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Financial aid for close corporations, companies and trusts

Businesspartners is offering financial aid in the form of an unsecured interest-bearing loan of between R250 000 and R1 million coupled with a non-repayable grant of R25 000 per qualifying business.

The loan portion will be interest free for 12 months with no repayment obligations during this period. The loan is repayable after 12 months and incurs interest at the prime rate from month 13, once the business is on its feet.

The objective of the initiative is to provide cash flow relief to qualifying close corporations, companies, and trusts. The money can be used to cover payroll, rental, and other monthly operating overheads. There is no security requirement for the loan.

Who qualifies?

To qualify for financial aid, the business must:

  • Be formally registered
  • Provide evidence of financial viability prior to the COVID-19 outbreak
  • Be both tax and regulatory compliant.

What are the payment terms?

The loan will be structured over 60 months under the following terms:

  • No repayment obligations for 12 months
  • No interest to be incurred or raised for 12 months
  • Interest to be raised at the prime rate from month 13
  • Repayment of the loan to commence from month 13

If you have more than one business, you can apply as each business will be assessed on its own merit. However, priority will be on supporting as many business owners as possible.

How does one apply?

The application process is only available online at their website and everything required will be done through electronic communication. There is no need to travel to their offices to sign any documents.

What documents do you need?

Applicants are required to submit the following documents and information with their application:

  • Annual financial statements for the financial period ended 28 February 2019, signed off by a professional accountant
  • Management accounts for the period 01 March 2019 until at least 31 December 2019
  • The latest available EMP201 document submitted to SARS, not older than 3 months
  • 3 months’ bank statements of the business for the period 01 December 2019 to 29 February 2020 to assess operations before the lockdown
  • A rental (premises) statement, not older than 3 months
  • The statements for any other credit agreements such as asset finance or trade finance loan agreements as at 31 January 2020
  • Motivation and supporting documentation clearly illustrating the financial distress suffered by the SME as a result of the COVID-19 outbreak. The motivation can cover the following information: Reduction in turnover; Erosion of working capital; Inability or difficulty to pay wages and preserve jobs; Inability to pay rent; Inability to pay for other overheads; Inability or difficulty in servicing existing debt obligations; or all of the above
  • Statement of assets and liabilities for the main business owner
  • Copies of identity documents of all directors, shareholders, members, and trustees as applicable
  • Copy of marriage certificate including ANC contract, divorce certificate, or death certificate where applicable
  • Company documents
    • Copy of registration certificate
    • Copy of memorandum of incorporation
    • Copy of the company’s share register
  • Close corporation
    • Founding statement
  • Trust documents (if applicable)
    • Copy of the trust deed
    • Copy of the Master’s Authority Certificate
    • Copy of IDs of all trustees

Confirmation of bank account details issued by the relevant bank

What if I am sole proprietor?

Funding is available for sole proprietors click here to read the article

We can assist you in compiling the supporting documents