does seda help with business plans

What is SEDA Business Funding? 

Updated on 6 July 2022

If you are a South African small business owner or aspiring entrepreneur, SEDA business funding could be an incredibly useful resource. SEDA aims to help micro and small businesses to grow, become more profitable, and operate more sustainably. South Africa needs more successful entrepreneurs, and SEDA is helping to support and achieve this.   

If you need extra business support and funding to help you start or grow, then SEDA could be an excellent place to go. In this guide, we’ll explain what SEDA business funding is, how it works, and how you can use SEDA to grow your business.   

What is SEDA Business Funding?  

The Small Enterprise Development Agency (SEDA) is an agency of the Department of Small Business Development that offers support to small businesses. SEDA business funding is a type of government small business funding available to help small businesses start up and grow more effectively.   

SEDA provides all kinds of support for small businesses. They help aspiring entrepreneurs with an idea to start and grow their businesses. They also help existing businesses to improve their operations and become more profitable.   

Every district municipality has its own SEDA branch to help support, develop, and promote small enterprises.  

How Do You Get Funded By SEDA?  

SEDA offers loans and grants to South African Small Businesses. Qualifying businesses can access SEDA financial assistance by applying for the relevant funding option here .   

SEDA offers loans, grants, and relief options for various types of qualifying businesses. These SEDA business funding options are available to businesses within all sectors.   

The overall process for applying for and acquiring SEDA funds takes up to six weeks. All kinds of small to medium-sized South African businesses can apply for SEDA business funding. This includes cooperatives and potential entrepreneurs with a business idea.   

See Also: How to Access Funding For Your Business

What Kind Of Business Does SEDA Fund?  

SEDA provides funding and business support services for micro and small enterprises of all sectors throughout South Africa. The agency also includes a special cooperative incentive scheme ( textiles, services, energy, agriculture, print, film, and video production, consumer and housing, etc), and a black business supplier development programme .    

Any kind of business can go to SEDA for support, as long as it is a micro or small business and the support request is justifiable.   

SEDA businesses also need to be owned and operated by South Africans, registered with CIPS, and SARS compliant. SEDA generally only funds businesses with an annual turnover of less than R50 million.   

Another alternative to SEDA funding that applies to small businesses in all sectors is DTI funding .   

Does SEDA Help With Business Plans?  

Yes, SEDA does not only offer business funding, but the agency also works with entrepreneurs and small businesses to help them develop and become more profitable.   

If you are an aspiring entrepreneur with an idea, then you can go to your local SEDA office where they will help you develop your idea and business plan. SEDA will help you determine the operational and financial objectives of your business and help you create a detailed plan on how your business will operate and what your budgets would look like.     

Once your business plan is established, SEDA might also be able to help fund your business. If you are starting a new business, then it’s essential to have a clear and solid business plan before you start looking for funding of any kind.   

Can I Register My Business at SEDA?  

SEDA provides small business development and support services. This includes things like how to write a business plan, how to grow your business, and connecting you with SEDA business funding opportunities. However, the agency is not able to register businesses.  

You will need to register our business with the Companies and Intellectual Properties Commission (CIPC), which you can do on their website. You can also register your business on the Bizportal.gov.za website. It’s also possible to register your business via a bank or to outsource the task to a company that offers business registration services.   

There are many excellent resources and programs available to help small businesses grow and become more profitable. SEDA is one of these.  

SEDA makes it easy for entrepreneurs to access business growth advice and insights. Whether you need SEDA business funding or help to put together your business or growth plans, SEDA can help you achieve this. SEDA is an incredibly useful option for all kinds of businesses that need help.   

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The Small Enterprise Development Agency (Seda) is an agency of the Department of Small Business Development (DSBD) which provides non-financial support to small enterprises and cooperatives. Seda has by far the biggest network of offices in the country, with 53 branches including 46 co-location points. Seda has presence in some townships and rural areas and has programmes targeting youth and women. Seda supports 99 Technology Incubation Centres across the country, affording start-ups and new disruptive innovations a well-equipped and protected environment in which to develop and grow for a period of three years.

Contact Info

• Address: 77 Meintjies Street, Sunnyside, Pretoria 0002
• Tel: (+27) 861 843 384 and Select Option 2 .
• E-mail: [email protected]
• National Anti-Corruption Hotline: 0800 701 701

Document DSBD-PROGRAMMES(FNL).pdf

Relevant websites

• ESD Community of Practice
• Government Communication and Information System (GCIS)
• National government departments
• Provincial Economic Development Departments

Operating Hours

• Monday-Friday: 07:45am – 16:15pm
• Saturday: Closed
• Sunday: Closed
• Public Holidays:Closed

Where do I get assistance to establish a small business?

General assistance, seda (small enterprise development agency).

SEDA  - an initiative of the Department of Trade and Industry - provides business development and support services for small enterprises through its national network in partnership with other role players in small enterprise support. 

E-mail: [email protected] Call Centre: 0860 103 703 Tel: +27 (0)12 441 1000 Fax: +27(0)12 441 2064 Postal address: PO Box 56714, Arcadia, 0007 Website: www.seda.org.za Facebook:  https://www.facebook.com/groupsefa/

Financial assistance

The Small Enterprise Finance Agency (SOC) Ltd (sefa)  provides financial products and services to qualifying small, medium and micro enterprises (SMMEs) and co-operatives,.

E-mail: [email protected] Fraud hotline: 086000 7332 (sefa) Street address: Eco Fusion 5, Building D, 1004 Teak Close, Witch Hazel Avenue, Highveld, Centurion 0157 Regional offices Website: https://www.sefa.org.za/

Finfind  links SMEs who are seeking finance with appropriate lenders.  In addition it provides helpful finance education information, deals with frequently asked questions and addresses common challenges experienced by SMEs seeking finance.

Tel: +27 (0)31 207 5447 E-mail: [email protected] P ostal address:  Suite 253,  Private Bag X10,  Durban Website:  www.finfindeasy.co.za/ Facebook:  https://www.facebook.com/finfindeasy

Industrial Development Corporation (IDC)

IDC is a national development finance institution set up to promote economic growth and industrial development. It is owned by the South African government under the supervision of the Economic Development ministry.

E-mail: [email protected] Callcentre: 0860 693 888 Tel: +27 (0)11 269 3000 Fax: +27 (0)11 269 3116 Postal address: PO Box 784055, SANDTON, 2146 (Head Office) Contact details for regional offices Website: https://www.idc.co.za/ Facebook:  https://www.facebook.com/IDCSouthAfrica/

National Empowerment Fund (NEF)

The  NEF 's role is to support Broad-based Black Economic Empowerment (BBBEE).   It anticipates future funding and investment requirements to help black individuals, communities and businesses achieve each element of the codes of good practice.

E-mail: [email protected] Call centre:  0861 843 633 / 0861 (THE NEF) Tel: +27 (11) 305 8000 Fax: +27 (11) 305 8001 Postal address: PO Box 31, Melrose Arch, MELROSE NORTH 2076 Street address: NEF West Block, 187 Rivonia Road, Morningside, JOHANNESBURG Website: http://www.nefcorp.co.za

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Small Enterprise Development Agency (SEDA)

• may include grant portions
• diverse programs and initiatives
• Fostering growth, innovation, sustainability

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• Small Enterprise Development Agency (SEDA) business grant product
• Small Enterprise Development Agency (SEDA) contact details

About Small Enterprise Development Agency (SEDA)

The establishment of the Small Enterprise Development Agency (Seda) in December 2004 as an agency under the Department of Trade and Industry (the dti) in South Africa was in accordance with the National Small Business Amendment Act, Act 29 of 2004.

