In partnership with the Department of Trade, Industry and Competition, the National Empowerment Fund (NEF) will facilitate funding for black entrepreneurs to manufacture and supply a range of medical products to help the country flatten the curve of COVID-19.
As a qualifying entrepreneur, you can expect funding of between R500 000 and R10 million in concessionary loans to purchase machinery, equipment and raw materials and to fund other working capital requirements for the manufacture and supply of medical masks, sanitizers, dispensers and related healthcare products.
A total R200 million has been set aside for the purpose, and once disbursed you will be accorded a 12 month repayment holiday to help your businesses stabilize. The loans will be offered at 0% interest for the first year and thereafter at 2.5% per annum. The loans will be repayable over a maximum term of 60 months.
Applications are expected to take a total of 2 weeks from application to disbursement, following receipt of all relevant documents for commercially viable applications. The NEF says targeted entrepreneurs are those businesses already registered as suppliers with retailers and other institutions in good standing, as well as those that have a purchase order, a contract or letter of intent with a credible entity.
The priority product and service list encompass the following:
- hand sanitisers
- hand soaps
- medical protective clothing
- disposable plastic gloves
- facial masks detergents / cleansing products
- steel beds linen & hospital clothing
- medical supplies
- dispensers (water, soap & sanitisers)
- toilet paper plastic bottling & moulding
- mattresses & sponges
- disposable caps
- alcohol-based wipes
In order to be eligible for this support, you must:
- be a registered South Africa company
- be in good standing with a valid tax clearance certificate at assessment as well as before the loan is disbursed
- be a current and registered supplier with retailers and other institutions in good standing or have a purchase order/contract/letter of intent
- have a project with a minimum requirement of R500 000, require working capital or funds to purchase machinery and equipment, the fund WILL NOT service any debt or help settle monies owed
- this project must result in retaining or increasing direct jobs
- have greater than fifty percent (>50%) Black shareholding and management control
- what this means is black management must be directly involved in the day-to-day running of the operation and must have requisite expertise in the sector
- in line with the NEF’s transformation mandate, preference will be given to applications that demonstrate meaningful black women ownership, management, and control
The following information will be required to make an application:
- declaration on BEE status and size of business
- NEF application form (accessible on NEF website: www.nefcorp.co.za)
- summary of production in the last 3 months
- copy of the historical financial statements (up to 3 years if available)
- signed copy of the contract, purchase order or letter of intent from the applicant’s client/s
- financial forecast for the duration of the contract, order, or letter of intent
- the forecast should include income statement, cash flow statement and balance sheet for the duration of the funding
- additional information that would be necessary to enhance the application may be requested by the NEF as and when deemed necessary
CURRENT STATUS: Applicants may reach the NEF on email@example.com and on 011 305-8080 for this emergency funding.
Applications are open: https://www.nefcorp.co.za/wp-content/uploads/2020/03/NEF-COVID-19-Fund-Application-Form_Active-fields.pdf
For further information you can refer to the following link: https://www.nefcorp.co.za/wp-content/uploads/2020/03/COVID-Fund-Brochure-2020_9.pdf.pdf