The Sukuma Relief Programme’s fund has been oversubscribed, with applications for financial assistance exceeding the current available capital of R1-billion, just days after applications opened.
This includes both completed applications and applications in progress.
According to Business Partners MD Ben Bierman, the high number of applications that the programme received over the past weekend, as well as on April 6, is indicative of the “crippling impact” that the Covid-19 crisis is having on South African small and medium-sized enterprises (SMEs).
The combined value of the two applicant categories for the programme exceeds R2.8-billion, and owing to this, access to the application portal has been suspended with immediate effect.
The two categories comprise the close corporations, companies and trust category; and the formal sole proprietor category.
“We will now be using the next seven days to assess the applications received and provide feedback to the applicants. Should we thereafter find that there is still capital available, either because some of the applicants were not verified and approved, or because we have managed to secure additional capital, we will then reopen the programme for applications,” Bierman says.
He emphasises that none of the Business Partners clients will benefit from the Sukuma Relief Programme, even if they have applied.
A similar relief initiative for Business Partners clients will be announced soon for which the company’s own funds will be used.
Bierman says the overwhelming response can be seen as an “effective cry for help from South Africa’s SME sector”.
To put it into perspective, just three days after the online portal was opened for applications, the programme has already received in excess of 10 000 applications from formal sole proprietors, close corporations, companies and trusts.
Emphasising the grave need for additional capital to continue supporting the struggling SME sector, Bierman is now calling on big businesses and corporations to contribute funding to the Sukuma Relief Programme.
“We are making a public plea to other big businesses that are looking to support local SMEs during this critical time. SMEs are the lifeblood of our economy and they are in need of financial assistance, now more than ever before, due to the Covid-19 pandemic. Now is the time to get involved and support each other,” Bierman states.