A significant milestone in Seda's evolution occurred in April 2006 when the GODISA Trust and the National Technology Transfer Centre merged with Seda, resulting in the creation of the Seda Technology Programme (Stp). This integration process was completed in 2009, and in 2014, Seda's responsibilities were transferred from the dti to the Department of Small Business Development (DSBD).

Building a thriving business ecosystem: Seda's extensive network and tailored support services

Seda's primary mission is to make a positive impact on the daily lives of small, medium, and micro enterprises (SMMEs). They achieve this by fostering entrepreneurship and facilitating the growth of small businesses through tailored non-financial support services. Seda works closely with various stakeholders within the entrepreneurial ecosystem, boasting an extensive network that includes 54 branches, 46 co-location locations, and 110 incubators. This vast network makes Seda the largest office network in South Africa.

Seda's range of programs and initiatives

Specialised initiatives for women, individuals with disabilities, and youth.

Seda offers a diverse range of programs and initiatives aimed at supporting SMMEs across the country. These programs include the Seda Technology Programme, which focuses on technology transfer, incubation, and maintaining high quality and standards.

The Supplier Development Programme is designed to enhance the capabilities and competitiveness of supplier firms. Moreover, the Manufacturing Support Programme provides customised assistance to small manufacturing businesses. In addition to these programs, Seda also offers targeted initiatives for specific groups such as women entrepreneurs, individuals with disabilities, and youth. They also promote entrepreneurship in schools through their dedicated programs.

Through its comprehensive offerings and extensive network, Seda plays a crucial role in nurturing the growth and sustainability of small businesses in South Africa. The agency strives to equip entrepreneurs with the necessary support, skills, and resources to thrive in the competitive business landscape. By leveraging their specialised programs and initiatives, Seda aims to create a favorable environment for SMMEs to flourish and contribute to the country's economic development.

Small Enterprise Development Agency (SEDA) Services

Seda is at the forefront of supporting small, medium, and micro enterprises (SMMEs) in South Africa through its diverse range of programs and initiatives. One crucial aspect of Seda's support is its provision of business grants and related programs aimed at fostering growth, innovation, and sustainability among SMMEs.

Seda understands that access to funding is often a significant challenge for entrepreneurs, especially those in the early stages of business development. To address this, Seda offers various funding opportunities through its business grants and related programs. These initiatives aim to provide financial support to SMMEs, enabling them to invest in their businesses, expand their operations, and explore new market opportunities.

Seda funding via the Seda Technology Programme

One of the notable programs in Seda's portfolio is the Seda Technology Programme (STP), which focuses on technology transfer, incubation, and maintaining high-quality standards. Through STP, eligible SMMEs can access funding to develop and implement technological innovations in their businesses. This support not only enhances their competitiveness but also enables them to stay at the forefront of industry trends and advancements.

Access Seda funding via its Supplier Development Programme

Additionally, Seda's Supplier Development Programme (SDP) plays a vital role in strengthening the capabilities and competitiveness of supplier firms. Recognising the critical role of suppliers in the value chain, SDP offers funding opportunities to help SMMEs improve their production processes, upgrade their facilities, and enhance their product quality. By doing so, Seda aims to create a more robust and sustainable supplier ecosystem, benefiting both the SMMEs and the larger economy.

Seda understands the importance of promoting entrepreneurship among specific groups that may face unique challenges. To address this, Seda offers specialised programs targeted at women entrepreneurs, individuals with disabilities, and youth. These programs not only provide financial support but also offer mentorship, training, and networking opportunities to help these entrepreneurs overcome barriers and succeed in their ventures.

Promoting a culture of innovation by investing in the youth

The organisation recognises the significance of instilling an entrepreneurial mindset at a young age. To foster a culture of entrepreneurship, Seda has initiatives in place to promote entrepreneurship in schools. These programs introduce students to the world of business, encourage innovative thinking, and provide guidance on starting and managing a business. By nurturing entrepreneurial skills from an early age, Seda aims to create a pipeline of future business leaders and innovators.

Small Enterprise Development Agency (SEDA) – Business Grant

• Loan Type Business Grants

Benefits of Small Enterprise Development Agency (SEDA)

• Offers various funding opportunities and programs to support SMMEs.
• Specific eligibility criteria for each funding opportunity.
• Funding may include grant portions as part of overall support.
• Eligibility factors typically consider business nature, industry focus, growth potential, and program requirements.
• Common eligibility factors include legal status, compliance, financial viability, and potential for job creation.
• Focus on SMMEs operating within specific sectors or industries.
• Some programs may target specific groups, like women entrepreneurs or manufacturers.
• Application process involves comprehensive business plans, financial projections, and supporting documentation.
• Availability of funding and grant portions may vary based on budget allocations and demand.
• Access to grants and funding support for business growth and sustainability.
• Clear guidance on determining eligibility and alignment with program objectives.
• Opportunity to showcase the viability and potential of the business.
• Regularly updated information on funding opportunities, eligibility criteria, and deadlines.
• Potential to receive grants for specific business initiatives or programs.
• Improved financial resources for investing in business expansion and market opportunities.

Understanding eligibility and accessing grants for SMMEs

Seda offers various funding options and programs to support small, medium, and micro enterprises (SMMEs) in South Africa. When it comes to accessing Seda funding, it’s essential to understand the eligibility criteria and the specific requirements for each funding opportunity.

While Seda provides a range of programs aimed at fostering entrepreneurship and facilitating the growth of small businesses, not all programs explicitly mention grants. However, some programs may include grant portions as part of their overall funding support. To access these grant portions, it’s crucial to meet the eligibility criteria and follow the application process outlined by Seda.

How to determine if your business is eligible for Seda funding

To determine eligibility for Seda funding, entrepreneurs should consider factors such as the nature of their business, industry focus, growth potential, and specific program requirements. While the exact eligibility criteria may vary depending on the program, common factors that Seda considers include the legal status of the business, compliance with regulatory requirements, financial viability, and potential for job creation and economic impact.

It’s important to note that Seda funding is typically targeted at SMMEs operating within specific sectors or industries. Some programs may have a particular focus, such as supporting women entrepreneurs or businesses in the manufacturing sector. Therefore, entrepreneurs should carefully review the eligibility criteria for each program to ensure their business aligns with the program's objectives and requirements.

How to access the grant portions of business funding offered by Seda

To access the grant portions of Seda funding, entrepreneurs will need to submit a comprehensive application that clearly demonstrates their business's alignment with the program's objectives, the intended use of the funds, and the potential impact on business growth and sustainability. The application process may involve providing detailed business plans, financial projections, and supporting documentation to showcase the viability and potential of the business.

The availability of funding and grant portions may vary based on the funding cycles, budget allocations, and the overall demand for support. Therefore, you should regularly check Seda's website or contact their National Information Centre to stay updated on the latest funding opportunities, eligibility criteria, and application deadlines.

Small Enterprise Development Agency (SEDA) Contact

Contact number.

• +27 12 441 1000
• 0860 103 703
• [email protected]
• https://www.seda.org.za/

Physical Address

• The Fields, Office Block A, 1066 Burnett Street Hatfield Pretoria Gauteng 0833 South Africa
• Get Directions

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• P.O Box 56714, Arcadia, 0007, South africa

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How to apply for business grants? DTI, SEDA, IDC, NEF and non-repayable grants

Many South Africans have business ideas with the potential to earn them a lot of money. Unfortunately, many lack the financial resources to actualise their ideas. If you are an entrepreneur looking for cash to start a venture, you need to learn about business grants, including DTI funding for small businesses.

