Did you know the NYDA funding programme has helped numerous South African youth become self-sufficient? The National Youth Development Agency (NYDA) was established to deal with challenges experienced by young people in the country. It promotes their economic development, employment, and social cohesion.
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NYDA funding is one of the programmes run by the National Youth Development Agency, established by an Act of Parliament, i.e. Act 54 of 2008. The agency primarily deals with issues affecting South African youth, including lack of capital to start business ventures.
NYDA funding 2022 guide
Do you wish to learn how to apply for NYDA funding in 2022? The agency provides financial and non-financial support to young entrepreneurs to grow their businesses.
Non-financial support includes mentorship, business consultancy services, market linkages, and business development training. Read on to learn how you can access the funding.
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How to get funding from NYDA: Step-by-step guide
To access NYDA business funding, you must meet specific criteria and submit an application. You can submit your application by visiting your nearest NYDA Branch. Alternatively, you can apply online using the steps below.
- On an internet-enabled device, visit the official portal.
- Click Youth Enquiry/ Registration. A registration form will appear on your screen. Fill it out, ensuring you enter the correct information. Click Submit to create your account.
- Once you create the account, submit all necessary documentation.
- Provide proof of attending a Business Management Training course.
- Once the officials go through your application and ascertain you meet the requirements, you will be required to present a business pitch presentation of 10 minutes. You can do this in person or via the telephone.
- A due diligence assessment of the business will be conducted by officials from the agency. Once approved, you will receive the funding. There are different levels of funding, as shown below.
NB: A sum of R250,000 is given to youth running or planning to run agriculture and technology projects. NYDA funding application forms for 2022 are not available on the porta yet.
Who qualifies for NYDA funding?
If you require the support of NYDA to start a business, you must meet specific criteria. The grant can be given to individuals, members of cooperatives, or community development facilitation projects. The NYDA funding requirements are listed below.
Qualifications for individual business owners and entrepreneurs
- Be aged between 18 and 35 years.
- Be a South African citizen or resident.
- You must not be an un-rehabilitated insolvent.
- Your business must be operating in South Africa.
- You must have completed schooling (not in high school or college).
- You must have the skills needed to run the business or intend to run or at least demonstrate a potential skill that can be nurtured.
- You must have no criminal or corruption record.
- You must be involved in managing the daily activities of the venture.
- You must be of sane mind.
- You must have completed business management and life skills training up to a specific standard set by recommendation from clients.
- You must have a viable business idea and a business plan.
- Your idea should be profit-driven.
- If you are employed, you should resign when your application is approved.
- You must have a bank account.
Qualifications for cooperatives
- All members should be aged between 18 and 35 years.
- All members should be South African citizens or residents.
- The primary applicant or one of the members should be actively engaged in the daily operations of the business.
- The applicant should be of sound mind.
- The venture proposed or started by the cooperative should be viable.
- The cooperative must operate within the country's borders.
- The cooperative should have at least five members.
- If the highest shareholder is employed, they should resign when the application is approved.
NB: Funding for individuals should be a minimum of R1,000 and a maximum of R250,000. On the other hand, funding for cooperatives should be a minimum of R1,000 but not exceed R250,000.
Individuals/ cooperatives not allowed to apply
Individuals or cooperatives who meet one or more of the things below should not apply for funding.
- Ventures with an annual turnover above R750,000 and cooperatives with a yearly turnover above R1,000,000.
- Businesses in the sex and adult industry.
- Applicants who have received over R500,000 from other financial institutions.
- Pyramid schemes.
- Businesses that need capital of less than R1,000 or more than R200,000.
- Businesses that generate their primary income from alcohol or tobacco sales.
- Those with a withstanding small enterprise loan or any other loan from the agency, or those that had their loan written off by the agency.
- Applicants who want finance to replace their current financier.
- Funding to purchase exclusive business or distribution rights/ patent registration/ venture capitals/ private equity funds/ investment trusts.
How do I contact NYDA? If you need more details about how to access NYDA funding, use the contact details below to speak to officials at the headquarters.
- Switchboard: 087 158 6345/ 5738
- Customer service telephone: 087 158 4742
- E-mail addresses: firstname.lastname@example.org
What does NYDA help with?
It helps with capital to start and run viable business ventures. It also offers non-financial services like market linkages and business development training.
How do I apply for NYDA?
You can apply for financial aid on the NYDA portal. Alternatively, you can visit an NYDA branch to submit your application.
What are the 3 NYDA programmes?
Besides the business funding programme, there are more than three programmes. These include the National Youth Service Programme, voucher programme, mentorship programme, business management training programme, and the market linkages programme.
Who qualifies for NYDA?
The qualification criteria include being a South African citizen or resident between 18 and 35 years and with the skills or qualifications appropriate for a particular enterprise.
How does NYDA funding work?
The funding works by giving qualified youth money to start businesses. It also provides non-financial business support services to make these ventures successful.
How much can I receive from the NYDA?
The agency provides funding ranging from R1,000 to R200,000. Up to R250,000 may be given for technology and agriculture-related ventures.
How can the grant money be used?
It can be used to buy assets, bridge finance, renovate a shop, or pay working capital to a grantee.
Can I use the grant to purchase a car?
You cannot use the grant to purchase a vehicle. In addition, the money should not be used to pay loans, re-finance existing loans, or settle overdue/ outstanding revenue service liabilities.
How long does it take to process the grant?
The agency will check your credit and process the application within 30 working days. Once approved, the grant is processed at the Head Office within 30 working days.
Can I appeal if my application is rejected?
You cannot appeal if your application is rejected. However, you can re-apply for the grant.
Through the NYDA funding programmes, numerous South African youth have started successful businesses. The agency has, without a doubt, improved the lives of youth and inspired them to pursue their dreams.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
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Source: Briefly News