How to register for the debt relief fund/assistance for SMME’s.

UPDATE: URGENT INTERIM RELIEF FOR SMALL, MICRO AND MEDIUM-SIZED BUSINESS

After the President declared a state of national disaster in response to the COVID-19 pandemic, the DSBD (Department of Small Business Development), has been inundated with enquiries from SMMEs. The South African Government understands that SMMEs will be affected on two levels:

1. As businesses when the economy slows down, and
2. As suppliers of products and services during this period.

To mitigate the impact during the expected economic slowdown, the department has finalised the SMME Support Intervention initiative, comprising a Debt Relief Fund.

How the fund works:

This 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. This facility will also assist entities in acquiring raw material, paying labour and other operational costs. All these interventions will be structured to match the patterns of the SMMEs cash flow, as well as the extent of the impact suffered.

How to register for the debt relief fund/assistance for SMME’s:

• All small, micro and medium enterprises (SMMEs) may apply for relief on existing debts and payments.
• All applicants must demonstrate a direct link of the impact, or potential impact, of COVID-19 on the business operations.
• Organisations wanting to apply for assistance from the Debt Relief Fund must register on the SMME South Africa portal at www.smmesa.gov.za
• Applicants will be screened by way of a set of criteria.
• Details that companies are required to include in their applications include:
  • Annual turnover;
  • Shareholders (including current BEE standing)*;
  • Number of employees;
  • Employee demographics;
  • Sub-sectors.
• You will have the option to ask for either financial assistance, or non-financial assistance, or both.
• This facility will offer working capital, stock, bridging finance, order finance, equipment finance and the amount required will be based on the funding needs of the business.
• The use of this database is based on the need to track, monitor and strengthen the impact of business development support to SMMEs by both government and the private sector, during this period and beyond.
• Access information about business opportunities and market access support will become a future focus of this platform.

Please note that fake news is currently doing the rounds to the effect that only companies with 51% or more black shareholding can apply. This is not true.