Department provides intervention measures for SMMEs

Khumbudzo Ntshavheni, the minister for small business, recently announced the details of how SMMEs affected by the global pandemic can be assisted.

The press release stated, “(This is for) businesses that are negatively affected, directly or indirectly, due to the coronavirus pandemic, to mitigate against job losses and the expected harsh economic impact, as well as businesses geared to take advantage of supply opportunities resulting from the coronavirus pandemic or shortage of goods in the local market.”

According to the release, the following are the qualifying criteria for the debt-relief finance scheme

• The business must have been registered with CIPC by at least February 28
• The company must be 100 per cent owned by South African citizens
• The employees must be 70 per cent South Africans
• Priority will be given to businesses owned by women, youth and people with disabilities
• It must be registered and compliant with Sars and UIF

• Seda will assist microenterprises to comply and requests for assistance must be emailed to debtrelief@seda.org.za, whereas small and medium enterprises must ensure own compliance
• Must be registered on the national SMME database: smmesa.gov.za
• Submit proof that the business is negatively affected by the Covid-19 pandemic
• Complete the simplified online application platform
• Provide company statutory documents
• Provide Fica documents (eg municipal accounts, letter from traditional authority)

• Submit certified copies of directors’ IDs
• Submit three months’ bank statements
• Provide latest annual financial statements or latest management accounts not older than three months from date of application, where applicable
• Submit a business profile
• Provide six 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
• Detailed breakdown on application of funds, including salaries, rent etc.

The following are qualifying requirement for business-growth/resilience facility

• The business must have been registered with CIPC by at least February 28
• Company must be 100 per cent owned by South African citizens
• Employees must be 70 per cent South Africans
• Priority will be given to businesses owned by women, youth and people with disabilities
• Be registered and compliant with Sars and UIF

• For non-compliant microbusinesses, Seda will assist them to comply and requests for assistance must be sent to: growthfund@seda.org.za
• Registration on the national SMME database: smmesa.gov.za
• Complete the simplified online application form available from www.dsbd.gov.za; www.sefa.org.za; www.seda.org.za
• CIPC registration documents
• Fica documents (eg municipal accounts, letter from traditional authority)

• Copies of directors’/members’ IDs
• Three months’ bank statements
• Latest annual financial statements or management accounts not older than three months from date of application
• Business profile
• Six months’ cash-flow projections, where applicable
• Relevant industry certification, where applicable
• Estimations for funding requested.

Only registered SMMEs on the database will be considered. Unregistered businesses can register at smmesa.gov.za.
An individual can register, complete and upload required supporting documents in an online application on the same website. Applications will be released on Thursday, April 2.
Furthermore, the department published requests for proposals (RFP) to existing South African-owned, registered and tax-compliant SMMEs, that are in the medical supply and non-food field. The RFPs are aimed at getting information on SMMEs that have the capability to participate in the manufacture and supply of goods that are needed towards the management of the impact of the Covid-19 pandemic.

The RFPs are
• DSBD/Covid-19: 25/2019/2020: Critical non-food essentials
• DSBD/Covid-19: 26/2019/2020: Hygiene, medical products manufactured or related services.

The documents can be found on the following websites
• www.dsbd.gov.za
• www.sefa.org.za
• www.seda.org.za
• www.gcis.gov.za
• www.mybindu.org.za.

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