SME Grants in South Africa

posted in: Business Grants | 0

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. 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 in South Africa are useful as they can be used to uplift businesses to prosper and overcome obstacles, empowering businesses with better skills, to empower all historically previously disadvantaged individuals, to increase employment in the community, to brand businesses in the social economic and tourism world both locally and internationally.

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.

A good way to discover available grants are available (along with processes for application) is to explore online. Type in search phrases, such as business grants or DTI grants.

Listed below are websites that have 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 Website; and
  • NEF: National Empowerment Fund Website.

Grant Disbursing Institutions recognise the intent of proposals that are thrown together just to get some money out of them. 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 items:

  • A detailed business plan. This document can be from 5 pages to 500 pages, depending on what you are applying for.
  • Financial statements – most of the financials will be need to be audited and certified for authenticity.
  • 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 providers require 3 quotations.

Contact us for more information on SME Grants in South Africa.

SME Grants South Africa