Many South Africans have benefited from business grants like DTI funding for small businesses, SEDA, NEF, and IDC. If you wish to be a beneficiary, you must apply for them.

How to apply for business grants in South Africa

Starting and running a successful business is a challenging task. Many people struggle because they lack adequate capital to start and run operations.

Programmes like DTI funding for small businesses have made many people's dreams a reality. Read on if you need to learn how to apply for government grants for small businesses.

DTI funding

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DTI stands for the Department of Trade and Industry. DTI offers a type of government funding to small businesses in multiple sectors. The aim of the assistance is to promote economic development, increase healthy competition, increase the enterprise economy , and widen the economic opportunities available to citizens.

DTI incentives available

There are multiple ways the DTI offers financial assistance to small businesses, as shown below.

• Capital Projects Feasibility Program (CPFP): For enterprises dealing in local exports.
• Production Incentive (PI): This is an upgrade grant facility or interest subsidiary facility.
• Automotive Investment Scheme (AIS): This is used to grow the automotive sector
• Clothing and Textile Improvement Competitiveness Program (CTICP): For enterprises dealing in apparel and textile manufacture.
• Support Program for Industrial Innovation (SPII): This is given to technology innovators.
• Aquaculture Development Enhancement Program (ADEP): This facility is issued to registered entities engaged in aquaculture activities.
• Critical Infrastructure Program (CIP): This scheme improves investment in critical infrastructure projects

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NB: The DTI funding requirements may vary depending on the type or form of funding you want. To apply for this financial assistance, your business should fill out the DTI funding application forms on the DTI website .

SEDA refers to the Small Enterprise Development Agency. The agency was established in December 2004 under the Department of Small Business Development.

SEDA offers loans and grants to small businesses. It puts the specific businesses it wishes to issue grants to on the website. The agency also issues the criteria businesses must meet to receive funding.

SEDA online application

Applications for the SEDA grant are made online . You can confirm if your small business meets the criteria for funding. SEDA normally gives details of the application process on its official website .

Since the details vary depending on the sector and requirements, there are no official SEDA funding application forms for 2023.

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SEFA funding

SEFA is an acronym for Small Enterprise Finance Agency. It was founded in 2012. Since then, the government has been funding it to support small businesses.

There are various forms of SEFA funding , including term loans, bridging loans, and structured finance. As a result, SEFA funding requirements vary depending on the form you wish for.

To get a SEFA loan, for instance, you must submit a completed SEFA application form and a comprehensive business plan.

IDC funding

IDC is an acronym for the Industrial Development Corporation. IDC offers financial support to businesses looking to acquire capital for buildings, equipment, business expansion, or starting a venture.

How to apply

There is no official IDC funding application form. Instead, enterprises seeking funding should follow the steps below.

• Write a well-researched business plan. The plan should give a compelling case for funding.
• Register online for submission or submit the plan to the IDC offices. Ensure your application contains all relevant documents and certificates.
• IDC will confirm it has received your documents. Allow the officials time to process them. They may ask for extra information or documentation.
• The agency will give you feedback on the outcome of your application. If your business is successful, due diligence will be conducted by the relevant officials.
• Once verified, you will be asked to sign a loan contract before receiving cash.

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NEF funding

The National Empowerment Fund (NEF) is a project by the Government of South Africa to support and boost public participation in business and entrepreneurship. The fund was established in 1998.

NEF offers financial and non-financial support to black-owned and managed businesses. It also promotes a saving and investment culture among black people. NEF offers various f orms of support , as listed below.

• Tourism Transformation Fund
• Rural, Township & Community Development Fund
• Strategic Projects Fund
• Arts & Culture Venture Capital Fund
• Women Empowerment Fund
• IMbewu Fund
• UMnotho Fund
• Visit the NEF website to download the NEF funding application form.
• Complete and submit the form.
• The relevant officials will screen the application.
• Screened application forms will be taken to the investment committee for approval.
• Once approved, NEF will do due diligence on your business.
• The relevant officials will re-submit the final report.
• Next, the relevant NEF officials will conduct the necessary legal procedures.
• Finally, the funds will be disbursed.

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LEDA funding

The Limpopo Economic Development Agency (LEDA) was established in 2016 with the aim of accelerating job creation and promoting economic growth and development. It does this by offering business loans.

The LEDA funding application form is available on the official website. Kindly note that these are loans, not grants.

What are non-repayable small business grants?

These are a type of development funding the Government of South Africa offers to support small business growth. The businesses are not required to pay back the amount received.

How do I get local grants for my small business?

You can get grants by applying for those you qualify for, e.g. DTI, SEDA, IDC, and NEF.

What does SEDA help with?

SEDA provides support for small businesses in various phases of their life cycle. The support includes offering business talks and providing funds, tools, and equipment needed to start, run, and operate an enterprise.

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Many South Africans are beneficiaries of DTI funding for small businesses. SEDA, IDC, and NEF have assisted others. These agencies promote business development in the country.

DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional help or advice and should not be relied on to make decisions of any kind. Any action taken upon the information presented in this article is strictly at your own risk and responsibility!

READ ALSO: How to calculate PAYE on salary 2022: step-by-step guide

Briefly.co.za recently published details on how to calculate PAYE on salary. PAYE means pay-as-you-earn tax. It is a repayment scheme that incrementally makes deductions as paychecks are received in South Africa.

The South African Revenue Service collects pay-as-you-earn tax from employees. After PAYE is deducted, one receives a net salary.

Source: Briefly News

Peris Walubengo (Lifestyle writer) Peris Walubengo is a content creator with 5 years of experience writing articles, researching, editing, and proofreading. She has a Bachelor of Commerce & IT from the University of Nairobi and joined Briefly.co.za in November 2019. The writer completed a Google News Initiate Course. She covers bios, marketing & finance, tech, fashion & beauty, recipes, movies & gaming reviews, culture & travel. You can email her at [email protected].

Cyprine Apindi (Lifestyle writer) Cyprine Apindi is a content creator and educator with over six years of experience. She holds a Diploma in Mass Communication and a Bachelor’s degree in Nutrition and Dietetics from Kenyatta University. Cyprine joined Briefly.co.za in mid-2021, covering multiple topics, including finance, entertainment, sports, and lifestyle. In 2023, she finished the AFP course on Digital Investigation Techniques. She received the 2023 Writer of the Year Award. In 2024, she completed the Google News Initiative course. Email: [email protected]

More From Forbes

Project 2025 is a blueprint for business disaster.

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The American Flag blows in the wind off the back of the Ellis Island/Liberty Island Ferry with the ... [+] Statue of Liberty in the background following the Ellis Island Family Heritage Awards at the Ellis Island Immigration Museum at the Great Hall on Ellis Island April 13, 2011 in New York. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP via Getty Images)

Whatever your politics, the extreme, ideologically driven policies being suggested for Trump's second term will undermine democracy, supercharge government corruption, and devastate the American economy.

A Race Few Wanted

Though it's only June, we're already back in presidential election season. This week saw the earliest-ever general election debate in our history, as President Joe Biden and former President Donald Trump squared off before their respective party had officially nominated either. One reason both men agreed to this June debate is because the (pre-debate) polls show a neck-and-neck race . For now, many Americans seem unenthused about either candidate , and interest in this election is lower than it's been in two decades .

