Everything you need to know about the SMME debt relief fund
During the national lock down period (26 March 2020 - 16 April 2020) only businesses that provide essential services are allowed to open and trade. This has led to a large amount of businesses who will be put under financial strain in the coming months.
What is the SMME debt relief fund?
The Department of Small Business Development has announced a debt relief fund to assist small, micro and medium enterprises that are impacted by the economic shut down caused by the coronavirus.
What funding is available from the SMME debt relief fund?
According to the government, the fund will offer assistance with:
- Working capital
- Bridging finance
- Order finance
- Equipment finance
It’s important to note that the fund will offer assistance on a case by case basis, designed specifically for each individual business.
Businesses that are involved in critical services like manufacturing masks or the distribution of food, are expected to receive priority support.
Who can apply for the SMME debt relief fund?
Here are the basic requirements needed in order to apply for the SMME debt relief fund:
- You must have a registered company with a valid company registration number;
- The company must be an SMME (less than R50m annual turnover);
- You must be able to demonstrate a direct link of the impact or potential impact of COVID-19 on the business operations;
- The company must be 100% South African owned;
- The company must employ at least 70% South African citizens;
- Company must be up to date with taxes and have a tax clearance certificate/pin;
- Company must be registered for UIF and have a UIF number;
How to apply for the SMME fund?
You can apply for the SMME debt relief fund on the government website.
You will be required to provide some basic company information including the following:
- Annual turnover;
- Shareholders (including current BEE standing);
- Number of employees;
- Employee demographics;