also encourage all businesses to consider alternative measures to help to address the current liquidity / solvency crisis they are facing as a result of the COVID-19 pandemic. There are number of other types of assistance which may be relevant to your current cashflow and solvency pressures where our members could possibly support you.

If you have not already registered, please refer to SAVCA's SMME Assistance initiative (https://covid-19.savca.co.za/) for assistance implementing alternative measures during the COVID-19 pandemic.

Funding List
Taxation relief and UIF
Other
Other

1. IDC Interventions in Response to COVID-19

The IDC has also provided funding to:

National Empowerment Fund
Funding for Black SME's (>50% black shareholding) for up to R10m with a 1 year repayment holiday. 
https://www.nefcorp.co.za/covid-19-business-funding/

Small Enterprise Funding Agency (SEFA) – SMME's Debt Relief Finance Scheme
·  The business must have been registered with CIPC by at least 28 February 2020;
·  Company must be 100% owned by South African Citizens;
·  Employees must be 70% South Africans;
·  Priority will be given to businesses owned by Women, Youth and People with Disabilities;
·  Be registered and compliant with SARS and UIF
https://www.mybindu.org.za/debt-relief-finance-scheme

Media briefing by minister TW Nxesi at Dirco Pretoria

2. The Innovation Bridge Portal is an online platform that aims to link innovators with commercialization partners, funding partners, and other relevant innovation players in the ecosystem.

https://www.innovationbridge.info/
email: ibportal@innovationbridge.info

 

Media