All that said, I hope everyone – and especially my fellow business leaders – start paying close attention because these two candidates have vastly different visions for America's future, and one of them – Donald J. Trump – is essentially advocating for the end of our democracy and the economic prosperity it drives. Throughout this cycle, Trump has been doubling down on his usual brand of extreme rhetoric – he has called his political opponents "vermin," said immigration is "poisoning the blood of our country," and pledged to be a "dictator" on day one of his second term. It'd be natural to think that Trump is just mouthing off again, except, this time, he has a playbook in hand to accomplish his goals as soon as he gets into office.

Project 2025: A Road Map to Oblivion

That playbook is Project 2025 , a 900-page report developed by the Heritage Foundation and a large coalition of conservative groups to help a second Trump presidency hit the ground running. "If we are going to rescue the country from the grip of the radical Left," its authors opine, "we need both a governing agenda and the right people in place, ready to carry this agenda out on day one of the next conservative administration."

Unfortunately, this Project 2025 agenda is brimming with extremely outside-the-mainstream ideas that threaten to roll back many Americans' fundamental rights and cause grave and perhaps permanent damage to our democratic system of government. Even if you agree with the far-right ideology this report espouses, the policies it advocates will very likely plunge the American economy into a death spiral.

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A Litany of Terrible Ideas

Education: America's continued prosperity and competitiveness worldwide rests on its educated workforce, but Project 2025 would defund and dismantle public education purely for ideological reasons. The Project 2025 agenda calls for eliminating a huge number of federal bureaus and departments that offend the far-right worldview. Among them is the Department of Education, which they deem a " convenient one-stop shop for the woke education cartel," Title 1, which provides $18 billion in funding to support low-income students across America," and Head Start, which helps over one million kids gain access to early education. Anything involving diversity, equity, and inclusion is also out, even though studies show that companies with diverse leadership and workforces tend to be more profitable than those without.

Along with scaling back civil rights enforcement, Project 2025 calls for effectively eliminating federal oversight over education and converting federal funds into block grants and vouchers that families can use at private schools—an idea that has become a fraud-ridden boondoggle wherever it's been tried.

Climate: The National Oceanic and Atmospheric Administration, the federal department that tracks hurricanes, is also marked for deletion by Project 2025 because it's "one of the main drivers of the climate change alarm industry." (One would think the hurricanes are the driver, but nevertheless.) The report also argues that the Environmental Protection Agency should be gutted for similar reasons.

Climate change is already costing the US $150 billion a year , and those costs are expected to grow substantially in the years to come if left unchecked – which is what this report argues for. That's why the Sierra Club calls Project 2025 " a death sentence for federal climate and environmental protections " and "game over for climate progress." At this late date, a head-in-the-sand approach is not a serious response.

Immigration: Project 2025, as the Niskanen Center put it , "aims to demolish the American immigration system," even though immigration has always been one of the American economy's great sources of strength. (In fact, US GDP is estimated to gain $7 trillion over the next ten years because of immigrants.) Among the many harsh policies proposed are drastically reducing visas, suspending country lists for H-2A and H-2B temporary worker visas, blocking federal financial aid to states that allow immigrants access to in-state tuition, and ending the protections of the Dream Act.

Trump himself has gone even further, saying he would quickly deport 15-20 million undocumented immigrants , even though Pew only counts 10.5 million in the US . The moral dimensions of this purge aside, many economists have noted that these draconian policies will cause a rapid rise in unemployment and inflation , especially in industries like food service, construction, and agriculture.

Cronyism : One of Project 2025's most pernicious elements is its call to return America to a nineteenth-century "spoils system" of government. Under the so-called "Schedule F" plan , about 50,000 federal workers would lose their civil service protections and become at-will employees, meaning they can be fired if they are not sufficiently loyal to the President.

In practice, this would create what conservative Robert Shea has called " an army of suck-ups …if you told your boss that what he or she was proposing was illegal, impractical, [or] unwise they could brand you disloyal and terminate you." It would also mean " a massive exodus of competence " from Washington, as well-trained, knowledgeable civil servants who gather and report data on all kinds of issues leave and are replaced with conservatives chosen only for loyalty.

Fiscal Policy: Along with the usual slate of tax cuts for the wealthy, Project 2025 also calls for abolishing the Federal Reserve, ending its role as the lender of last resort, and letting the President weigh in on interest rate hikes . Trump has also called for a 10% across-the-board tariff on imported goods, which could kick off a global trade war , rapidly accelerate inflation , and cost the average family $1500 a year . It doesn't sound great for business.

On top of everything else , Project 2025 also aims to roll back protections for LGBTQ Americans, further reduce women's access to abortion, cut overtime protections for 4.3 million workers, slash food assistance for 21.6 million households, weaken Social Security and Medicaid, stop efforts to lower prescription drug costs, and much else. This is a remarkably ideological document and one that's far more concerned with putting far-right ideas at the center of government than doing right by families.

Ultimately, as Carlos Lozada put it , the goal of Project 2025 is "capturing the administrative state," so it becomes "a tool for concentrating power and entrenching ideology." In other words, Project 2025 threatens to undermine both our democracy and economy only to benefit a small cadre of far-right faithful at the expense of the vast majority of companies and workers. This could be our new reality in just a few short months unless Americans step up and be counted this November. Even if nobody is excited about this upcoming election, it will decide our future, and we must act accordingly.

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Watch CBS News

Project 2025 would overhaul the U.S. tax system. Here's how it could impact you.

By Aimee Picchi

Edited By Anne Marie Lee

Updated on: July 12, 2024 / 1:42 PM EDT / CBS News

Project 2025, a 900-page blueprint for the next Republican president, is gaining attention for its proposals to overhaul the federal government. Among those changes: a major restructuring of the U.S. tax code. 

President Biden and Democrats have been citing Project 2025 in recent weeks as they seek to highlight what could be in store if former President Donald Trump wins at the polls in November and retakes the White House in January.  Many of the blueprint's proposals touch on economic matters that could impact millions of Americans, as well as social issues such as abortion and diversity, equity and inclusion, or DEI, topics. 

Project 2025 , overseen by the conservative Heritage Foundation, is spearheaded by two ex-Trump administration officials: project director Paul Dans, who was chief of staff at the Office of Personnel Management, and Spencer Chretien, former special assistant to Trump who is now the project's associate director.

Trump: "I know nothing about Project 2025"

For his part, Trump has distanced himself from the blueprint, writing on Truth Social early Thursday that he isn't familiar with the plan. His campaign has proposed its own goals through " Agenda 47 ," which tends to focus on social and political issues such as homelessness and immigration rather than taxes.

"I know nothing about Project 2025. I have not seen it, have no idea who is in charge of it, and, unlike our very well received Republican Platform, had nothing to do with it," Trump wrote  Thursday.

His pushback comes after Heritage Foundation President Kevin Roberts opined in a podcast interview that the U.S. is "in the process of the second American Revolution, which will remain bloodless if the left allows it to be." 

According to Project 2025's website, its goal is to have "a governing agenda and the right people in place, ready to carry this agenda out on day one of the next conservative administration."

A shift to two brackets

The tax proposals of Project 2025, if enacted, would likely affect every adult in the U.S. by tossing out the nation's long-standing system of multiple tax brackets, which is designed to help lower-income Americans pay a smaller share of their income in federal taxes compared with middle- or high-income workers. 

Currently, there are seven tax brackets — 10%, 12%, 22%, 24%, 32%, 35% and 37% — with each based on income thresholds. For instance, a married couple pays 10% in federal income tax on their first $23,200 of income, and then 12% on earnings from $23,201 to $94,300, and so on. Married couples need to earn over $487,450 this year to hit the top tax rate of 37%.

