Looted small businesses can get help from these govt relief packages
- The Department of Small Business Development has various programmes to assist uninsured small businesses affected by looting.
- Depending on which programme you apply for, funding can be for anything from R3,000 to R2 million.
- The Business Recovery Support Programme aims to assist uninsured small businesses with cash, equipment, furniture, and fittings.
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The Department of Small Business Development has introduced various ways in which uninsured small businesses affected by the looting in KwaZulu-Natal and Gauteng can get support.
Here is how entrepreneurs can apply for assistance.
Business Recovery Support Programme
The Business Recovery Support Programme (BRSP) is specifically aimed at assisting uninsured small businesses directly affected by the violence and looting that took place in KwaZulu-Natal and Gauteng in the week of July 9.
Entrepreneurs who need funding for working capital, equipment, furniture, and fittings are catered for.
With the Blended finance approach, the BRSP offers financial support in the form of a grant (60%) and a loan (40%), with an interest rate limited to 5%. The maximum funding available for a small business is R2 million, and a repayment period of a maximum of 60 months applies.
Small enterprises with existing funding from other lenders are also considered.
The Township and Rural Entrepreneurship Programme
The Township and Rural Entrepreneurship Programme (TREP), also under the Department of Small Business Development, offers small businesses in rural areas and townships financial and non-financial support.
The programme, which existed before the looting, aims to turn opportunities in townships and rural areas into productive business ventures.
It also aims to overcome the legacy of economic exclusion by creating a conducive environment for entrepreneurial activity and provide dedicated business support to enterprises in rural and township areas, including access to funding.
The various channels include one-stop-shop business support service, remote business incubation, business skills training, product development support, credit guarantee, pitch-for-funding, and access to funding including working capital.
Business owners whose businesses were affected by the looting can also apply.
Informal Traders Support Programme
The DSBD, along with Small Business Development Agency (Seda) and Small Business Finance Agency, has developed the Informal Traders Support Programme.
The programme is aimed at supporting informal and micro businesses in the informal sector affected by the recent looting.
It is due to support over 17,000 informal trader with a once-off grant of R3,000 each.
The programme offers support for informal traders through business associations, and affected informal traders need to be willing to participate in business development services offered by the Small Enterprise Development Agency.
To apply, informal traders should not be registered with CIPC and SARS.
Business Development Support
In addition to the Informal Traders Support Programme, Seda provides Business Development Support.
This includes the development of business plans where necessary, financial management training, and other business support related aspects. It also includes pre and post investment support.
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