Support for Enterprises based in Townships and Villages

With the re-opening of the economy, the township and village economies require special focus if government is to achieve the aspirations
of the new economy post-Covid-19

OVERVIEW

The following schemes are available for qualifying entrepreneurs to apply: (a) Small-scale bakeries and confectioneries support scheme (b) Informal and small-scale clothing and textile support scheme (c) Automotive Aftermarkets Support

A. Small Scale Bakeries and Confectionaries Business Support Scheme
The Scheme is aimed at supporting small scale bakeries and confectioneries operating as micro or informal businesses with assistance to purchase business equipment and provision of working capital. The financial package (loan) through SEFA is structured to cover cost of equipment (paid directly to equipment supplier) and working capital.

B. Small Scale and Micro Clothing and Textile Business Support Scheme for enterprises located in townships and villages
The Scheme is aimed at supporting small scale, micro and informal businesses in the clothing and textile industry to: a) seize opportunities in the sector availed by the Covid-19 pandemic such as production of personal protective equipment (PPE) in the COVID-19 response value chains and beyond; b) participate in the rebuilding and restructuring of the clothing and textile sector as necessitated by the emergence of the new world order; and c) improve the quality and competitiveness of small scale clothing and textile enterprises for both domestic supply and export market

C. Automotive Aftermarkets Support Scheme
this scheme by the Department of Small Business Development offers targeted support and development of the small/ independent automotive aftermarkets enterprises including informal businesses that are located in townships and villages and covers: (a) supporting qualified motor body repairers (panel beaters) to operate accredited small /independent panel beaters (motor body repairers) centres; (b) supporting qualified motor mechanics to operate authorized service centres; (c) supporting the small/ independent auto-spares shops to serve as distributors of automotive aftermarket spare parts centres; and (d) supporting the informal fitment centres into micro but formal fitment centres

QUALIFICATION CRITERIA

Who can apply?
a) An entity registered with CIPC as a legal entity including cooperatives;

b) The business must 100% be owned by South African nationals;

c) Employees must be 70% South Africans, and in the case of non-South African employees – they must hold valid work permits as determined by the Department of Home Affairs;

d) The business must be operating in a township or village;

e) The business must be registered or must apply for registration with SARS and UIF; and

f) The business must have a valid business bank account or willing to open a business account

    HOW DO I
    REGISTER /
    APPLY?

    Application forms for these 3 schemes will be available online on from Wednesday, 27 May 2020 and more details are available on all the websites of the Department of Small Business Development.