Project 2025 argues that the current tax system is too complicated and expensive for taxpayers to navigate. To remedy those problems, it proposes just two tax rates: a 15% flat tax for people earning up to about $168,000, and a 30% income tax for people earning above that, according to the document . It also proposes eliminating "most deductions, credits and exclusions," although the blueprint doesn't specify which ones would go and which would stay.

"The federal income tax system is progressive, and people who make more money pay a higher marginal tax rate than people who make less money," Brendan Duke, senior director for economic policy at the left-leaning Center for American Progress, told CBS MoneyWatch. "Conservatives look at that, and they feel that that's unfair to the wealthy to ask them to pay a greater share of their income in taxes than lower income families."

The Project 2025 proposal "is a dramatic reform of how we fund our government, where we ask the wealthy to pitch in more than lower income families," he said. "This shifts taxes from the wealthy to the middle class, full stop."

Project 2025 didn't immediately respond to a request for comment. 

In a statement, the Heritage Foundation said it will ultimately be up to the next conservative president do decide which recommendations to implement, adding "As we've been saying for more than two years now, Project 2025 does not speak for any candidate or campaign." 

Project 2025's tax rates 

Millions of low- and middle-class households would likely face significantly higher taxes under the Project 2025's proposals.

He estimated that a middle-class family with two children and an annual income of $100,000 would pay $2,600 in additional federal income tax if they faced a 15% flat tax on their income due to the loss of the 10% and 12% tax brackets. If the Child Tax Credit were also eliminated, they would pay an additional $6,600 compared with today's tax system, Duke said. 

By comparison, a married couple with two children and earnings of $5 million a year would enjoy a $325,000 tax cut, he estimated. 

"That 15% bracket is a very big deal in terms of raising taxes on middle-class families," Duke said. 

Millions of U.S. households earning less than $168,000 would likely face higher taxes with a 15% rate. Currently, the bottom half of American taxpayers, who earn less than $46,000 a year, pay an effective tax rate of 3.3%  — which reflects their income taxes after deductions, tax credits and other benefits. 

Among other tax and economic changes proposed by Project 2025: 

• Cutting the corporate tax rate to 18% from its current 21%, which was enacted in 2017's Tax Cuts and Jobs Act. Prior to the TCJA, the corporate tax rate stood at 35%.
• Reducing the capital gains tax to 15%. Currently, high-income earners pay a tax of 20% on their capital gains.
• Eliminating credits for green energy projects created by the Inflation Reduction Act.
• Considering the introduction of a U.S. consumption tax, such as a national sales tax. 
• Eliminating the Federal Reserve's mandate to maintain full employment in the labor market.

To be sure, overhauling the tax system would require lawmakers to approve changes to the tax code, which could be difficult if either the House or Senate is controlled by the opposing party. For instance, Trump was able to get his Tax Cuts and Jobs Act passed by a Republican-led Congress, even though no Democrats voted in support of the measure. 

What does Trump say about taxes?

Trump hasn't yet proposed any concrete tax plans, but analysts expect that he would seek to extend the tax cuts enacted through the TCJA if he is reelected. Currently, many of the provisions of the TCJA, including lower tax brackets, are set to expire at the end of 2025. 

One likely scenario if Trump is reelected is that Republican lawmakers would extend the TJCA's tax cuts, while seeking to fund the reduction in tax revenue by repealing some of the clean energy and climate-related provisions in the Biden administration's Inflation Reduction Act, according to an April report from Oxford Economics. Lawmakers could also seek to cut spending on social benefits to offset the tax cuts, the research firm added.

Trump has suggested a proposal to create a 10% tariff for all imports and a 60% tariff for Chinese imports that could raise enough money to eliminate the federal income tax. 

Tax experts also say the math doesn't work out because money raised from new tariffs would fall far short of replacing the more than $2 trillion in individual income taxes collected by the IRS each year. Consumers are also likely to pay more in higher costs for imported consumer goods and services with tariffs tacked onto them, experts note.

"A tariff is a consumption tax, and there is a throughline between [Project 2025's] tax reform and what Trump has talked about, getting rid of taxes in favor of a consumption tax," Duke noted. 

• Donald Trump

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

More from CBS News

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Trump's wide-reaching tariff plan will hurt average Americans and only help the top 1%, Nobel-winning economist says

• Trump's proposed tariffs would benefit only the wealthiest Americans, Paul Krugman wrote in a new op-ed.
• 80% of US consumers would lose after-tax income, he said.
• Goldman Sachs also sees higher tariffs triggering sizable Fed interest-rate hikes, Goldman Sachs says.

Donald Trump has pitched sweeping tariffs as a win for the US consumer, but only the wealthiest Americans will benefit from rising trade barriers, Paul Krugman wrote in The New York Times .

In Tuesday's opinion piece, the Nobel-winning economist took aim at Trump's recently floated idea to replace the US income tax with higher import duties .

Putting aside the wide gap between the revenue streams both provide, a simpler policy that would maximize tariffs and cut income taxes by the same amount still bodes ill for most Americans, Krugman wrote.

"The net effect would be negative for 80 percent of the population, especially for the bottom 60 percent, while extremely positive for the top 1 percent," he outlined, citing data from the Peterson Institute for International Economics.

In this scenario, lower- and middle-income consumers would see their after-tax income drop, and would enjoy little benefit from the tax cuts. The opposite is true for the wealthiest Americans.

Krugman gave two reasons for this:

First, income taxes are mainly paid by the country's richest, while about half of the population doesn't pay these at all; instead, they're burdened by other taxes.

Related stories

Secondly, as tariffs apply higher costs on importers, these firms either pull their product away or raise their pricing. Both actions are inflationary, and can even boost the price of US-made products, research from the non-partisan Tax Foundation has shown.

And since lower-income families spend a bigger share of their income than the wealthy do, their pockets will take a greater hit from rising prices.

"So who would pay the tariffs that Trump will almost surely impose if he wins? Not China or foreigners in general," Krugman argued. "Everything says that the burden would fall on Americans, mainly the working class and the poor."

Trump's tariff plans go beyond their potential in replacing the income tax. The Republican candidate has previously preached the need for a universal tariff rate of 10% on all US imports, regardless of who the trade is with.

Some countries may even face higher rates, such as China: if Trump wins, Beijing could expect duties as high as 60%, he says.

If Trump is taken at his word, mounting trade barriers would boost inflation by 1.1 percentage point, Goldman Sachs' Jan Hatzius wrote on Tuesday. Higher prices would also hit at consumption, and US GDP would slump 0.5%.

Another Nobel-winning economist — Joseph Stiglitz — recently told Business Insider that he shares similar concerns of spiking inflation.

It's a recipe that would unwind the Federal Reserve's ability to cut interest rates, a hope that's contributed to this year's stock highs.

Instead, the Fed would likely turn hawkish again, raising rates as much as 130 basis points, Hatzius projected. That's equivalent to around five 25-basis-point hikes.

"A trade war between the US and China would significantly amplify our results, with a bigger increase in US inflation, a bigger hit to European growth, and a stronger case for monetary policy divergence between Europe and the US," he concluded.

Watch: The biggest revelations from Trump's tax returns

• Main content

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Chancellor Rachel Reeves is taking immediate action to fix the foundations of our economy

In her first speech as Chancellor, Rachel Reeves laid out plans to rebuild Britain and make every part of the country better off.

Good morning.

Last week, the British people voted for change.

And over the last 72 hours I have begun the work necessary to deliver on that mandate.

