Small businesses are encouraged to apply for the SEDA Asset Assist Funding to acquire capital to fund selected equipment as well as working capital. The Small Enterprise Development Agency (SEDA) is an agency of the Department of Small Business Development in South Africa responsible for the Implementation of the small business plan of the national government. It was established in 2004 through the National Small Business Amendment Act, Act 29 of 2004 and its mission is to promote entrepreneurship and develop small enterprises. It does this by providing customised non-financial business support to grow and sustain small and medium enterprises (SMEs). SEDA has 54 branches and over 110 incubators in the country.
Objectives of the SEDA Assist funding for SMEs
Eligibility
To qualify for the SEDA Asset Funding for SMEs, the business must be:
- South African-owned and must provide a valid SA ID document. Sole proprietors will also qualify;
- A registered private company with CIPC documentation;
- Tax compliant and can submit a tax clearance certificate;
- Able to provide Proof of Bank Account;
- Submit three months bank statements, if it is an existing business;
- Employing at least 70% South African citizens; and
- Able to provide a valid address where the business operates.
Note that qualifying SME’s will be required to submit quotations from suppliers that are registered on the Central Supplier Database of the National Treasury. A key requirement is for these suppliers to also be tax compliant. A total of three comparable quotations must be submitted and these will form part of the initial application form that is submitted.
The SEDA Asset Funding for SMEs is also looking to increase employment in the country. One of the key questions entrepreneurs must answer at application phase is an indication of the number of jobs that will be created post-investment.
One of the documents that must accompany the application form is proof of attendance of a business skills training. If this is not included with the application, entrepreneurs will be required to attend a business a business skills training course as soon as their application is successful.
Exclusions
The following are specifically excluded from the programme:
- Cooperatives as they have a different programme
- Businesses with turnover of more than R3 million
- Payment for costs that were incurred before the start of the programme
- Businesses with a turnover of more than R3 million per annum
- Bonus payments and costs associated with tendering and tendering documentation
- Any illicit business activities as well as the purchasing of liquor and cigarettes as stock
- Non-business-related infrastructure, activities, vehicle for personal use
To apply, use this form from SEDA and note the closing date of 1 March 2024. The address you need to use to return the the application form and other documents depends on your location. The list of email addresses to use for submissions is included in the application form.
Further Information
One of our objectives is to empower small businesses and startups by curating funding opportunities that we come across. Refer to this page for other opportunities.
While formal company registration is not always a prerequisite for accessing funding, it is crucial for formalised entities to maintain compliance. Lack of proper governance will completely hinder any prospects of funding. For guides and articles on governance, please refer to this section of our site.
