SME Grants for business funding in South Africa tends to be less intensive and funding institutions tend to be more willing to help you complete your application. Grants for manufacturing businesses that would require a large amount of money will have strict rules attached to them including meeting the production and sales targets you set out in your business plan. Grants for export also require a lot of information about your company and how it intends to use the money it is awarded in growing South Africa’s export market.
Applying for a grant requires plenty of preparation and research. To begin the grant-seeking process, you need to understand the different types of grants, what grant money can be used for, and what funding institutions expect from you before they award the grant. There are no magic formulas, short cuts, or sure-fire methods to follow when you’re hoping to get a grant. You won’t even be able to track down a standardized process for grant application.
A grant is the giving of funds for a specific purpose; a monetary aid awarded after meeting a specific set of qualifications, which aid does not have to be repaid in some instances and a payment on a regular basis for a fixed period in other instances. A good way to discover what grants are available (along with processes for application) is to explore online. Type in search phrases, such as business grants or DTI grants.
Here are some Websites that yield valuable information about various grants and uses of grant monies:
- The DTI: The Department of Trade and Industry – Financial Incentives website
- Seda: Small Enterprise Development Agency Website
- IDC: Industrial Development Corporation
- NEF: National Empowerment Fund
Grant disbursing Institutions bequeath money based on what matters to them, not what matters to you. If the way you plan to spend the grant money doesn’t match the Grant Disbursing Institutions mission, you’re just wasting time. Thoroughly research each grant (and the organization that sponsors it) before you apply. Grant Disbursing Institutions are not impressed by people who know nothing about their grant or its mission.
Grant Disbursing Institutions recognize the intent of proposals that are thrown together just to get some money out of them. Don’t expect something for nothing. Your grant proposal has to demonstrate that you have a solid plan for using the money. Your documentation needs to be thorough and checked by a recognised institution who has the credibility and knowledge to verify the quality of the information presented. Most grants will require the following information:
- A detailed business plan. this can be anywhere from 5 pages to 500 pages, depending on what you are applying for
- Financial statements – most of the these financials will be need to be audited and certified to be authentic
- Tax Status – it is very important that your taxes are up to date and you can attain a copy of your tax clearance certificate from SARS as well as a copy of your previous tax return.
- Proof of ownership of the company including shareholders
- ID Copies of directors and key personnel
- Proof of address as per FICA regulations
- Quotations from service providers from whom you intend purchasing goods and services from when applying on the grant. Most Grant Disbursing institutions require 3 quotations
Don’t take offense when Grant Disbursing Institutions requests additional information about your application and plans, this is just procedure.
At DTC we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same. DTC has SA’s largest network of funders that includes venture capital companies, government funds, private equity funds, banks, angel investors, BEE grants & initiatives, Silicon Cape investment companies and crowd funders. We assisted businesses since 2006 in accessing over R4,8billion in funding and/or non-repayable grants and we offer national assistance.
Contact us for more information on SME Grants in South Africa.