Eligible businesses can now apply for loans under the R3.75-billion economic recovery support package, announced by Trade, Industry and Competition Minister Ebrahim Patel a fortnight ago to assist businesses that were impacted by the mid-July civil unrest in KwaZulu-Natal and Gauteng.
The Department if Trade, Industry and Competition (DTIC) and its development finance institutions – the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF), have collectively put together a funding package in support of various business recovery interventions.
The aim is to provide industrial loan support at a 0% interest rate to affected companies for the rebuilding of infrastructure, including equipment, fittings for the premises, stock and working capital.
Part of the economic rebuilding package is a comprehensive package by the IDC that offers funding support for businesses and communities affected by the unrest to the value of R1.5-billion. This includes a R100-million matching grant facility to support small and informal businesses in the townships, rural areas and small towns affected by the unrest.
The fund is designed to target the socioeconomic challenges facing these businesses as a result of the unrest.
In addition, R400-million has been set aside under the Manufacturing Competitiveness Enhancement Programme Economic Stabilisation Fund, which will support manufacturing companies and related services affected by the unrest, including those impacted by associated supply chain disruptions.
This fund will offer concessionary funding to affected companies through interest-free loans to preserve and grow jobs as well as restoration of value chains.
Further information can be obtained from the DTIC by mailing them on recovery@thedtic.gov.za, or calling 0800 006 543.
Information can also be sought from the IDC by mailing recovery@idc.co.za or calling 011 269 3111.
The NEF can be contacted by mailing recovery@nefcorp.co.za or calling 0861 843 633.