organisations funding small business


Below you will find a list of organisations funding small businesses.

1. SEFA

What is SEFA?

SETA ( Small Enterprise Finance Agency ) is a merger of samaf, Khula and IDC small business activities. Its vision is to help develop sustainable survivalist, micro, small and medium enterprises through the provision of finance.

Duration of the Loan:

SEFA loans are usually repayable between 1 and 5 years

Businesses that SAFA offers funding to:

SEFA offers funding to any business excluding the following business industries:

  • Tobacco, liquor, gambling, sex trade
  • Armaments
  • Speculative real estate
  • Leveraged buy-out funds:
    • Hedging
    • Borrowings
    • Ventures inconsistent with the mandate of sefa
    • Loans to partners, the fund managers, their employees and affiliates, except for members of FSCs
  • Any business involved in illegal trade
  • Any business whose trade or operations may prejudice the reputation and good standing of sefa
  • Any political organisation
  • People under debt review
  • Any business having directors ( or equivalent ) who are un-rehabilitated insolvents individuals
  • Technically insolvent businesses and individuals

Requirments:

To be able to apply for funding in SEFA, you must be:

  • South African citizens with valid South African Identity Documents
  • Be legally constituted including sole traders with a fixed physical address;
  • All business operations, including but not limited to projects, programs or enterprises, must be operated within South Africa;
  • Have completed official loan application forms;
  • Have a written proposal or business plan that meets the requirements of sefa’s loan application criteria;
  • Have provided all initial and supporting documentation for application in a professional manner;
  • Demonstrate the character and ability to repay the loan;
  • May incur debt in terms of relevant legislation;
  • Have provided personal and / or credit references;
  • Be owner manager;



HOW TO APPLY

  • Applicants approach sefa’s nearest regional office for the initial basic assessment
  • Regional office issue and assess application forms from qualifying applicants

SEFA Contacts

E-mail:helpline@sefa.org.za
Call centre: 086000 7332 (sefa)
List of SEFA Regional offices
Website: http://www.sefa.org.za/

 2. Business Partners
What is Business Partners? The company actively supports entrepreneurial growth by providing financing, specialist sectoral knowledge and added-value services for viable small and medium businesses.

Duration of loan

On average, the repayment period is five years. Business Partners does not offer finance over short periods of time.​

Requirments

When you apply for finance with Business Partnmers, your proposal will be assessed on the viability of your sound business plan and on levels of contribution that you may be able to offer. When considering an investment proposal, business partners look principally for an entrepreneur with integrity, drive, vision and appropriate experience, as well as for the potential profitability of the business and a marketable product or service. They will require a complete business plan to be in place before an entrepreneur can apply for investment finance.

When they receive your application, they will evaluate the business plan, and supply you with an in principle decision within seven days of receiving your documents. The in principle deceision is followed by negotiations, due diligence, and a submission to our investment committee. Each investment is individually structured and as such, the terms and conditions (such as interest rates, security, repayment term, own contribution, etc.) of finance vary from business to business.

Key factors Business Partners look for in a successful business plan?

  • A comprehensive breakdown of what needs to be financed;
  • Your own contribution;
  • Up-to-date financials and realistic projections that present a viable business as a going concern (if it is an existing business);
  • A viability assessment of the transaction, showing the business’ ability to meet all cash flow commitments (debt repayment, creditors and other cash expenses) and to generate a decent and acceptable return to the shareholders;
  • A demonstration that all aspects relating to a successful business have been considered (including human resources, marketing, finance, technical, production and corporate governance);

Other requirments

Business Partners Limited considers financing applications up to R25 million in all sectors of the economy. Applications for financing below R500 000 are usually not considered; the company does not operate in the informal or micro enterprise sectors.

Business Parners Contact details
E-mailenquiries@businesspartners.co.za
Tel: 0861 SMEFIN (0861 763 346)
Branch offices
Website: http://www.businesspartners.co.za/

3. IDC

What is IDC?

IDC is a national development finance institution set up to promote economic growth and industrial development. It is owned by the South African government under the supervision of the Economic Development ministry.

Duration of a loan?

IDC funding usually takes the form of medium term loans (three to seven years) with interest charged at prime + related rates

Requirments:

We encourage existing manufacturers who wish to expand and/or modernise their production capacity; manufacturers in distress due to global economic trading conditions; and entrepreneurs who wish to start up small to medium manufacturing facilities to apply for IDC support.

Every business proposal is considered on its own merit, but preference is given to:

  • Financing fixed assets and the fixed portion of growth in working capital requirements;
  • Supporting projects and/or businesses that have a high developmental impact such as rural development, empowerment, job creation, township development and value addition; and
  • Supplying distress funding for troubled companies that have a clear turnaround plan.

IDC Contact details
E-mail: callcentre@idc.co.za
Tel: 0860 693 888 (Call Centre), +27 (0)11 269 3000
Fax: +27 (0)11 269 3116)
Regional offices
Website: http://www.idc.co.za/

4. NYDA

What is NYDA?

The National Youth Development Agency (NYDA) is a South African-based agency established primarily to tackle challenges that the nation’s youth are faced with



NYDA Services

NYDA is offering grands to a total of 500 enterprises every year

What types of grants you can apply for?

• Individual grants will be issued to (Formal and informal businesses) who are at the promising and start-up phase of their development or development stage.

• Co-operatives: which are autonomous association of persons united voluntarily to meet their common economic and social needs and aspirations through a jointly owned and democratically controlled enterprise organised and operated on cooperative principles.

• Community Development Facilitation projects: the NYDA will also facilitate a process of community development through identifying projects that will be funded through NYDA funds and/or funds sourced from partners.

NYDA Grands requirments

• Are youth (18-35 yrs.) with necessary skills, experience or; with the potential skill appropriate for the enterprise that they conduct or intend to conduct;

• Are South African citizens, are resident within the borders of South Africa and members of the entity should comprise 100% South African citizen;

• Requires the grant for business start-up or growth.

• Must be willing to join the business on a full-time basis;

• Are involved in the day-to-day operation and management of the business;

• For groups they must have or be willing to form a group of minimum 5 persons;

• Operate either informally or formally; generally recognised as micro enterprises (e.g. street traders, vendors, emerging enterprises);

• Have a profit motive and are commercially viable and sustainable;

• Business are operating within the borders of South Africa;

7. What types of businesses can be assisted through the NYDA Grant Programme?

The types of businesses that will be assisted through the Grant Programme include but are not limited to; motor mechanics/panel beaters, electricians, plumbers, domestic appliance repair services, beauticians, hair dressers, cleaning companies, small scale recycling companies, street vendors, car washes and others.

Does a grant mean that I do not have to pay back the money that NYDA gives to me as an entrepreneur?

Yes, a grant does not have to be paid back, however all successful applicants will be required to actively participate in NYDA development support services such as mentorship, entrepreneurship development programme, market linkages, skills programmes etc. for two years.

NYDA Contacts

Call Centre: +27 10 880 1809

Fax: 086 606 6563


Email: info@nyda.gov.za

NYDA Branches

NYDA Enquire Online




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