Our manifesto was clear:

Sustained economic growth is the only route to the improved prosperity that country needs and the living standards of working people.

Where previous governments have been unwilling to take the difficult decisions to deliver growth…

… or have waited too long to act…

… I will not hesitate.

Growth [political content removed]. It is now our national mission.

There is no time to waste.

This morning I want to outline the first steps [political content removed] taken to fix the foundations of our economy.

So we can rebuild Britain and make every part of our country better off.

But first, let me address the inheritance.

I have repeatedly warned that whoever won the general election would inherit the worst set of circumstances since the Second World War.

What I have seen in the past 72 hours has only confirmed that.

Our economy has been held back by decisions deferred and decisions ducked.

Political self-interest put ahead of the national interest.

A government that put party first, country second.

We face the legacy of fourteen years of chaos and economic irresponsibility.  

That is why over the weekend I instructed Treasury officials to provide an assessment of the state of our spending inheritance so that I can understand the scale of the challenge. And I will present this to Parliament before the summer recess. 

This will be separate from a Budget that will be held later this year – and I will confirm the date of that Budget, alongside a forecast from the Office for Budget Responsibility, in due course.

All governments face difficult choices – and I will not shrink from those choices.

Those choices are made harder, however, by the absence of the economic growth necessary to not only balance the books but also to improve living standards.

New Treasury analysis that I requested over the weekend shows that, had the UK economy grown at the average rate of other OECD economies this last 13 years, our economy would have been over £140 billion larger.

This could have brought in an additional £58 billion in tax revenues in the last year alone. That’s money that could have revitalised our schools, our hospitals, and other public services.

Growth requires difficult choices – choices that previous governments have shied away from.

And it now falls to [political content removed] fix the foundations.

We have promised a new approach to growth – one fit for a changed world.

That approach will rest on three pillars – stability, investment, and reform.

Let me turn first to stability.

In the run-up to the general election, I set out the crucial first steps in our economic plans:

To deliver economic stability, so we can grow our economy and keep taxes, inflation and mortgages as low as possible.

And that commitment stands.

I emphasised this commitment in a meeting with the Governor of the Bank of England on Friday, and I will do the same when I meet the chair of the Office for Budget Responsibility this week.

These institutions are guarantors of our economic stability and I will not be playing games at their expense.

Over the weekend I made clear to Treasury officials that the manifesto commitments that we were elected on will be kept to and they will be delivered on.

That includes robust fiscal rules.

And it includes our commitments to no increases in National Insurance, and the basic, higher, or additional rates of Income Tax, or VAT.

Now I know there are some who will argue that the time for caution is past.

[Political content removed].

That a large majority in Parliament means we have the licence to row back on the principles of sound money and economic responsibility.

I know that many of you aren’t used to hearing this after recent years. But I believe that the promises that a party is elected on should be delivered on in government and we will do so.

We do not take lightly the trust of voters who have been burned too often by incompetence, irresponsibility, and recklessness.

And to investors and businesses who have spent fourteen years doubting whether Britain is a safe place to invest, then let me tell you:

After fourteen years, Britain has a stable government. A government that respects business, wants to partner with business, and is open for business.

In an uncertain world, Britain is a place to do business.

Let me turn to how we will unlock private investment that we so desperately need.

[Political content removed] …plans to launch a new National Wealth Fund, with a remit to invest – and so to catalyse private sector investment – in new and growing industries.

And in March, the former governor of the Bank of England, Mark Carney, agreed to lead a Taskforce on the establishment of a new National Wealth Fund.

I can tell you today that I have received the report from that Taskforce, and I will be announcing the next steps in short order.

Alongside investment must come reform.

Because the question is not whether we want growth, but how strong is our resolve – how prepared are we to make hard choices and face down the vested interests;

How willing, even, to risk short-term political pain to fix Britain’s foundations.

The story of the last fourteen years has been a refusal to confront the tough and responsible decisions that are demanded.

This government will be different.

And there is no time to waste.

Nowhere is decisive reform needed more urgently than in the case of our planning system.

Planning reform has become a byword for political timidity in the face of vested interests and a graveyard of economic ambition.

Our antiquated planning system leaves too many important projects getting tied up in years and years of red tape before shovels ever get into the ground.

We promised to put planning reform at the centre of our political argument – and we did.

We said we would grasp the nettle of planning reform – and we are doing so.

Today I can tell you that work is underway.

Over the weekend, I met with the Prime Minister and the Deputy Prime Minister to agree the urgent action needed to fix our planning system.

Today, alongside the Deputy Prime Minister, I am taking immediate action to deliver this [political content removed] government’s mission to kickstart economic growth;

And to take the urgent steps necessary to build the infrastructure that we need, including one and a half million homes over the next five years.

The system needs a new signal. This is that signal.

First, we will reform the National Planning Policy Framework, consulting on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets.

And, as of today, we are ending the absurd ban on new onshore wind in England. We will also go further and consult on bringing onshore wind back into the Nationally Significant Infrastructure Projects regime, meaning decisions on large developments will be taken nationally not locally.

Second, we will give priority to energy projects in the system to ensure they make swift progress…

… and we will build on the spatial plan for Energy by expanding this to other infrastructure sectors.  

Third, we will create a new taskforce to accelerate stalled housing sites in our country…

…beginning with Liverpool Central Docks, Worcester Parkway, Northstowe and Langley Sutton Coldfield, representing more than 14,000 homes.

Fourth, we will also support local authorities with 300 additional planning officers across the country.

Fifth, if we are to put growth at the centre of our planning system, that means changes not only to the system itself, but to the way that ministers use our powers for direct intervention.

The Deputy Prime Minister has said that when she intervenes in the economic planning system, the benefit of development will be a central consideration and that she will not hesitate to review an application where the potential gain for the regional and national economies warrant it.

… and I welcome her decision to recover two planning appeals already, for data centres in Buckinghamshire and in Hertfordshire.

To facilitate this new approach, the Deputy Prime Minister will also write to local mayors and the Office for Investment to ensure that any investment opportunity with important planning considerations that comes across their desks is brought to her attention and also to mine.

The Deputy Prime Minister will also write to Local Planning Authorities alongside the National Planning Policy Framework consultation, making clear what will now be expected of them…

…including universal coverage of local plans, and reviews of greenbelt boundaries. These will prioritise Brownfield and grey belt land for development to meet housing targets where needed.

And our golden rules will make sure the development this frees up will allow us to deliver thousands of the affordable homes too, including more for social rent.

Sixth, as well as unlocking new housing, we will also reform the planning system to deliver the infrastructure that our country needs.

Together, [political content removed] we will ask the Secretaries of State for Transport and Energy Security and Net Zero to prioritise decisions on infrastructure projects that have been sitting unresolved for far too long.

And finally, we will set out new policy intentions for critical infrastructure in the coming months, ahead of updating relevant National Policy Statements within the year.

I know that there will be opposition to this.

I’m not naïve to that;

And we must acknowledge that trade offs always exist: any development may have environmental consequences, place pressure on services, and rouse voices of local opposition.

But we will not succumb to a status quo which responds to the existence of trade-offs by always saying no, and relegates the national interest below other priorities.

We will make those tough decisions, to realise that mandate. 

Be in no doubt – we are going to get Britain building again.

We are going to get Britain’s economy growing again.

We will end the prevarication and make the necessary choices to fix the foundations:

We will introduce a modern industrial strategy, to create good work and drive investment in all of our communities.

We will reform our skills system, for a changing world of work.

We will tackle economic inactivity and get people back to work.

