HAS THE IDC PROVIDED RELIEF FUNDING FOR BUSINESSES IN DISTRESS DUE TO THE COVID-19 PANDEMIC?

Home » Business Support » HAS THE IDC PROVIDED RELIEF FUNDING FOR BUSINESSES IN DISTRESS DUE TO THE COVID-19 PANDEMIC?
}

Published: May 14, 2020

Yes, the IDC has provided relief funding for businesses in distress due to the COVID-19 pandemic.

Who it is for?

IDC clients and other businesses operating in sectors within the IDC’s mandate that, as a direct or indirect result of the COVID-19 pandemic, are:

  • Reasonably unlikely to be able to pay all their debt as it becomes due and payable; and
  • Unable to fund their operating activities.

 

Sectors Covered:
  • Agro-processing and agriculture
  • Chemical products and pharmaceuticals
  • Basic and speciality chemicals
  • Clothing and textiles
  • Heavy manufacturing
  • Light manufacturing
  • Media and audiovisuals
  • New industries
  • Tourism
  • Automotive transport and equipment
  • Industrial infrastructure
  • Basic metals and mining

 

What is it?

The IDC is offering assistance for companies that are in distress resulting from the COVID-19 pandemic. Regarding the terms of the facility, these are as follows:

  • Debt and guarantees only (equity on a case-by-case basis)
  • Scheme-related concessionary pricing

 

Why?

The IDC has devised a range of COVID-19 funding interventions aimed at alleviating the impact of the said pandemic on the South African economy.

 

What are the qualifying criteria?
  • Existing IDC clients and new clients in distress as a result of COVID-19. These should operate in sectors within the IDC’s mandate
  • Companies in distress because of the COVID-19 pandemic, not because of mismanagement
  • Companies should demonstrate strong business fundamentals and be considered viable
  • Relief is only for clients impacted by COVID-19 with a sustainable business plan
  • Intervention plans must show the business case recovering within 18 to 24 months
  • There must be evidence that concessionary finance will enable the business to trade out of any short- to the medium-term financial crisis
  • Limited to South African companies and clients
  • Risk must be shared with other funders, not just the IDC
  • Distressed funding cannot be used to fund bonuses or dividends
  • The company’s financial needs must be in excess of assistance from the Unemployment Insurance Fund, the Compensation Fund, the IDC’s funding and any other support schemes, and the IDC’s funding should only be used to fund any shortfall

 

Exclusions:
  • Normal expansions
  • Refinancing of existing facilities
  • Share buy-backs
  • Payment of non-operational expenditure, e.g bonuses.

 

For further information pertaining to this measure, please click here.

Related FAQS

WHAT RELIEF MEASURES HAVE BEEN MADE AVAILABLE FOR ARTS AND CULTURE (INCLUDING FILM, CREATIVE INDUSTRIES, MUSIC AND CULTURE)?


Published:  July 30, 2020 Yes, there are relief measures for the film and creative industries. YES, THERE ARE RELIEF MEASURES FOR THE FILM AND CREATIVE INDUSTRIES. These are the measures: Netflix & SASFED Film And TV Relief Fund ...

HAVE ANY RELIEF MEASURES BEEN PROVIDED/MADE AVAILABLE TO OFF-GRID ENERGY COMPANIES THAT HAVE BEEN AFFECTED BY THE COVID-19 PANDEMIC?


Yes, relief measures have been provided to off-grid energy companies affected by COVID-19.   The information is provided as reflected on Energy Access Relief’s website. Recognising the challenges faced by both existing off-grid...

HAS THE SOUTH AFRICAN RESERVE BANK AND NATIONAL TREASURY IN ASSOCIATION WITH BANKING ASSOCIATION SOUTH AFRICA PROVIDED ANY RELIEF MEASURES OR INTERVENTIONS TO SMALL AND MEDIUM ENTERPRISES AFFECTED BY COVID-19?


Yes the South African Reserve Bank and National Treasury in association with the Banking Association South Africa has provided relief measures for Small and Medium Enterprises affected by COVID-19.   On 29 April, the Banking Association...

HAS THE WESTERN CAPE GOVERNMENT ANNOUNCED ANY PROVINCIAL RELIEF MEASURE FOR THE CULTURAL, CREATIVE AND SPORT SECTORS?


Yes, the Western Cape Government has announced provincial relief measures for the cultural, creative and sports sectors. Recognising the devastating impact that COVID-19 related regulations and the national lockdown have had on the arts, culture...

HAS THE IDC PROVIDED RELIEF FUNDING FOR BUSINESSES IN DISTRESS DUE TO THE COVID-19 PANDEMIC?


Yes, the IDC has provided relief funding for businesses in distress due to the COVID-19 pandemic. Who it is for? IDC clients and other businesses operating in sectors within the IDC’s mandate that, as a direct or indirect result of the...

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.


In order to use this website we use the following technically required cookies
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all Services
Accept all Services