A new application round has opened for the R12.8-million Craft & Design Institute (CDI) Growth Fund.
The CDI Growth Fund, which is managed by CDI Capital, is a grant fund specifically for growing South African small businesses that need a cash injection to scale up further and create jobs.
The funding has been enabled through contributions by the National Treasury’s Jobs Fund, the Technology Innovation Agency (TIA), and the Western Cape Department of Economic Development and Tourism (DEDAT).
The fund is in its second year of a five-year disbursement period.
Locally owned businesses that operate within South Africa, that are at least one year old and have turnover or assets above R1-million are eligible to apply for funding.
Applicants must be able to demonstrate year-on-year growth and/or the potential for sufficient growth and must be tax compliant. Applicants also need to match 20% of the grant contribution of the fund through a cash contribution to achieve agreed objectives.
Most importantly, however, is that the business must be able to create new jobs.
Applications can be done online and applicants are taken through a diligent process of selection and support, whereby successful applicants contract for a three-year intervention and disbursement plan, performance managed by quarterly reporting, oversight and inspection, bespoke mentorship and business development support.
CDI Capital project coordinator Ryan Rode says the fund is ahead of its key deliverable, namely, the creation of permanent jobs through participating small businesses.
“The CDI Growth Fund is very specific in its focus – we are looking for small businesses that are about to employ new staff to meet growing demand and that need the capital to expand their operations.
“The funding is a grant and it is not paid back to the fund; and can help to leverage additional funding and de-risk loans. It’s a fantastic opportunity for a growing South African business that is needing to employ new staff,” he said.
The deadline for applications is July 12.