Covid-19 Funding Available for South African Businesses

South African businesses are facing unprecedented challenges on the back of the long phase of lockdown and the uncertainty of the future. To help soften the blow of economic repercussions, governments, agencies, and individuals have stepped up efforts to provide financial support to businesses.

Here are some of the government and private funding schemes available to businesses in South Africa:

Government assistance

Industrial Development Corporation (IDC)

The IDC offers two forms of financial relief for vulnerable businesses namely:

IDC Distressed Funding: This funding scheme is for distressed businesses in sectors that are not able to pay their debts or fund their operations. It covers sectors such as heavy and light manufacturing, automotive and transport, agriculture, tourism, mining, clothing, and pharmaceuticals. The type of relief offered includes debt and guarantees and concessionary pricing.

IDC Working Capital Support: The total size of this package is R3,000,000,00 while the upper limit that businesses can apply for is R10 million. The funding is intended for businesses that supply critical goods affected by the pandemic.

Business Growth/Resilience Facility: This fund is administered by the Department of Small Business Development and provides financial assistance of up to R50 000 per entity across all sectors with priority given to businesses owned by disabled, youth, and women.

Debt Relief Finance Scheme: This is a scheme for small and medium businesses that are SARS compliant and have a less than R20m turnover.

Private sector loans

Absa COVID-19 Loan Scheme: The total size of this fund administered by Absa is R200b and can be availed by businesses whose turnover is R300m or less in a year to cover operational costs.

Covid-19 Term Loan Scheme: Administered by banking institutions, this scheme offers a special credit facility to businesses with R300m or less turnover that have a good credit history.

You can view more information on these and more by visiting https://www.finfind.co.za/covid-19 or click on the link that you would like to view below.

 

Banks / Private Sector