A. GOVERNMENT INITIATIVES
UNEMPLOYMENT INSURANCE FUND (UIF)
The Unemployment Insurance Fund has announced that it will assist workers affected by COVID-19 through existing benefits “including Illness, Reduced Work Time, Unemployment and Temporary Employer/Employee Relief Scheme (TERS) benefits.” Further to this The Unemployment Insurance Commissioner, has developed a “Corona Virus Temporary Employer-Employee Relief Scheme (COVID19TERS) to contribute to the containment of the Corona Virus and its impact.”
Those in need of financial assistance from the UIF can access information through the following channels:
Employer/s through the dedicated mailbox: firstname.lastname@example.org.
COVID–19 TERS Benefit enquiries hotline number for: 012 337 1997
TAX RELIEF – SOUTH AFRICAN REVENUE SERVICE (SARS)
Please also login to the SARS website for more information on the Tax Relief options being made available to SMEs.
BUSINESS GROWTH AND RESILIENCE FUND
SMMEs (as defined by the sector) that manufacture locally or supply items which are in demand as a result of the pandemic can access loan facilities at prime – 5% pa.
Those in need of funding for working capital, stock, bridging finance, purchase order finance and capital equipment finance can also apply at www.smmesa.gov.za.
SMME DEBT RELIEF FUND
An amount of R500-million has been made available through the Debt Relief Fund. The fund which will assist South African small businesses that are able to illustrate impact, or potential impact of the virus cover existing debts and repayments. Go to www.smmesa.gov.za for more information.
SECTOR RELIEF FUNDING
The following government departments have also announced their intentions to assist their respective sectors:
Sports, Arts & Culture:
R150 million Fund. More details & applications available on their website: www.dac.gov.za
R1.2 billion Fund for agricultural support & relief. More information available on their website www.daff.gov.za
Hospitality & Tourism:
R200 million Fund for the tourism and hospitality sector businesses with annual turnover of less than R2.5 million. Go to www.tourism.gov.za for more information.
INDUSTRIAL DEVELOPMENT CORPORATION (IDC) COVID-19 ESSENTIAL SUPPLIES INTERVENTION
IDC is offering access to short terms loans for once off- contracts and import funding along with soft loans for the acquisition and/or the urgent manufacturing of supplies considered essential in combating the Covid-19 pandemic. This is on condition that a contract order is in place or proof of demand can be provided. Please login to www.idc.co.za for more information.
IDC WORKING CAPITAL SUPPORT
IDC can also be contacted for assistance with short-term working capital for the Mining & Minerals, Agriculture & Agro-processing, and Automotive sectors. Visit www.idc.co.za for more information.
NATIONAL EMPOWERMENT FUND (NEF) COVID-19 FUND
Black-owned SMEs in need of working capital, machinery and equipment to manufacture and supply a range of medical products to aid in fighting COVID-19 can access between R500 000 and R10 million with a 12 month payment moratorium at 0% fixed interest rate. Visit https://www.nefcorp.co.za/covid-19-business-funding/ for more information.
B. PRIVATE SECTOR INITIATIVES
SOUTH AFRICA FUTURE TRUST
The South Africa Future Trust is offering salary support for SMMEs with an annual revenue of less than R25 million. It is essential to provide evidence illustrating that the organisation was in a strong financial position prior to the COVID-19 pandemic. The scheme is currently available to clients of the five banks (Absa, FNB, Mercantile Bank, Nedbank and Standard Bank) whose businesses were financially sustainable prior to the COVID-19 crisis. SMMEs should register their interest directly via one of the banks. Visit https://opp-gen.com/saft/ for more information.
PRIVATE BANKING INSTITUTIONS
Commercial banks are also offering SMEs a variety of debt relief options. Their websites can be monitored for more detailed information in this regard.
- ABSA COVID-19 Relief
- FNB COVID-19 Relief
- NEDBANK COVID-19 Relief
- STANDARD BANK COVID-19 Relief
SAVCA SMME PORTAL
SAVCA members are pledging pro-bono services to support small, medium and micro-enterprises (SMMEs) whose businesses have been impacted by the COVID-19 crisis and lockdown. Assistance has been earmarked in the form of access to experts and professionals providing support ranging from marketing, legal, finance support, and helping SMMEs understand how to access grant and bridge funding. Visit https://covid-19.savca.co.za/ for more information.