The Department of Small Business Development (DSBD) continues to support informal and small businesses, inclusive of co-operatives, through a range of existing programmes. The support rendered is financial and non-financial.
The DSBD, through the Small Enterprise Finance Agency (sefa), recently conducted a research study on the impact of loadshedding on its funded clients and the following are some of the findings identified:
In response to the challenges faced by the small and informal businesses, the DSBD is considering the introduction of interventions to address the situation. The DSBD together with its agencies, the Small Enterprise Development Agency (Seda) and the sefa are looking at a multi-pronged approach for supporting SMMEs affected by loadshedding:
The power purchase IMEDP will be a 100% grant programme, whilst the TREP power purchase will be a blended term loan facility of 50% of the installed price (50% grant and 50% term loan). The programme will utilise the services and capacity of existing suppliers of equipment and accredited installers.
2. Guarantee programme via the Bounce Back Scheme administered by Khula Credit Guarantee (KCG) on behalf of government. This is a medium to long term intervention that still require intense discussion relevant parties including the National treasury who are the custodian of the scheme.
• Ongoing discussions with National Treasury indicates their interest and consideration of opening up the bounce back scheme to all Development Finance Institutions.
The DSBD will provide support to formal and informal enterprises as immediate intervention and within the available financial resources whilst working on the medium and long terms sustainable solutions.
STELLA NDABENI-ABRAHAMS
MINISTER: DEPARTMENT OF SMALL BUSINESS DEVELOPMENT