Is the past few week South Africa went through an unprecedented event of social unrest in the form of protests and rioting since the dawn of our democracy. The protests and rioting mainly affected the KwaZulu Natal and Gauteng provinces.
The South Africa Property Owners Association and Business Leadership South African estimated the costs of the protests and rioting as follows:
- R1.5 billion in stock has been lost.
- Damage to property and equipment R15 billion.
- More than 800 retail stores looted and 100 were completely burnt.
- 50 000 informal traders, 40 000 businesses and 150 000 jobs are current at risk.
The department of small business development, small enterprise development agency (SEDA) and small enterprise finance agency (SEFA) have now established a business recovery package programme with the intended purpose to curb job loses as well as business closure.
The Business Recovery Support package focuses on the following:
- Uninsured small enterprises impacted negatively by the unrest predominantly in KwaZulu Natal and Gauteng Provinces.
- Small enterprises which require funding for working capital (including stock, equipment, delivery vehicles, furniture & fittings, etc).
Financial support programme is as follows:
- Blended finance which is a combination of a grant (60%) and a loan (40%).
- Interest rate on the loan component is limited to 5%.
- Initial payment moratorium of up to 6 months.
- Repayment period of a maximum of 60 months.
- Maximum funding accessible per entity (enterprise) is R2million.
- The small enterprise must be negatively affected by the unrest that took place in July 2021 (SAPS case number and police statement must be submitted).
- Be a registered legal entity in South Africa (CIPC).
- Be a 100% owned by South African citizens.
- Have been in operation as at 30 June 2021 (Bank statements to prove operations)
- Be registered and compliant with the South African Revenue Service.
- Be registered on the National SMME Database – https://smmesa.gov.za
- Preference will be given to businesses in KwaZulu Natal and Gauteng.
- Affidavit confirming that the business is not insured (the conditional grant provided in the scheme will be converted into a loan should the business benefit from insurance post approval).
- Informal businesses are excluded since there is a dedicated support package for them (Informal Traders Support Package).
Enterprises excluded from the programme
- Labour brokers.
- Manufacturing and selling of ammunition.
- Tobacco, Liquor, Gambling and sex trade.
- Non-profit organisations.
- Political organisations.
- Persons under debt review.
- Un-rehabilitated insolvent shareholders and/or directors of applying entities.
- Speculative property development.
All qualifying enterprises can visit https://smmesa.gov.za to register.