National Lockdown and the corona virus have wreaked havoc on all our lives. We are worried about what the future holds for our families, country and business.
Luckily the Department of Small Business Development (DSBD) has announced some support and intervention initiatives for interim relief for small, micro and medium sized businesses.
DSBD is of the opinion that SMME’s will be affected on two levels, namely; economy slowing down, and the disruption of suppliers of products and services during the period of lock down and in the recovery phase after the lock down has been lifted or partially lifted.
To mitigate the impact during the expected economic slowdown, the department has finalised the SMME Support Intervention initiative, comprising a Debt Relief Fund.
How to register and apply for the debt relief fund/assistance for SMME’s:
- All small, micro and medium enterprises (SMME’s) 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;
- Complete online application form (to be released on Thursday, 02 April 2020); and
- Upload required supporting documents.
Applicants will be screened by way of the following set of criteria:
- The business must have been registered with CIPC by at least 28 February 2020;
- Company must be 100% owned by South African Citizens;
- Employees must be 70% South Africans;
- Priority will be given to businesses owned by Women, Youth and People with Disabilities;
- Be registered and compliant with SARS and UIF; and
- Seda will assist micro-enterprises to comply and request for assistance must be emailed to firstname.lastname@example.org;
- Whereas small and medium enterprises must ensure own compliance;
- Registration on the National SMME Database – www.smmesa.gov.za
- Proof that the business is negatively affected by COVID-19 pandemic;
- Complete the simplified online application platform;
- Company statutory documents;
- FICA documents (e.g. Municipal accounts, letter from traditional authority);
- Certified ID copies of directors;
- 3 months bank statements;
- Latest annual financial statements or latest management accounts not older than three months from date of application – where applicable;
- Business Profile;
- 6 months cash flow projections – where applicable;
- Copy of lease agreement or proof ownership if applying for rental relief;
- If applying for payroll relief, details of employees – as registered with UIF and including banking details – will be required as payroll payments will be made directly to employees;
- SMME employers who are not compliant with UIF must register before applying for relief;
- Facility statements of other funders; and
- Detail breakdown on application of funds including salaries, rent etc.
SMME’s 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, finance to order material and supplies, 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 SMME’s 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.
How can Veritas assist you to apply for relief:
- Registration on the DSBD support website;
- Uploading of supporting documentation;
- Compiling your latest annual financial statements;
- Compiling your latest management accounts; and
- Assisting with 6 months cash flow projections.
It is hard not to worry in these troubled times, but the above mentioned initiatives prove that we will prevail.
Stay calm, stay safe and stay indoors. Together we will ride this wave to shore. Please contact any of the directors, managers or staff members at Veritas for assistance.