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The National Empowerment Fund (NEF) is managing a R200m COIVD-19 Intervention Fund on behalf of the Department of Trade and Industry (dti). The fund has been set up to assist manufacturers providing such items as:

  • Medical Gloves and Accredited Masks
  • Diagnostics and Accredited test kits
  • Bulk supplies of disinfectants, sanitizers (hand and industrial) and wipes
  • Nebulisers and nebulising agents
  • Ventilators and filters
  • Disposable visors, googles, gowns and aprons
  • Packaging (bottles, caps, pumps, sachets etc)
  • Drugs proven to combat the coronavirus
  • Digital Body Thermometer
  • Powered Air purifying respirator (PAPR)
  • Sanitary pads, toilet and tissues paper
  • Manufacturing of hospital beds
  • Manufacturing of oxygen
  • Related chemicals

Funds will be availed to black empowered businesses that can provide confirmation of valid and verifiable orders.

The funds can be utilised for the following:

  1. Working Capital Requirements, and/or
  2. Acquisition of Equipment.

The minimum loan amount will be R500,000 and the maximum is R10,000,000. And it will be structured as follows:

  • 60 months repayment term,
  • 12 months payment holiday (with 0% interest during this time),
  • Repayment over the remaining period at a fixed interest rate of 2.5%.

Funding criteria:

  1. Be a registered legal entity in South Africa in terms of the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 or the Co-operatives Act, 2005.
  2. Be a taxpayer in good standing with a valid tax clearance certificate at assessment as well as before the loan is disbursed.
  3. Be a current and registered supplier with retailers and other institutions in good standing or have a purchase order/contract/letter of intent.
  4. Be requiring working capital or funds to purchase machinery and equipment.
  5. The fund WILL NOT service any debt or help settle monies owed.
  6. Have greater than fifty percent (>50%) Black shareholding and management control. Must be directly involved in the day-to-day running of the operation and must have requisite expertise in the sector. (owned by black South Africans as defined by the Broad-Based Black Economic Empowerment (B-BBEE) Act)
  7. Have a project with a minimum requirement of R500 000 in working capital, machinery and equipment, and
  8. Must result in retaining or increasing direct employment/creating jobs.

Do you qualify? Find out now by doing a self check to see whether you meet all the necessary criteria:

If so, please see required company documentation to be submitted:

  1. NEF Application Form
  2. Company’s constitutional documents,
  3. Company Credit Check information
  4. Declaration on BEE status and size of business,
  5. Purchase order from applicant’s client,
  6. Summary of production in the last 3 months, and
  7. Cash flow projections
  8. Personal statement of assets liabilities
  9. Signed Indemnity form

Have you got all your documentation together? Use our Checklist to double check.

 

 

 

 

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