Business Partners GM Jeremy Lang gave a pragmatic and incredibly helpful presentation on navigating the various resource channels and funding options available to entrepreneurs and business owners while the COVID-19 pandemic wreaks havoc on SMEs and organisations across South Africa.

1. Heavy Chef
The Kickstarters
SME Funding Landscape
COVID-19
Jeremy Lang
26 May 2020
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2. WHO ARE WE?
• We’re a specialist risk finance company that provides
customised financial solutions, sector knowledge, mentorship,
business premises and other added-value services for formal
small and medium enterprises (SMEs) in South Africa and 6
selected African countries.
(Kenya, Malawi, Rwanda, Zambia, Namibia, Uganda)
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3. BusinessPartnersLtd
Achievementsover39 years
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• “Doing good”
– Approved more than R18 billion to SMEs;
– In more than 71 000 transactions
– Facilitating more than 628 000 jobs
– 131 investment properties: 350 000 m2 of space for 1400 tenants
• “Doing well”
– Profitable, every year since inception and therefore sustainable
– Grew shareholders’ equity from R178 million to over R2.8 billion
– Dividends over the last 10 years equate to almost 3 times original shareholders’
shareholders’ capital invested.

4. SOURCES OF FINANCE
PRE-COVID
• Commercial Financiers
• Family & Friends
• Angel Investors
• Government and DFI’s
• Non-Bank Funding Institutions
• Private Equity
• Venture Capitalists
• Creditors
• Bootstrapping
• Crowd Funding
• Enterprise Development

5. SOURCES OF FINANCE
DURING COVID-19
• Payment Relief
– Deferment of payment obligations
– Rental, insurance relief etc
• Financial Assistance – additional capital
- Specific programs
- Grants
- Soft loans

6. SUKUMA
ADMINISTERED BY BUSINESS
PARTNERSTarget Market Formal SMEs and Formal Sole Proprietorships
Fund Size R1 000 000 000
Minimum /
Maximum R250 000 - R1 000 000
Financial
Instruments
Grant of R25 000 and Loan @ 0% for 12 months, prime for
48 months
Loan portion not available for Formal Sole Proprietors
Criteria
Signed off AFS for 28 February 2019 and management
accounts
3 months bank statements
Statutory documents
Copy of id's
Must be viable business prior to COVID-19 impact
Must be solvent
Tax compliant
Funds can only be used to cover fixed overheads such as
salaries, rent etc

7. DEPARTMENT OF LABOUR – UIF
FUNDTarget Market Employers duly registered with UIF and paying contributions
Fund Size Not specified
Minimum /
Maximum
R 3500 - R 6730 per employee, TERS (38%-60% sliding
scale)
Financial
Instruments Grant
Criteria Employer temporarily shut down, or on short time
Benefit is difference in employer payment and UIF benefit if
normally unemployed
A letter from employer confirming reduced work time due to
COVID-19
Copy ID document
Specific forms to be completed by employer and employee
Contact https://uifecc.labour.gov.za

8. DEPARTMENT OF SMALL BUSINESS
DEVELOPMENT - DEBT RELIEF
SCHEMETarget Market Small, Medium and Micro Enterprises
Fund Size R500 000 000
Minimum /
Maximum None Specified
Financial
Instruments Loan (details not specified)
Criteria
Registered with CIPC @ 28 Feb 2020 FICA - municipal statements
100% SA owned Certifiied ID copies
At least 70% must be SA employees 3 months bank statements
Priority to owners with disabilities AFS and Management accounts
(within 3 months)
Tax and UIF compliant Copy of the lease agreement
Copy bank details of employees 3rd party facility statements
Proof of negative impact by COVID-19 Breakdown of funding requirements
Statutory documents, MOI, etc
Contact https://smmesa.gov.za

9. SOUTH AFRICAN FUTURE TRUST
Target Market SMEs
Fund Size R1 000 000 000
Minimum /
Maximum
R750 per permanent employee per week for 15 weeks (excl
directors)
Maximum of R15 000 000
Financial
Instruments
Loan at 0% interest payable by 31 December 2025 as cash
flow permits
Criteria Operating for at least 12 months
Good credit score
Annual turnover of less than R25m
Viable prior to COVID-19
Statutory documents
Tax compliant
Confirmation of permanent employment status of staff
Contact Saft.Africa and various banking websites

10. DEPARTMENT OF TOURISM
Target Market SMMEs in Accommodation, Hospitality, Travel
Fund Size R200 000 000
Minimum /
Maximum R50 000 per beneficiary
Financial
Instruments Grant
Criteria Turnover = R5m or less
Must operate in these sectors
Signed off financial statements
Proof of negative impact by COVID-19
Operating for at least 12 months
Contact www.tourism.gov.za

11. NATIONAL EMPOWERMENT FUND
Target Market
Black owned SMEs to manufacture medical products to assist
in fighting
COVID-19
Fund Size R200 000 000
Minimum /
Maximum R500 000 – R10 000 000
Financial
Instruments
Debt – Loan @ 0% interest first 12 months, 2.5% thereafter
for 60 months
Criteria Registered companies or CC's
Tax compliance
Registered vendor with order, contract, letter of intent
Proof of need for funding i.e. working capital or equipment
Will not pay other funders
>50% black ownership and management control
(operational)

12. DEPARTMENT OF AGRICULTURE, LAND
REFORM AND RURAL DEVELOPMENT
Target Market
Small scale or communal farmer with turnover of R20 000 –
R1m pa
Fund Size R1 200 000 000
Minimum /
Maximum R50 000
Financial
Instruments Grant
Criteria Annual turnover of between R50 000 - R1m
South African citizen
At least 12 months in operation
Must be in production season
Must be registered in the producer/farmer register
Priority to owners with disability
Certified copy of ID not older than 3 months
Proof of tenure, title deeds, leases, permission to occupay etc
Contact www.dalrrd.gov.za

13. R200BN GUARANTEE SCHEME
Target Market SME’s with a turnover of less than R300 million
Fund Size R200 Billion
Minimum /
Maximum Not specified
Financial
Instruments
Loans @ interest rate linked to prime , no repayments for the
first 6 months, balance to be repaid over 60 months
Criteria
Can be used to cover overheads and supplier payments up to
3 months
Each bank will specify specific critieria
Contact
ABSA, Standard bank, FNB, Nedbank, Investec, Capitec,
Mercantile

14. APPLICATION TIPS
• Have up to date information available i.e. financials, personal and
statutory documentation, bank statements, bank confirmation letters
etc.
• Be honest and open
• Put everything in writing even when dealing with family and friends
• If you don’t make the effort to obtain relief funding, someone else
will
• Ensure adequate technology to communicate and submit
applications
• Ensure bank and other accounts are well managed
• Don’t ask for more than what you need
• Understand obligations and covenants that comes with the funding
• Ensure you are tax compliant and statutory compliant
• Ensure your application submission is complete

15. IN SUMMARY……
• Ensure you have a viable business pre and post
COVID-19
• Ensure you are a good corporate citizen
• Ensure your application is relevant and complete

16. FUNDING LANDSCAPE
POST COVID-19
• Evolution of Fintech Companies
• Smaller funders entry into the market
• Digital application submissions
• Electronic methodologies of due diligence and
verification
• Traditional funders will remain
• Crowdfunding playing an increasingly more
important role
• Lots of IP and systems developed by funders for
speedier and more efficient turnaround times into
the future

17. CONTACT DETAILS
JEREMY LANG
REGIONAL GENERAL MANAGER
JLANG@BUSINESSPARTNERS.CO.ZA
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18. THANK YOU
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