What is the Department of Small Business Development Debt Relief Scheme, and how do I access it?

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Published: April 3, 2020

Updated 26 May 2020

NOTE: On 22 May 2020 the DSBD announced the closure of Window -1 of the SMME Debt Relief Financing Scheme with effect from Saturday, 23 May 2020. The DSBD indicated that it will publish the names of the SMMEs funded during Window-1 on all its websites as from Friday, 29 May 2020 and the demographic spread include Rand values per demographic spread. For further information, please click here.

The DSBD has undertaken to communicate shortly regarding Schemes to support small businesses that are going back to business and an assessment will commence with the ones that have already applied for relief, except on the scheme targeted for informal and micro-businesses.

 


 

The Department of Small Business Development’s (DSBD) Debt Relief Fund is aimed at providing relief on existing debts and repayments, to assist SMMEs during the period of the COVID-19 State of Disaster. For SMMEs to be eligible for assistance under the Debt Relief Fund, the applicant must demonstrate a direct link of the impact or potential impact of COVID-19 on the business operations.

 

Objective: To benefit SMMEs that are negatively affected, directly or indirectly, due to the COVID-19 pandemic.

 

The aim of the Scheme was to assist SMMEs with working capital during the period when economic activity was negatively affected due to the Covid-19 national disaster. The elements of working capital covered through the Scheme were:

  • Payroll assistance – assists employers whose employees do not qualify for UIF Relief, on condition that those employers register their employees with UIF.
  • Rental assistance (facility or equipment) – assists businesses to pay their rental obligations for either working tools and facilities/ business premises. In case, facilities rentals – there is potential for landlords to double dip from banks rescheduling of mortgage repayments whilst collecting rent from their tenants; and
  • Utilities– to assist with municipal bills.

 

Qualifying Criteria

  • Businesses which are negatively affected due to the COVID-19 pandemic;
  • The business must have been registered with CIPC by at least 28 February 2020;
  • Company must be 100% owned by South African Citizens;
  • Employees must be 70% South Africans;
  • Priority will be given to businesses owned by Women, Youth and People with Disabilities;
  • Be registered and compliant with SARS and UIF;
  • Seda will assist micro-enterprises to comply and request for assistance must be emailed to debtrelief@seda.org.za;
  • Whereas small and medium enterprises must ensure own compliance;
  • Register on the National SMME Database

 

 

Funding Requirements:

  • Proof that the business is negatively affected by COVID-19 pandemic;
  • Complete the simplified online application platform;
  • Company Statutory Documents;
  • FICA documents (e.g. Municipal accounts, letter from traditional authority);
  • Certified ID Copies of Directors;
  • 3 months Bank Statements;
  • Latest Annual Financial Statements or Latest Management Accounts not older than three months from date of application – where applicable;
  • Business Profile;
  • 6 months Cash Flow Projections – where applicable;
  • Copy of Lease Agreement or Proof ownership if applying for rental relief;
  • If applying for payroll relief, details of employees – as registered with UIF and including banking details – will be required as payroll payments will be made directly to employees;
  • SMME employers who are not compliant with UIF must register before applying for relief;
  • Facility Statements of Other Funders;
  • Detail breakdown on application of funds including salaries, rent etc.

 

 

Application Process:

  • Register Only SMMEs that are registered on the database will be considered.
  • Complete online Application Form;
  • Upload Required Supporting Documents.

Please click on this link to access COVID-19 SMME Relief Application form.

Guidelines for Application: Debt Relief Finance Scheme:

Please click here and here for further information.

Please click here for further information regarding contact details for SMMEs requiring COVID-19 related support.

SMMEs are encouraged to make use of the alternative email at info@dsbd.gov.za or call the Hotline number 0860 663 7867

 

 

 

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