IS THERE ANY FUNDING AVAILABLE FOR BLACK OWNED BUSINESSES THAT ARE INVOLVED IN SUPPLYING PRIORITY PRODUCTS?

Home » Business Support » IS THERE ANY FUNDING AVAILABLE FOR BLACK OWNED BUSINESSES THAT ARE INVOLVED IN SUPPLYING PRIORITY PRODUCTS?
}

Published: April 17, 2020

Yes.

In partnership with the Department of Trade, Industry and Competition (the dtic) the National Empowerment Fund (NEF) will facilitate funding for black entrepreneurs to manufacture and supply a range identified priority products.

Funding details:

  • R200 million has been set aside under the COVID-19 Black Business Fund as a blended facility for SMEs that manufacture and supply Identified Priority Products to access concessionary loan funding.
  • Salient Features of the Fund:
  • Limited to R10 million per applicant for working capital, machinery and equipment;
  • Up to 12 months payment moratorium at 0% fixed interest rate;
  • After 12 months a fixed interest rate of 2,5% will apply;
  • Maximum term is 60 months, including moratorium, and
  • First drawdown must occur within 1 month from approval date.

 

Funding Criteria:

  • Be a registered legal entity in South Africa in terms of the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 or the Co-operatives Act, 2005.
  • Be a taxpayer in good standing with a valid tax clearance certificate at assessment as well as before the loan is disbursed.
  • Be a current and registered supplier with retailers and other institutions in good standing or have a purchase order/ contract/ letter of intent.
  • Require working capital or funds to purchase machinery and equipment.
  • The fund WILL NOT service any pre-existing debt or help settle monies owed.
  • Have greater than fifty percent (>50%) Black shareholding and management control. Must be directly involved in the day-to-day running of the operation and must have requisite expertise in the sector. Owned by black South Africans as defined by the Broad-Based Black Economic Empowerment (B-BBEE) Act.
  • In line with the NEF’s transformation mandate, preference will be given to applications that demonstrate meaningful black women ownership, management and control.
  • Have a project with a minimum requirement of R500 000 in working capital, machinery and equipment.
  • Must result in retaining or increasing direct jobs.
  • Submission of all relevant documents for commercially viable applications.

 

Funds identified priority products:

  • Disposable plastic gloves and face masks
  • PCR test kits for coronavirus
  • Disinfectants and alcohol-based wipes
  • Medical protective clothing and overshoes
  • Hospital linen and clothing
  • Protective goggles and protective hoods/ face shields
  • Plastic moulding and bottling /packing
  • Hand sanitizer and soap
  • Detergents / Cleaning products
  • Disposable aprons and cups
  • Dispensers (water, sanitsers and soap)
  • Protective respirators
  • Toilet paper
  • Steel beds for hospitals and clinics
  • Mattresses and /or sponge
  • Milk
  • Fruits – oranges, lemons, naartjies
  • Eggs
  • Vegetables: Yellow veggies, potatoes/ sweet potatoes, cabbages, spinach, morogo, tomatoes, beetroot, corn.
  • Maize meal,
  • flour,
  • yeast,
  • samp,
  • beans,
  • cooking oil,
  • fish and canned food,
  • margarine and bread spread,
  • chicken,
  • baby food,

 

Required Documentation:

Constitutional documents

  • Declaration on BEE status and size of business.
  • NEF application form (accessible on NEF website: nefcorp.co.za).
  • Summary of production in the last 3 months.
  • Copy of the historical financial statements (up to 3 years if available).
  • Signed copy of the contract, purchase order or letter of intent from the applicant’s client/s.
  • Financial forecast for the duration of the contract, order, or letter of intent. The forecast should include income statement, cash flow statement and balance sheet for the duration of the funding.
  • Additional information that would be necessary to enhance the application may be requested by the NEF as and when deemed necessary.

 

Application Process

Application form available here.

For more information, please visit www.nefcorp.co.za covidfund@nefcorp.co.za

Call 011 305-8080

The NEF, which to date has approved funding in excess of R10 billion for black entrepreneurs across all sectors of the economy including healthcare and manufacturing, has dedicated teams of seasoned investment professionals to help expedite approval for eligible black entrepreneurs and to ensure a total 2 weeks from application to disbursement, following receipt of all relevant documents for commercially viable applications. Applicants may reach the NEF on covidfund@nefcorp.co.za and on 011 305-8080 for this emergency funding.

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