FEDHASA partners with The Sukuma Fund to make rental relief fund available for qualifying independent restaurant members
- The Sukuma Fund makes R100 million available for rental and cashflow relief for qualifying FEDHASA-registered restaurateurs
- Loan offers favourable repayment terms with no repayment obligations or interest incurred for first 12 months
To apply: please complete the form here.
Apply to The Sukuma Fund: Rental Relief for FEDHASA-registered Independent Restaurants
Independent restaurant owners who are FEDHASA members can apply for rental relief and financial aid in the form of an unsecured interest-bearing loan of between R250,000 and R1 million through The Sukuma Fund, administered by Business Partners Limited in partnership with FEDHASA.
The Sukuma Fund has allocated just over R100 million for qualifying businesses, which must:
- Be formally registered
- Operate as an independent restaurant
- Provide evidence of financial solvency and future viability
- Regulatory compliant
- Secure 25% rental relief from landlords
What are the Sukuma Fund Rental Relief Loan terms?
The loan will be structured over 60 months under the following terms:
- No repayment obligations for 12 months
- No interest to be incurred or raised for 12 months
- Interest to be raised at the prime rate (currently 7%) from month 13
- Repayment of the loan to commence from month 13
What can the money be used for?
- To provide cash flow relief to qualifying close corporations, companies and trusts.
- Funds shall be used to cover up to 6 months rental due to landlords, with monthly rental payments being made directly to the landlord, subject to proof of sustainable trade in the previous month.
What documents are required to access the financial aid?
- Management accounts for the period 01 March 2020 until at least 30 November 2020
- 3 months’ bank statements of the business for the period before the 15 December 2020 lockdown to assess operations before the second lockdown
- A rental (premises) statement, not older than 1 month
- The statements for any other credit agreements such as asset finance of trade finance loan agreements as at 30 November 2020
- Motivation and supporting documentation clearly illustrating the financial distress suffered by the SME (restaurant) as a result of the COVID-19 outbreak. The motivation can cover the following information: Reduction in turnover; Erosion of working capital; Inability or difficulty to pay wages and preserve jobs; Inability to pay rent Inability to pay for other overheads; Inability or difficulty in servicing existing debt obligations; or all of the above
- Statement of assets and liabilities for the main business owner
- Copies of identity documents of all directors, shareholders, members, and trustees, as applicable
- Copy of marriage certificate, including ANC contract, divorce certificate or death certificate, where applicable
- Company documents
- Copy of registration certificate
- Copy of memorandum of incorporation
- Copy of the company’s share register
- Close corporation
- Founding statement
- Trust documents (if applicable)
- Copy of the trust deed
- Copy of the Master’s Authority Certificate
- Copy of IDs of all trustees
- Confirmation of bank account details issued by relevant bank
- Letter from the landlord confirming the rental relief offered and the period of the offer (minimum 25% of rent due for corporate landlords and 25% for independent landlords for a minimum period of 6 months)
Is there a grant offered to support formal close corporations, companies, and trusts?
No. The funding will be made in the form of a loan and must be repaid based on the terms stipulated above.
Can I make more than one application if I have more than one restaurant?
Yes. Each business will be assessed on its own merit. Priority will be on supporting as many business owners as possible, however.
Is the loan available to any restaurant owner?
No. Only members of FEDHASA may apply. Should you wish to become a member of FEDHASA, please complete the contact us form here.
How do I apply?
To apply, click on the ‘Apply Now’ button below and complete the form, along with attaching the front page of your annual financial statement and front page of their Management Accounts for 1 March 2020 – 30 Nov 2020. Should the application not include all required detail and documentation, it will be deemed incomplete and will not be processed.
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