Standard Bank has partnered with Small Enterprise Finance Agency (SEFA) to helping spaza shops purchase stock through government funding from SEFA approved wholesalers at discounted prices. 
Photo: African News Agency (ANA) Archives
Standard Bank has partnered with Small Enterprise Finance Agency (SEFA) to helping spaza shops purchase stock through government funding from SEFA approved wholesalers at discounted prices. Photo: African News Agency (ANA) Archives

Standard Bank and SEFA partner to help spaza shops during Covid-19

By Dhivana Rajgopaul Time of article published Jun 9, 2020

Share this article:

DURBAN - Standard Bank has partnered with Small Enterprise Finance Agency (SEFA) to helping spaza shops purchase stock through government funding from SEFA approved wholesalers at discounted prices.

This partnership further enforces current efforts by Standard Bank in its commitment to assisting small and medium enterprises.

tandard Bank recognises its role in helping spaza shops as they not only play a critical role in driving the economy, but also in providing essential goods, food and consumables in townships and rural areas, especially in these times of limited movement due to Covid-19.

Qualifying spaza shop owners are now able to go to any Standard Bank branch and get assistance in completing the SEFA application form for funding, this was as of 25 May 2020. 

All frontline Standard Bank employees are equipped to support spaza shop owners who have queries about this offer by directing them to the appropriate places. Once SEFA has approved funding, beneficiaries will receive a call or communication to visit their nearest Standard Bank Branch to collect their Standard Bank card, into which the funds will be deposited.

Beneficiaries will need to produce their Business Permit and ID documents for the collection of their card.

"Enabling businesses with solutions that assist them to continue operation during this time is important as this contributes to the growth of our economy and, in turn, the growth of our continent," said Ethel Nyembe: Head of Small Enterprises at Standard Bank. 

She added, "Regardless of the economic climate, the backbone of businesses that thrive has always been their ability to navigate the ever-changing landscape". 

How the funding works:

1. Qualifying spaza shop owners will get funding (not repayable) paid into a Standard Bank card, in two equal payments

2. The funds are not withdrawable and can only be used to buy stock at SEFA-approved wholesalers

Qualifying criteria:

1. The spaza shop must be managed and operated by an owner who has a valid South African identification document

2. The business must be registered on SmmeSA: https://smmesa.gov.za/

3. The business must hold a municipal permit license to trade. If not, the owner must obtain one before applying for support.

4. The business must be registered with CIPC, SARS and UIF, or be willing to register before support is approved

5. Undertaking to comply with the Consumer and Customer Protection and National Disaster Management Regulations and Directions

6. The owner must be willing to submit monthly management accounts

The bank is also receiving applications for loans under the Covid-19 Loan Scheme for Small and Medium Enterprises announced by President Cyril Ramaphosa in April.

This follows an announcement yesterday from National Treasury that the Scheme is now operational. The Treasury has provided a guarantee of R100 billion to the scheme with the option to increase it to R200 billion if it is necessary and the scheme is successful.

Under the scheme business customers with an annual turnover of less than R300 million will now be able to apply for a Covid-19 Term Loan.

There is certain criteria that small businesses must be to receive the loan including being in good standing as at 29 February 2020 with their Bank and registered with the South African Revenue Service.

BUSINESS REPORT ONLINE

Share this article:

Related Articles