Whilst 2020 has been a tough year for South African businesses and entrepreneurs, it’s great to see that there are many institutions offering business funding solutions still. Below is a list of 20 South African Institutions Currently Offering Business Funding In 2020.
1.SEFA
Established in 2012, the Small Enterprise Finance Agency (SEFA) helps start-ups and small businesses. They will either fund grants or loans or help entrepreneurs access funding from other sources. SEFA services are designed to help micro, small and medium-sized business enterprises. Co-operatives and survivalist enterprises that need help to grow are especially encouraged to seek assistance.
Loans from SEFA can range from as little as R500 up to R3 million, with the loans paid directly to owners. This direct payment is important in a business sector that is often not part of the traditional banking system.
Micro, small and medium enterprises and co-operatives with a viable business plan can apply for a loan. SEFA staff will evaluate the application to determine the viability of the loan, and at what rate it can be repaid without damaging the company.
E-mail: [email protected](link sends e-mail)
Call centre: 086 000 7332
Website: http://www.sefa.org.za/
2.NEF
If you are directly involved in your business and need funding between R250 000 and R75 million, the National Empowerment Fund (NEF) may be able to help. It is mandated to offer financial and non-financial assistance to black-owned businesses.
Funding decisions are guided by the Industrial Policy Action Plan across a variety of sectors. Start-ups can qualify for funding up to R10 million. The NEF also offers assistance for rural and community development, franchise finance and new industry development.
E-mail: [email protected](link sends e-mail)
Call centre: 0861 843 633
Website: www.nefcorp.co.za(link is external) / www.nefbusinessplanner.co.za(link is external)
3.SEDA
The Small Enterprise Development Agency – an initiative of the Department of Trade and Industry – is available to give guidelines and training to entrepreneurs and assist with the processes needed to access funds, such as the drawing up of business plans.
E-mail: [email protected](link sends e-mail)
Call centre: 0860 103 703
Website: www.seda.org.za(link is external)
How to access services
Eligibility for assistance is based on:
- A completed application form and business plan by owner or manager
- Ability to repay loan
- Business must be registered
- The business must operate in South Africa
- Assessment of application will be done at a regional office closest to the business.
After due diligence is done, a committee decides on approval.
Upon approval, before funds are transferred, applicants will be required to sign a contract acknowledging debt.
4.IDC
IDC funding is available to those who have an existing business or wish to start a new one; those that have the visions of job creation along with serving previously disadvantaged communities.
The IDC achieves its goals by providing finance for industrial projects, promoting partnerships between and across industries within SA and internationally. It focuses on projects that finance and facilitate, that lead to the creation and innovation of new industries. It also focuses on diverse expertise to drive growth in priority sectors and to take on higher-risk funding projects.
The IDC supports B-BBEE and actively boosts and promotes black-owned and managed business along with those with employment equity. It aims at developing the skills of black employees and business owners, by supporting local, regional, provincial and national government projects.
Contact the IDC for funding
- For more information on any of the funds visit www.idc.co.za, click on “Online Funding” and follow the prompts.
- You can also phone the IDC call centre on 0860 69 38 88
- Or email [email protected].
5. NYDA Voucher Programme
The Voucher Programme is a business support programme aimed at assisting young entrepreneurs by providing one-on-one business development support to access quality business development services through NYDA approved business consultancy service providers thereby enhancing their participation in the mainstream economy.
Young entrepreneurs access this service through vouchers, which range from R6 600.00 to R19 800.00. There is no contribution fee required for young entrepreneurs to participate in the programme. Each registered entity, is entitled to a maximum of two (2) vouchers as per business development phase.
WHAT IS THE PROCESS FOR VOUCHER APPLICATIONS?
- The applicant obtains and complete an application form from www.nyda.gov.za
- Visit the nearest NYDA branch in their areas listed on the back page of this leaflet
- She/he submits the application form to an NYDA branch
- An assessment is conducted to assess the application and his/her business against the service they are applying for.
