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

Wednesday, March 25, 2020 at 1:34 PM by Priscillah Mueni

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.

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

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.

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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.