More than R25,000,000,000.00 is made available every year to companies and small business across South Africa through various methods such as government grants, incentives and loans. Some of these funds are not entirely allocated.
Most business do not know how to access these funds or are not fully aware of the required criteria in order for them to access these funds. These funds can be used throughout all stages of a business, whether you are looking to start a new business, whether you are looking to grow an existing business or acquire a new business altogether, there is a viable route that entrepreneurs can embark on to source funding to finance their venture.
Before you can apply for funding, you need to ensure that your business idea/plan is viable and profitable. Once you have established the viability of your business plan or idea you need to establish the nature of your business and why you are looking for funding. This will help you better understand where to look for funding and what processes you will need to follow in order to have access to those funds.
Besides commercial banks and private equity funders, there are a number of government agencies that provide government loans and grant programs. The difference between a government loan and a government grant is that you are not liable to pay back a government grant whereas a loan requires you to pay back the loan amount including interest(Usually at a reasonable rate compared to private financiers). Although you are not required to pay back a government grant, your business needs to be aligned with the government’s development initiatives.
When applying for a government loan it is important to see which loans you qualify for based on the nature and sector of your business. If you qualify for more than one loan then you will need to your homework to determine which loan will be best suited for your business.
We will publish a series of routes and government institutions that businesses can take to apply for funding.