Business in trouble due to Covid-19? Financial relief is available

Many businesses are facing financial woes due to the Covid-19 pandemic coupled with the 35 day lockdown.

As most businesses are closed to trade, excluding essential services, business owners are facing challenges to keep afloat and to pay staff.

However, measures are in place to assist businesses. See below for some relief measures.

Unemployment Insurance Fund (UIF)

To date, the UIF has received just over 55 268 applications from employers representing about 1 601 767 employees. In total, the UIF has over 1 800 000 employers registered on its database representing more than 8 million workers.

Of the applications received, the UIF has processed 37 673 employer applications which means that 606 462 employees will receive their benefit.

To date, some R1.1-billion has been paid.

ALSO READ: Sassa offers relief to temporary disability grant recipients during Covid-19 lockdown

“The UIF is working around the clock to meet the extraordinary volumes of requests for assistance presented by the Covid-19 pandemic. The Covid-19 benefit scheme will provide much needed relief to employees who have been laid off work or unable to earn an income due to Covid-19,” said Employment and Labour Minister Thulas Nxesi.

As part of its response to the Covid-19 pandemic, the department issued a directive for relief to be provided to contributors who have lost income or required to take annual leave as a result of the coronavirus pandemic.

Following the directive, the minister called on employers who are registered with the fund to apply for the Covid-19 benefits through the Temporary Employer/Employee Relief Scheme (TERS) on behalf of their employees.

Besides the Covid-19 TERS benefits, the department continues to pay normal benefits.

To this end, people who have already been approved to claim do not need to phone or apply online. The continuation benefits will be paid at specified dates.

As part of being more responsive to claimants, the UIF call centre – which initially had 75 agents – has increased its capacity and now has 200 agents

Employers can apply via www.ufiling.co.za or contact the UIF on 0800 030 007

Youth Micro Enterprises Relief Fund (YMERF)

The National Youth Development Agency (NYDA) has opened the Youth Micro Enterprises Relief Fund (YMERF) aimed at assisting youth enterprises who might not qualify for other funds.

This fund will respond to challenges facing youth owned businesses such as inability to pay employees, lack of income, including waiting periods for other funding mechanisms.

Funding will be capped at R10 000 for every qualifying business.

More details about the NYDA Youth Micro Enterprise Relief Fund are available on www.nyda.gov.za

Small, Medium and Macro Enterprises (SMMEs)

The Department of of Small Business Development (DSBD) advises that the Small, Medium and Macro Enterprises portal does not constitute application for funding. Once you have uploaded your details you will receive an automatic SMS with your reference number. You will use this reference number to apply for various funding schemes.

Over 81 000 Covid-19-hit SMMEs have already registered.

“We want to clarify to SMMEs out there that registering on the database does not translate to you applying. We want to ascertain that you are indeed an operating business and not a shelf company,” said DSBD Minister Khumbudzo Ntshavheni.

This was to eliminate the possibilities of system abuse.

To register your business  CLICK HERE

National Student Financial Aid Scheme (NSFAS)

The National Student Financial Aid Scheme (NSFAS) activated a business continuity plan to facilitate uninterrupted funding to students, resolution of student applications queries, processing of appeals and general assistance to institutions with NSFAS administration.

Ensuring that students receive their allowances during this time of general hardship and uncertainty is essential – students are entitled to their allowances in order to sustain themselves, continue with academic activities online, as well as to pay for learning materials.

NSFAS is accessible on these platforms from 8.30am to 5pm, Monday to Friday:

Email: info@nsfas.org.za
Facebook: National Student Financial Aid Scheme
Twitter: myNSFAS
Instagram: myNSFAS
NSFAS Connect: www.nsfas.org.za and log into your myNSFAS account

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