We will take on the hard work of reforming our public services, to make them fit for the future.

We will work closely with our national, regional and local leaders to power growth in every part of Britain.

And we will turn our attention to the pensions system, to drive investment in homegrown businesses and deliver greater returns to pension savers.

I know the voters’ trust cannot be repaid through slogans or gimmicks – only through action, only through delivery.

The Treasury I lead is proceeding on that basis.

I was appointed to this post less than 72 hours ago.

Upon my arrival, I told Treasury staff that the work starts straight away.

That work has begun.

I have commissioned and received economic analysis from HMT officials on the lost growth of the past 14 years, which I have set out today.

I have instructed Treasury officials to prepare an assessment of the state of our spending inheritance, to be presented to Parliament before the summer recess.

I have started working with the Prime Minister, to make the necessary preparations for the establishment of a Growth Mission Board, and that board will meet before summer recess, focused squarely on reviving our country’s economic growth and prosperity

I have established a new Growth Delivery Unit here, at the heart of  the Treasury.

I have received the recommendations of the National Wealth Fund Taskforce, and will shortly be announcing next steps.

There is much more to do.

More tough decisions to be taken.

You have put your trust in us.

And we will repay that trust.

The work towards a decade of national renewal has begun.

And we are just getting started.

Thank you very much.

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New Plan to Target Russia’s Oil Revenue Brings Debate in White House

Treasury officials want to impose penalties on tankers that help Russian oil evade sanctions. White House aides worry that risks making gasoline more expensive.

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By Jim Tankersley and Alan Rappeport

Economic policy reporters in Washington who have extensively covered the Biden administration’s efforts to cap the price of Russian oil

Officials in President Biden’s Treasury Department have proposed new actions aimed at crippling a fleet of aging oil tankers that are helping deliver Russian oil to buyers around the world in defiance of Western sanctions.

Their effort is aimed at punishing Russia but it has stalled amid White House concerns over how it would affect energy prices ahead of the November election.

In an attempt to drain Russia of money needed to continue fighting its war in Ukraine, the United States and its allies have imposed penalties and taken other novel steps to limit how much Moscow earns from selling oil abroad. But Russia has increasingly found ways around those limits, raising pressure on the Biden administration to tighten its enforcement efforts.

Treasury officials want to do that, in part, by targeting a so-called shadow fleet of oil tankers that is allowing Russia to sell oil above a $60-per-barrel price cap that the United States and its allies imposed in 2022.

That cap was intended to restrict Moscow’s ability to profit from its energy exports while allowing its oil to continue flowing on international markets to prevent a global price shock. But Russia has largely circumvented the cap , allowing it to reap huge profits to fund its war efforts.

While Treasury officials want to knock Russian tankers out of commission, economic advisers inside the White House worry that would risk inflaming oil prices this summer and push up U.S. gasoline prices, which could hurt Mr. Biden’s re-election campaign. They have not signed off on the proposals, even as current and former Treasury officials present them with analyses suggesting the risks of a major effect on the oil market are low.

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General Business

Type: All tax-compliant businesses​

SOUTH AFRICAN REVENUE SERVICE

Website: https://www.sars.gov.za/Media/Pages/Tax-Relief-measures.aspx

What it does:

SARS may provide tax relief to assist in helping keep your workforce if you can show that your business has experienced difficulties due to Covid-19.

If your business qualifies, you will be allowed to delay 20% of your employees' taxes until the end of July 2020 and a portion of your provisional corporate taxes (without penalties or interest) until September 2020.

Who qualifies:

1.      Tax-compliant businesses

2.      Businesses with a turnover of not more than R50 million

How to apply:

1.      Register on  http://www.smmesa.gov.za/

2.      Complete online Application Form

3.      Upload required supporting documents

INDUSTRIAL DEVELOPMENT CORPORATION

Website: https://www.idc.co.za/2020/03/24/idc-interventions-in-response-to-covid-19/

Provides financial assistance (loans, guarantees, finance) to many kinds of previous to COVID-19 successful South African SMMEs to pay debts or fund operating activities.

1. South African companies with annual turnover of R50-million or less 2. Companies must have been operating for at least 12 months. 3. Business recovery projected within 18 to 24 months. 4. No funding for bonuses or dividends. 5. Minimum need of R1 million.

6. Economic distress must be Covid-related, not due to mismanagement.

Apply online at https://protected.idc.co.za/clientportal

Type: All tax-compliant businesses

SMALL ENTERPRISE FINANCE AGENCY – DEBT RESTRUCTURING FACILITY

Website: http://www.smmesa.gov.za/

Your business may receive a payment holiday for a maximum of six months to ease the burden of loan obligations.

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15.  Facility statement or other funders

16.  Detailed breakdown of application of funds including salaries, rent, etc.

1.      Register on   http://www.smmesa.gov.za/

Type: Retail

NATIONAL TREASURY

Website: http://www.treasury.gov.za/comm_media/press/2020/20200424%20Loan%20guarantee%20National%20Treasury.pdf

Provides a loan to help your SMME with operational expenses - such as salaries, rent, lease agreements, contracts with suppliers, etc.

R100 billion initially, ramping up to R200 billion in new loans to existing customers.

1.      Businesses in good standing with their commercial banks with an annual turnover of less than R300 million

2.      Used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers, etc.

3.      Only one Covid-19 loan per business

4.      A six-month repayment holiday will commence from the first drawdown, although interest will accumulate from the date on which the first drawdown on the loan occurs.

5.      Repayment of interest and capital starts after six months and businesses have a maximum of 60 months to do so.

Apply at your bank

Wholesale and Retail

Type: Informal

SPAZA SHOPS AND GENERAL DEALERS SUPPORT SCHEME IN PARTNERSHIP WITH NEDBANK

Website: http://www.sefa.org.za/services/spazashopscheme

1.      Gives Spaza shops access to working capital and a guaranteed revolving credit facility.

2.      Offers help with basic financial management. Financial/Business graduates will be assigned to give dedicated support to your business for 24 months.

3.      Assists you with legal compliance requirements that may be necessary to participate.

1.      100%-owned by South African citizens

2.      Employees must be 70% South Africans

3.      Priority will be given to businesses owned by women, youth and people with disabilities

5.      Proof that the business is negatively affected by COVID-19 pandemic

6.      Company Statutory Documents

8.      Certified copies of Directors'  IDs

9.      Three-months' bank statements

1.      Apply online at https://sefa.finfind.co.za/quiz/disclaimer?origin=SEFA&loginorreg=reg

2.      Follow the steps to where funding needs will be matched to SEFA 's  financing instruments

Type: Trust fund

SOUTH AFRICAN FUTURE TRUST

Website: https://saft.africa/smme-support/#how-saft-works

SAFT gives loans to SMMEs fund if they qualify, (first come, first served) to help with cash flow.

1.      Annual turnover below R25 million

2.      Trading for at least 24 months

3.      Sustainable business in good financial health

4.      Business adversely impacted by Covid-19— with short-term cash flow constraints

Apply online at https://saft.africa/smme-support/#how-saft-works

Type: Asset finance, growth finance, working capital

SPARTAN FINANCING

Website: https://www.spartan.co.za/funding-under-covid-19/

Spartan offers customised financing for SMMEs, but not for start-ups and only for amounts greater than R500,000.

1.       Small to mid-sized business in operation for three or more years

2.       Minimum annual turnover of R10 million

3.       Alternatively, an annual turnover between R5 million and R10 million, provided there is some current growth context such as a contract, project or acquisition

Apply online at https://www.spartan.co.za/online-application-form/

Website: https://www.vodacombusiness.co.za/business/solutions/fund-my-business

This programme lends you money for moving offices, buying equipment or maintaining cash flow.