- If approved, the applicant needs to select an accredited service provider from the service provider directory (not supplier directory).
- On receipt of the voucher, the selected service provider provides the service and the applicant endorses the voucher on completion of the project.
- The service provider then submits the final product to the NYDA for payment.
6.Enablis Acceleration Fund
The Enablis Acceleration Fund is a partnership between Enablis Financial Corporation SA (Pty) Ltd and Khula Enterprise Finance Limited. The main objective of the fund is to improve access to SME early stage funding, while reaching out and supporting SMEs that are developing in remote or rural areas with a view to creating new sustainable jobs that alleviate poverty and reduce unemployment. This acceleration fund offers equity and debt instruments over loan periods no longer than 60 months.
To become a member visit the Join Enablis HERE.
7. Business Partners Women in Business Fund
This organization’s mandate is focused at increasing access to finance for female entrepreneur. The Business Partners Women in Business Fund seeks to afford South African women a fair and equal opportunity to start, expand or purchase an existing business. The Fund will offer finance between the value of R500 000 and R50 million per investment over a five year financing period. All female owned businesses (at least 50%) that are commercially viable with female owners active in the business will be considered for financing.
CLICK HERE TO APPLY.
8. Isivande Women’s Fund (IWF)
In 2008, government partnered with Old Mutual’s Masisizane Fund to set up the R100 million Isivande Women’s Fund which invests directly in women enterprises by offering loans at lower interest rates, as well as offering non-financial support.
Isivande Women’s Fund (IWF) is an exclusive fund that targets black women at the bottom of the economic ladder. The fund is managed by the Industrial Development Corporation (IDC) on behalf of the Department of Trade and Industry through Identity Development Fund (IDF) managers.
CLICK HERE TO APPLY
9. African Women’s Development Fund
The African Women’s Development Fund (AWDF) is a grant-making foundation that supports local, national and regional women’s organisations working towards the empowerment of African women and the promotion and realisation of their rights. The fund offers grant funding of up to $50 000.
CLICK HERE TO APPLY.
10. RMB GROWTH CAPITAL SOLUTIONS
Our Growth Capital team provides advisory, structuring, investing and funding for proven high-growth tech-enabled companies in the early stages of growth, whereas a typical Private Equity company would invest predominantly in established, late-stage, high earning businesse
Growth Capital Solutions offers services to entrepreneurial businesses with these characteristics:
- Early stage of growth
- Revenues that are growing rapidly (more than 20% growth yoy)
- A technology-enabled business i.e. technology platforms enable the business offering
- Positive cash flows, are profitable or are approaching profitability
- The business is scalable – a proven business model with recurring and predictable revenue streams
- Strong founders with a track record of delivering on their business plans
- A sustainable competitive advantage – the founders have built a leading position or are disrupting a particular sector or service
- Investment returns that are primarily a function of growth, not leverage
Contact
Think Precinct
1 Merchant Place
Cnr Fredman Drive & Rivonia Road
Sandton
2196
11. VodaLend
Let us fund anything your business needs Whether you need to fund moving into a bigger office, buy equipment or property or just to get the cash flow you need to act quickly, we can make it happen. Apply now and get the cash you need within 24 hours.
Link: https://www.vodacombusiness.co.za/business/solutions/fund-my-business?cid=PS_fnnc_12_snnp_9807
12. South African film and television production incentive (SA Film)
To support the local film industry and to contribute towards employment opportunities in South Africa.
Benefits:
- The rebate is calculated as 35% of QSAPE.
- An additional 5% of QSAPE is provided for productions hiring at least 30% of black South African citizens as head of departments (HODs) and procuring at least 30% of QSAPE from 51% South African black-owned entities which have been operating for at least a period of one year; with a cap of R50 million per project.
