The NYDA Grant Programme is designed to provide young entrepreneurs with an opportunity to access financial and non- financial business development support, enabling them to establish or grow their businesses. The programme promotes economic development, employment, and social cohesion. Grants are offered to individuals, co-operatives, and Community Development Facilitation Projects. The grant applications are processed at a branch within 30 working days.
The grant may be used for the purposes of; purchasing movable and immovable assets, as bridging finance, shop renovations, working capital that is paid directly to the grantee, or for co-funding with legal entities only.
The programme focuses on youth entrepreneurs who are at intentional, promising and new stages of enterprise development. Young people whose business ideas qualify for the Grant Programme, depending on their individual needs, will also undergo some of the NYDA’s non- financial support services.
Their mandate, as outlined by the NYDA Act, is as follows:
- Develop an integrated youth development plan and strategy for South Africa;
- Develop guidelines for implementing an integrated national youth development policy and make recommendations to the President;
- Initiate, design, co-ordinate, evaluate and monitor all programmes aimed at integrating youth into the economy and society as a whole.
NYDA Grant non-financial services include:
• Mentorship;
• Business Consultancy Services;
• Market Linkages;
• Business Management Training Programme;
• Youth Co-operative Development Programme;
• Individuals or Enterprises which require funding less than a R1000 or more than R200 000 (for agriculture and technology related projects the maximum funding value is R250,000.00);
• Partial funding, co-funding or funding towards a deposit for a loan from another lending establishment;
• Where an application is made by current NYDA staff members, Board Committee Members or Member of the Accounting Authority;
• Pyramid Sales Schemes;
• Businesses or shareholders of businesses that are still owing the NYDA through loan funding;
• Businesses or shareholders of businesses that received NYDA SME loan funding;
• Businesses or shareholders of businesses that had their loans written off by NYDA;
• Businesses that have an annual turnover exceeding R750,000.00, except for cooperatives whose annual turnover must not exceed R1000,000.00;
• Second hand equipment, except for industrial equipment with a minimum balance lifespan of five years;
• Are investment trusts or venture capital / private equity funds;
• Require finance to substitute an existing financier;
• An individual or business shall not receive a cumulative grant amount above R200 000 from NYDA during their lifetime except for cooperatives (for agriculture and technology related projects the maximum cumulative value is R250,000.00);
• A member of a business or cooperative enterprise who resigns from the business or cooperative can only apply for grant funding after two years from the date of resignation from the business that has been funded by the NYDA in the past from the grant programme;
• Require funding for prototyping except for (cell phone application development);
• Require seed capital for research and development;
• Require funding for patent registration; and
• Require funding to purchase exclusive business/distribution rights.
Those who are eligible to apply for the NYDA Grant include:
- youth from 18-35 years of age;
- youth with skills, experience or with the potential skill, appropriate for the enterprise that they conduct or intend to conduct;
- South African citizens; and
- South African residents.
The Application Procedure is as Follows:
- You must apply 3 months before you turn 35 years;
- Submission of all required documentation;
- Proof of attending Business Management Training course;
- Business Pitch presentation of 10 minutes – in person or telephonically; and
- Due Diligence assessment conducted by the NYDA official on the business.
Dream Team Capital can provide access to NYDA Grant providers and we can assist with the required applications and developments!
For more information & assistance – Contact Us.