R450 million post-unrest small business relief fund now open
A new fund has been recently announced will bring financial relief to support small, medium and micro enterprises (SMMEs) recovering from the unrest which broke out in July this year.
The National Empowerment Fund (NEF) and the Solidarity Fund’s Humanitarian Crisis Relief Fund (HCRF) call on businesses impacted by the riots to apply for the fund as soon as possible.
The NEF and Solidarity Fund’s HCRF have established a R450 million SMME Support Programme, a first between the two organizations, which will support businesses that can demonstrate that they were negatively impacted by the riots and unrest in both provinces.
The NEF has contributed R300 million into the programme, while the Solidarity Fund offered its R150 million to be used as grant funding.
The unrests and riots affected several businesses across KwaZulu Natal and Gauteng, stopping economic activities and jobs.
The financial support will be a blended loan and a grant offering. Affected businesses will need to show that they were not covered by insurance or that there is an insurance shortfall,” said the Chief Executive Officer of the NEF, Ms Philisiwe Mthethwa.
Another requirement in the fund is that the applicant must also demonstrate that jobs lost will be restored or increased within 12 months of receiving the funding.
The Solidarity Fund has invested in the Humanitarian Crisis Relief Fund (HCRF), which focuses on three key areas of support: emergency food provision; re-establishing critical delivery channels for chronic medications, and; small business recovery.
“This intervention underscores the intent of the HCRF’s ability to respond with agility and speed to business recovery efforts in a meaningful way that will ultimately benefit community access to goods and services, and aid in the much-needed economic recovery in the affected areas,” says Mr Boris Kamstra, Head of the Solidarity Fund’s Humanitarian Crisis Relief Fund.
For more information on the NEF/Solidarity Fund SMME Fund, including the criteria and enquiries, contact NEF’s call centre on 0861 843 633 (0861 THE NEF). Visit www.nefcorp.co.za