Western Cape C-19 Business Relief Fund (South Africa) to Provide Financial Grants

Deadline: 12-Oct-20

The Western Cape Government has announced the Western Cape C-19 Business Relief Fund to alleviate the economic impact on small and micro enterprises operating in the Western Cape caused by COVID-19. The Fund will provide relief in the form of financial grants to the affected enterprises.

In providing support and assistance to selected businesses, the objective of the Fund is to contribute to the sustainability of qualifying Western Cape enterprises i.e. for the assisted enterprises to remain going concerns (sustainability) during the C-19 crisis in order to emerge (post the crisis) as viable labour-absorbing businesses.

The Fund

• The C-19 Business Relief Fund will be a non-sector specific fund that will support micro and small enterprises operational in the Western Cape.
• Assistance from the Fund will be provided in two categories i.e. to formal and informal businesses.
• Assistance can be applied for from one category only.
• The Fund will provide financial assistance in the form of a financial grant to businesses that has been negatively affected by the COVID-19 pandemic.
• Businesses who have benefited from any government relief initiatives will not be considered for assistance from the C-19 Business Relief Fund.
• The grant will be used exclusively to subsidise business related expenses such as fixed costs, operational costs, supplier debt and other pressure cost items.
• The number of employees will be used as a qualitative consideration when adjudicating applications.
• The Fund will exclude payments of and towards salaries and wages.
• The assistance afforded to formal business will be capped at approximately R200 000, 00 per business. The Department reserves the right to determine a higher or lesser amount and the right to fund selected components of the approved application.
• The assistance afforded to informal business will be capped at approximately R15 000, 00 in total.
• The Department reserves the right to determine a higher or lesser amount and the right to fund selected components of a proposal.
• All qualifying (only business related) expenses should be substantiated with reasonable supporting documents. The acceptance of such supporting documents will be at the discretion of the Department.

Funding Information

• The assistance afforded to formal business will be capped at approximately R200 000, 00 per business.
• The assistance afforded to informal business will be capped at approximately R15 000, 00 per business.

Eligibility Criteria

• Formal Business
  Applicants in this category must be:
  • tax compliant at the time the application is submitted;
  • formally registered or incorporated e.g. with the Companies and Intellectual Property Commission (CIPC);
  • classified as a micro or small enterprise in terms of the National Small Enterprises Act
  • in formal existence for more than 2 years;
  • in good financial standing pre-COVID -19 (as at 29 Feb 2020);
  • operating in the Western Cape;
  • 100% South African owned;
  • Able to demonstrate how the business was negatively affected by the C-19 pandemic.
  • The following documents must be submitted for Formal Business:
    • Tax Clearance Certificate or Tax Compliance Status letter or Pin;
    • Copy of Company registration documents for registered companies;
    • Annual Financial Statements for two years (2017/18; 2018/19);
    • Proof of business address (lease/utility account);
    • Copy of Identity documents of all owners;
    • Payroll report indicating number of employees;
    • Management accounts (income and expenditure for the period January to August 2020);
    • Supporting documents substantiating the funding request submitted.
• Informal Business
  Applicants in this category must be:
  • 100% South African owned;
  • operating in the Western Cape;
  • in possession of a valid municipal trade permit to trade;
  • operational at the time of applying for assistance;
  • in possession of an active bank account in the applicant’s name;
  • able to demonstrate how the business was negatively affected by the C-19 pandemic; and
  • employ at least one person in addition to the owner (the Department reserves the right to request supporting documents to substantiate employment figures submitted).
  • Although tax registration is not a qualifying criterion when applying, applicants (business owners) are encouraged to register with SARS. No funds will be disbursed to business owners that are not registered with SARS.
  • The following documents must be submitted for Informal Business:
    • Copies of Identity documents of all owners;
    • Municipal trading permit;
    • Management accounts or Bank statements for the period February to August 2020; and
    • Supporting documents substantiating the funding request submitted.

For more information, visit https://www.westerncape.gov.za/general-publication/western-cape-c-19-business-relief-fund