Eligibility criteria:
- Productions must have a minimum QSAPE of R1.5 million for all qualifying production formats and a minimum of R500 000 for documentaries
- At least 14 calendar days and 60% of principal photography must be filmed in South Africa. This requirement may be waived for productions with a minimum QSAPE of R50 million.
- A minimum of 75% of the total production budget (TPE) must be QSAPE.
- The majority of intellectual property must be owned by a South African citizen(s) and the copyright must be registered with the Companies and Intellectual Property Commission (CIPC).
- The Director must be a South African citizen.
- The top writer and producer credits must include South African citizens either exclusive or shared collaboration credits.
- The majority of the five highest-paid performers must be South African citizens.
- The majority of Heads of Departments (HODs) and key personnel must be South African citizens, with at least 20% of the HODs on core production functions being black South African citizens.
- Secured a minimum of 25% of the total budget.
- The holding company and SPCV must achieve at least a level 3 and level 4 B-BBEE contributor status respectively, in terms of the B-BBEE Codes of Good Practice.
General conditions
- The applicant must procure a minimum of 20% of qualifying goods and services from entities which are 51% black-owned by South African citizens and have been operating for at least one year.
- The applicant must complete and submit an application not early than 45 calendar days prior to the commencement of principal photography
- The applicant must demonstrate that they adhere to an industry specific Code of Professional Standards that includes sexual harassment and health and safety protocols.
- The principal photography must not commence until an approval letter has been received from the dti.
Contacts:
| Eliya Ndou | [email protected] | +27 12 394 1748 |
| Selina Swarahle | [email protected] | +27 12 394 1140 |
| Mpho Mukoma | [email protected] | +27 12 394 1805 |
13. National Youth Development Agency (NYDA) – Grant
The NYDA provides grant finance in the form of micro-finance grants for survivalist youth entrepreneurship and co-operative grants for greater participation of youth in the co-operative sector.
The objective of the grant programme is to provide young entrepreneurs with an opportunity to access both financial and non-financial business development support to establish their survivalist businesses. The programme focuses on youth entrepreneurs who are just coming into existence and are beginning to display signs of future potential but are not yet fully developed.
The grant finance starts from R1 000 to a maximum of R200 000 for any individual or youth co-operative. For agriculture and technology-related projects, the maximum threshold is R250 000.
Young people interested in accessing the grant programme will have to commit to participating in the NYDA mentorship and voucher programme for a minimum of two years.
The types of businesses that will be assisted through the grant programme include but are not limited to:
- Motor mechanics/panel beaters.
- Electricians.
- Plumbers.
- Domestic appliance repair services.
- Beauticians.
- Hairdressers.
- Cleaning companies.
- Small-scale recycling companies.
- Street vendors.
- Car washes.
Eligibility criteria
- South African citizens, under 35.
- Previously disadvantaged, start-up or emerging entrepreneurs.
- Businesses that are not yet profitable.
- Applying businesses must be prepared to commit to the two-year NYDA mentorship and voucher programme.
- The main applicant must be involved in the day-to-day operations of the business.
Application process
Contact your nearest NYDA branch to obtain the application form or call them on 0800 52 52 52.
14.Department of Agriculture, Forestry and Fisheries – AgriBEE Fund
The AgriBEE Fund is a support programme initiated by the Department of Agriculture, Forestry and Fisheries. The purpose of the Fund is to promote the entry and participation of black people in the entire agricultural, forestry and fisheries value chain.
The fund has the following objectives:
- The acquisition of equity deals (shares) in viable and sustainable enterprises.
- The promotion of Enterprise Development initiatives through value-adds and agro-processing.
- To ensure that there is an increased number of black people who own, manage and control sustainable enterprises, and improved participation by designated groups as stated in the respective sector codes, namely, black women, black youth, black farm workers and black people living with disabilities.
As a general rule, the maximum grant that you can apply for is R5m. The DAFF and/or the Land Bank may exercise their discretion and consider and approve applications of more than R5m. Twenty percent (20%) instead of 10% own contribution is required for such cases.
