The scary pandemic is slowly taking root in South Africa, and its impact is being felt in most of the sectors in the country. In a bid to try to contain its further spread and increased cases, the country is under lockdown. This means that most of the businesses have been paralysed, and the impact of this move might be unimaginable. However, the government has set up a debt relief fund to minimise the extent of the effects. What is it, and how does it work? Read on to find out!
Amidst the uncertainties that have been brought about by the onset of COVID-19, South Africa's economic sector has felt the full blow of the impact. To counter the grappling effect that is being caused by this pandemic, the government has set up a SMMEs debt relief fund for the sectors whose operations have been affected. You might want to read on to ascertain whether your enterprise is among those that might benefit from the funding.
Debt Relief Fund important details
What is Debt Relief Fund? This is a special kind of relief that the government is providing for the repayment of existing debts for SMMEs. It is also aimed at indirectly boosting the small businesses that have been affected by the effects of COVID-19.
Debt Relief Fund aim
This relief is aimed at cushioning the owners of SMMEs from the impact of the ongoing pandemic. The assistance will also support the enterprises in acquiring the required raw materials and payments of all the operational and labour costs.
Debt Relief Fund beneficiaries
This might sound like a good deal that the government is providing to its people. However, it is essential to note that it is only available for those that have directly felt the impact of COVID-19. The funding is meant for the small businesses that locally produce or supply goods and services that are in demand, but the pandemic has hindered their operations.
Debt Relief Fund requirements
Running these enterprises does not guarantee that one will qualify for small business funding. The government has put strict measures to sieve those that will benefit from the SMMEs funding, where databases will be used to monitor and track the business development support to SMMEs.
How to apply
You can apply for the debt relief fund from the recently-published website http://www.smmesa.gov.za, which was launched on 24 March 2020.
Amidst the scare and worries that COVID-19 has brought in South Africa, the country's economy is equally threatened. Since small, micro, and medium enterprises play an essential role in the country's economy, the government has provided a measure that would cushion these businesses from the grappling effect of the pandemic. This is through the debt relief fund. It is important to note that the finances will be disbursed to the businesses that meet the stipulated requirements. It is also important to note that all the applications are being made on the department's database.
DISCLAIMER: This article is also intended for general informational purposes only and does not address individual circumstances. Therefore, 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.