Have a struggling small business due to Covid-19? Read this!
Small and medium and micro enterprises (SMMEs) are among the hardest hit by the crisis.
Many small businesses were already reeling from the recession and a volatile exchange rate before the coronavirus hit, according to Sage.
Business Partners, which administers the R1 billion programme, had launched a website for SMMEs to apply for funding, Neasa said.
The Sukuma Relief Programme offers distinct financial aid to formal sole proprietors and close corporations, companies and trusts.
SMMEs that are negatively impacted by the coronavirus can apply at HERE!
Neasa said for formal sole proprietors the fund offered a grant of R25 000 per qualifying business to be used to pay for overheads.
Close corporations, companies and trusts could apply for financial aid in the form of an unsecured interest-bearing loan of between R250 000 and R1 million, coupled with a non-repayable grant of R25 000 per qualifying businesses.
The loan portion would be interest-free for 12 months with no repayment obligations during this period.
To qualify, businesses must provide evidence of financial activity prior to the Covid-19 outbreak; be tax compliant; and abide by the necessary regulations.
“We have made our process simple and fast. You can expect to receive the financial aid within seven working days of your application,” Business Partners said.
The time frame was dependent on a company submitting all the required information.
Business Partners’ managing director, Ben Bierman, said they had been working hard to put guidelines and systems in place to ensure the funding reaches businesses that need it most.
The funding would be made available to smaller businesses in the form of a grant, which meant there would be no repayment obligations.
For larger businesses, there would be a loan component, which would have to be repaid at some point in the future. The initial interest-free period, where no repayment has to be made, would be one year.
Bierman said they hoped the major impact of the coronavirus would have subsided by then.
“Hopefully by that time businesses will return to cash-flow positive and profitability, which will make it possible for them to repay some of the money,” he said.