SA debt relief fund for businesses: aim, beneficiaries, requirements, important details

SA debt relief fund for businesses: aim, beneficiaries, requirements, important details

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!

small business development
Image: instagram.com, @bmtvafrica
Source: UGC

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.

Read also

Gwede Mantashe says ANC can't employ everyone, calls unemployment a 'global crisis'

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.

Read also

SASSA grant 2022: How to apply for a Social Relief of Distress grant

Debt Relief Fund requirements

SA debt relief fund for businesses
Image: instagram.com, @prettyboitac
Source: UGC

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.

READ ALSO: Coronavirus: Gift of the Givers sets up subsidised testing centres

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.

Read also

Exclusive: Expert explains the effects of the 2021 budget speech

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.

READ ALSO:

  • How to apply for funding for NPO 2020
  • COVID-19: Creative man turns plastic gallons into hand-washing tap
  • Worst natural disasters in South Africa
  • UK develops 10-minute coronavirus test with help from African innovation hub
  • Singer Rihanna donates R88 million to help combat COVID-19 pandemic

Source: Briefly News

Online view pixel