1 / 14

KZN Joint SMME Risk Fund: Funding Opportunities for Small Businesses in KZN

Learn about the KZN Joint SMME Risk Fund established by the Department of Economic Development and Tourism. Discover how to access funding, key stakeholders, business support, funding criteria, and more.

yorick
Télécharger la présentation

KZN Joint SMME Risk Fund: Funding Opportunities for Small Businesses in KZN

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. KZN JOINT SMME RISK FUND C M DUBE

  2. PRESENTATION OUTLINE • Background • Access to Finance How? • Stakeholders • Business Support • Funding • Criteria • Other Stakeholders • How to Access the Fund

  3. 1.BACKGROUND The Fund is an initiative of the Department of Economic Development and Tourism in response to: • Improving access to finance • Promoting BEE • Developing a sustainable economy • Local economic development • Sector development • Enhancement of the provincial supply chain mechanism • Encouraging more bank participation in SMME funding

  4. 2. Access to Finance How? The Fund is a credit guarantee which includes: • Risk sharing (with funders) resulting in competitive: • Own contribution • Security/ Collateral( in case of default, both parties share risk on a 50:50 basis) • Interest rate

  5. 3.STAKEHOLDERS To facilitate access to funding which is not easily attainable from normal banking processes, the department concluded separate funding agreements with: • Ithala • Standard Bank (SBSA) • ABSA

  6. 4. SUPPORT The loan process through this fund includes partnerships and assistance towards: • Business proposal Assessment • Bankability of Business Plans • Presentation to Banks • Pre and post finance mentorship and support or workshops

  7. 5. LOAN RANGES • ABSA Loans from R10 000 to R 3million • STANDARD BANK Loans from R100 000 to R3million • ITHALA Loans up to R15million

  8. 6.FUNDING Qualifying Businesses • New businesses and • Expanding viable businesses. Allocation of funds • Working Capital/ Bridging finance • Start-up Capital • Asset Finance

  9. 7.CRITERIA • Applicants must be BEE, historically disadvantaged backgrounds. • The business must be for a profit motive and economically viable. • The main business operations or primary place of business must be in KZN. • The owner/s who hold controlling interest must run the business on a day-to-day basis.

  10. 8.Criteria cont. • Existing business • demonstrate proven viability through audited or certified financial statements and/or management accounts. • Start-up • demonstrate potential viability through a detailed Business Plan with a 12 months cash flow projection. • Own contribution-depending on the nature/ complexity of the funding required. • Adverse Credit listings - disclose upfront

  11. 9.OTHER STAKEHOLDERS • SEDA For other business support and service provision • District and local Municipalities To ensure spread and depth of the fund • Business Community For their benefit and spread

  12. 10.ACCESSING THE FUND Contact /Approach • Department of Economic Development • Head Office • District Managers • Banks- some are centralised • Ithala • SBSA • ABSA

  13. Conclusion The SMME FUND as a sub programme of KZN Small Business Development Programme is aimed at contributing to the Strategic Goals and Outcomes of the Government.

  14. THANK YOUContacts:Muntu Dube dubem@kznded.gov.za)or Jabu Mngoma mngomab@kznded.gov.za)270 Jabu Ndlovu Street Pietermaritzburg033 264 2500www.kznded.gov.za)

More Related