RELIEF FUND FOR SME’S
The Minister of Small Business pronounces a small business relief fund for qualifying enterprises, applications open on the 24 March 2020 on www.smmesa.gov.za
South African Small Medium Enterprises are peddling in uncharted territory amid the spread and growing positive cases of Corvid-19. These are unprecedented times and challenges demand unprecedented responses and this is edžactly what our government is doing.
On Thursday 19th March 2020, the minister of Small Business Development, Khumbudzo Ntshavheni announced the relief fund for SME’S The Business Growth or Resilience Facility.
The fund is aimed in assisting South African SME’S who can prove they are directly impacted by the pandemic to keep afloat during the Corvid-19 pandemic in the land.
Minister Ntshavheni explained that “Government understands that SMMES will be affected on two levels as businesses, when the economy slows down and as suppliers of products and services during this period. As an Entrepreneur, you must prove the Corvid-19 outbreak is the reason you are unable to service your debt or loan.
“The Debt Relief Fund is aimed at providing relief on existing debts and repayments, to assist SMMES during the period of the Covid-19 state of disaster”. She said. There are three main things the fund can help relief for entrepreneurs, the first is to service the business debt and loan and the second is assist with business to pay employees wages and salaries and the third is buying raw materials, stock and other operational costs.
This apply only employees who are South Africans Citizens. The funds are made available from a “Debt Relief Fund” Ntshavheni said. “To mitigate the impact during the expected economic slowdown, the department is finalizing the SMME support intervention comprising of the Debt Relief Fund and Business Growth or Resilience Facility”.
Hard hit entrepreneurs can apply online for the relief. “In future, the database will also be used to apply for both financial and non-financial support, access information about business opportunities and market access support,” she said.
Should you be in need of the financial aid or support, you must use a centralized system whereas an SME’S you will have to register on www.smmesa.gov.za and your needs screened. The minister has also instructed all provincial economic development MECS to assist in ensuring that as many small businesses as possible receive support.
The Business Growth or Resilience Facility said Ntshavheni, was meant to “enable continued participation of SMMES in supply value-chains, in particular those who manufacture (locally) or supply various products that are in demand, emanating from the current shortages due to Covid-19 pandemic”.