Funding exclusions:
- Purchasing of farms and farming/fishing/forestry infrastructure at primary level (the Fund supports post-production activities such as agro-processing/value-addition).
- 100% acquisition of a business at initial investment by the applicant.
- Investment in farms under land claim.
- Applicants who are not directly involved in the sector in terms of farming, fishing and forestry activities.
- Government employees, Land Bank employees and politicians will not be eligible for the Fund.
Eligibility criteria
- You are either an Exempted Micro Enterprise (EME) or a Qualifying Small Enterprise (QSE) in line with the applicable sector codes.
- You are able to contribute a minimum of ten percent (10%).
- The applicant must be black and the project 100% black-owned.
- Your business plan has a clear indication of long-term sustainability.
- You are a South African citizen with valid identity document.
- Your business is a legal entity.
- You are directly involved in the business for which you require investment.
Application process
Prior to completing the Application Form, familiarise yourself with the criteria for funding.
Download business plan guidelines here.
Download the application form here.
Download the provincial contact list here.
15.Development Bank of South Africa (DBSA) – Infrastructure Investment Programme for South Africa (IIPSA)
The Infrastructure Investment Programme for South Africa (IIPSA) is a joint European Union and South African Government initiative, administered by the DBSA. The program seeks to enhance sustainable economic growth and the delivery of key services affecting development in South Africa and in the SADC Region.
SADC projects have to be either trans-border projects involving two or more countries in the SADC region, or a national project with a demonstrable regional impact on one or more countries in the SADC Region.
The IIPSA will, in principle, consider projects or programmes with a minimum capital investment value of R500m or the equivalent in USD/Euro in South Africa and the SADC region.
The range of funding is decided on a project by project basis but can be categorised as follows:
- Direct grants (up to 100%).
- Interest rate subsidies.
- Loan guarantee cost financing and insurance premiums.
Funding is available for projects in the following sectors:
- Energy infrastructure.
- Protection of the environment.
- ICT infrastructure.
- Social services and infrastructure.
Eligibility criteria
Each application will undergo an initial screening to assess suitability in terms of the IIPSA objectives.
All applications will be subjected to the following criteria which they must meet:
- Sector or strategic fit.
- Development impact.
- National/regional priority.
- Institutional capacity.
- Project size.
Application process
Read the application procedure.
Register on their portal.
16. SME Debt Relief Finance Scheme
Administered by Department of Small Business Development.
-Covers working capital, stock, bridging finance, order finance and equipment finance.
-Amount based on business needs, interest rate of prime-5%.
-Business must be 100% South African owned with 70% employees.
-Preference will be given to women and youth.
-Register HERE https://www.smmesa.gov.za/
17.UIF Covid-19 Temporary Relief Scheme
UIF relief fund scheme fund for businesses that need to temporarily lay off staff as a direct result of Covid-19-claims for three months or less.
-The business mst be up to date with UIF payments.
-Employee will be paid according to the income replacement rate sliding.
-Businesses to apply on behalf of employees.
-For application documents email [email protected]
18.NEF Covid-19 Scheme
-Funding for working equipment, machinery to supplye and manufacture a range of medical products.
-R50 000- R10million concessionary loan for black owned businesses with existing retail supplier relationships.Up to 60 months repayment with 0% interest the first year.
-Applications open through NEF website www.nefcorp.co.za
19.IDC Working Capital Support
-Provision of short term working capitals for The Mining and Minerals, Agriculture and Agro-processing and Automotive Sector.
More information available at www.idc.co.za
20.SME Growth and Resilience Fund
-Working capital (direct costs) , stock , bridging finance , purchase order finance and capital equipment finance for SMMEs that manufacture locally or supply products in demand due to the pandemic.
-Loan facilities provided at -5%
– More information and applications available at https://www.smmesa.gov.za/