1.      All businesses registered and operational for 12 consecutive months.

2.      Must have good credit standing.

3.      R500,000/year or R40,000/month turnover.

Apply online at https://vodalend.vodacombusiness.co.za/GetStarted

Wholesale and retail

Type: Informal​

SMALL-SCALE BAKERIES AND CONFECTIONARIES BUSINESS SUPPORT SCHEME

Website: http://www.dsbd.gov.za/

Assistance to purchase business equipment and provision of working capital if you operate an informal small-scale bakery or confectionery.

• Registered with CIPC as a legal entity including cooperatives;
• 100% owned by South African nationals
• Employees must be 70% South Africans, and in the case of non-South African employees they must hold valid work permits as determined by the Department of Home Affairs
• Must be operating in a township or village
• Must be registered or must apply for registration with SARS and UIF
• Must have a valid business bank account or willing to open a business account

Apply online at  https://smmesa.gov.za/

Type: Micro Clothing and textiles

SMALL-SCALE AND MICRO CLOTHING AND TEXTILE BUSINESS SUPPORT SCHEME FOR ENTERPRISES LOCATED IN TOWNSHIPS AND VILLAGES

This offers you access to credit, assistance with compliance and technical skills improvement, and business and financial management training.

Type: Automotive

AUTOMOTIVE AFTERMARKETS SUPPORT SCHEME

If you are in the vehicle repair and service business, you could qualify for support. Specifically aimed at four categories:

A.       qualified motor body repairers to operate accredited small/independent body repair centres;, b.      qualified motor mechanics to operate authorized service centres;, c.       small/independent auto-spares shops to serve as distributors of automotive aftermarket spare parts centres;, d.      converting informal fitment centres into micro but formal fitment centres., manufacturing.

Type: Medical products

INDUSTRIAL DEVELOPMENT CORPORATION (IDC) AND DEPARTMENT OF TRADE AND INDUSTRY (DTI)

Website: https://www.idc.co.za/2020/04/23/covid-19-special-edition-newsletter/

  What it does:

Support for the manufacturing of essential medical products.

1.      Companies that have a track record of manufacturing comparable products.

2.      Must be capable of delivering on the contract in terms of capacity, resource and experience.

1.      Draw up a well-researched business plan, stating a compelling case for funding

2.      Register online (*applications can also be submitted at the IDC office)

3.      Upload your application with the relevant documents, certificates and business plan

Transportation

Type: Tourism

Type: Insurance

UNEMPLOYMENT INSURANCE FUND

Website: http://www.labour.gov.za/easy-guide-for-employers-on-covid19

Help UIF-compliant businesses affected by COVI-19 to pay salaries.

1.      Any UIF-contributing business facing distress that is unable to pay salaries as a result of the lockdown period

2.      Any employee who is a contributor (works more than 24 hours a month) and there is an employer-employee relationship

1.      Go to https://uifecc.labour.gov.za/covid19/ and register

2.      Complete all required information

TEMPORARY EMPLOYEE/EMPLOYER RELIEF SCHEME

Website: http://www.labour.gov.za/

Offers assistance if you have had to close your businesses due to the lockdown and can't afford to pay your employees. It will cover your cash flow for up to three months—during the lockdown and also afterwards.

1.      Companies who can prove that their businesses have been severely damaged by the coronavirus crisis.  

2.      Must already be registered with the UIF.

Send an email to  [email protected] . This will generate an automatic response outlining the application process.

Machinery, equipment

NATIONAL EMPOWERMENT FUND IN PARTNERSHIP WITH THE DTIC

Website: https://www.nefcorp.co.za/covid-19-business-funding/

Funding is limited to R10 million for black-owned SMEs. It will assist you with working capital, machinery and equipment and give you a 12-month payment break at 0% fixed rate; after 12 months the fixed rate will be 2.5% up to 60 months.

1.      Registered company

2.      Valid Tax Clearance certificate

3.      Be a current and a registered supplier with retailers and other institutions in good standing or have a purchase order, contract or letter of intent

4.      Minimum 50% black shareholding and management control

5.      Minimum R500 000 in working capital, machinery and equipment

6.      Must result in retaining and increasing employment or creating jobs

Complete online Application Form at https://www.nefcorp.co.za/wp-content/uploads/2020/03/NEF-COVID-19-Fund-Application-Form_Active-fields.pdf

Type = Community-based

MEDIA DEVELOPMENT & DIVERSITY AGENCY 

Website : https://www.mdda.org.za/

What it does :

If you are a fully licensed community broadcast project or a Community and Small Commercial Media (SCM) media project, you could receive funding in one of two categories:

a.       For a community broadcast project, R50,000 to cover your rent/bond payments; salaries/stipends; telecommunications; and safety essentials.

b.      For an SCM project, R20,000 to cover your content dissemination, telecommunications and safety essentials.

1.      Must hold a valid licence from the Independent Communications Authority of South Africa .

2.      Provide months' bank statements.

3.      Not for online radio stations.

Apply online at https://www.mdda.org.za/small-commercial-application-form-ck5u

Youth-owned

YOUTH CHAMBER OF COMMERCE AND INDUSTRY SOUTH AFRICA

W ebsite: https://youthbusinessfund.co.za/about-the-fund/

For young people in businesses that are already affected by the corona virus pandemic. The Fund will assist youth entrepreneurs in managing their operational costs, paying labour costs, rental, etc.

1.      South African citizens

2.      Ages 18 to 35 years

3.      Must already have an existing business

4.      All youth businesses can apply but informal traders are particularly encouraged

Apply online at https://youthbusinessfund.co.za/how-to-apply/

Food service

Type = restaurants, community-based.

EAT OUT RESTAURANT RELIEF FUND

W ebsite: https://help.eatout.co.za/request_funding

If you run a restaurant affected by Covid-19, the fund will support you in reopening your kitchen to create meals for the needy in their communities, or to supply feeding schemes.

1.      Registered businesses within the restaurant and food industry that are operating and supplying meals to the community from their on-site kitchens.

2.      Essential Service permit holders

3.      In good standing with SARS

4.      Able to state how many meals you can produce per day, and at what cost

5.      Own approved distribution channel to deliver food, or in partnership with another company or NGO that has a valid permit

6.      PPE equipment and safety measures in place

7.      Operating for at least one business financial year How to apply: Apply online at:  https://docs.google.com/forms/d/e/1FAIpQLSc_AILdq3fhv_Jbk8LPYh_lU5Ok5Dg9wX1y537BqPNAE wmXw/viewform  

PEACE FIRST

W ebsite: https://www.peacefirst.org/covid-19

A grant to help young people around the world lead projects that address the community impacts of COVID-19, from providing mini-grants and meals to elderly neighbours, to launching digital mental health campaigns to support youth feeling isolated.

Grants are open to young people between the ages of 13-25 anywhere.

Apply online at https://forms.gle/JjxcPdUHMTpCcttR7

Information and communication

Real estate activities, type = retail.

PROPERTY INDUSTRY GROUP

Assists large retail tenants hardest hit by the Covid-19 lockdown. Relief package is estimated between R2 billion and R3 billion and aims to avoid retrenching staff during the relief period.

1.      Retail tenants in good standing at February 29, 2020.

2.      Retailers in office or industrial parks.

3.      Not for rates and taxes, utilities and insurance.

4.      Annual turnover of less than R80 million.

Approach individual landlords

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