Effective Small Business Support During Covid-19 Challenges

Seda Presentation EC Tooling Initiative Date: 14 April 2020 Zoom Meeting Andile Yengeni

Topics to be discussed 1. Background to Seda 2. Covid-19 Challenges 3. Seda (DSBD) responses 4. Going forward

Background to Seda Department of Small Business Development (DSBD, born 2014) is the principal body of Seda Seda is a non-financial business development services agency of DSBD born 2004 Seda s sister agency dealing with financial services is sefa National Office; 9 Provincial offices; 53 Branches; 75 Bus & tech Incubators Pre-intervention diagnostic assessments Use of service providers and intervention delivery management Programmes run via National Office including by STP

Covid-19 Challenges The need to for social distancing to prevent infections Face-to-face interfaces limitations Information dissemination and diagnostic assessments limitations Small enterprises no access to markets - lockdown Small enterprises no access to usual support or via usual access points Access to innovative solution

Seda (DSBD) Responses DSBD and both agencies declared essential services Both agencies pulled to play coordinated role is small enterprise support Number of support / relief programmes packaged for SEs Informal business support being finalized Seda and sefa staff available to support SEs remotely Non-financial services primarily SARS compliance/Accounting/Mgmg Acc / Cash flow Access to markets especially government tenders and export opportunities

DSBD Responses COVID 19 SUPPORT Fund Web location Amount/Type Purpose Please note www.smmesa.gov.za Database All SMMEs must first register here to be eligible for assistance under DSBD administered funds get reference number which is then used when application form is completed Registration Debt Relief Fund www.dsbd.gov.za To benefit SMMEs which have been negatively affected, directly or indirectly, due to the Corona virus. Have to first register on smmesa as above note also qualifying criteria below. Applications received and processed by sefa and Seda where necessary. Business Growth / Resilience Facility www.dsbd.gov.za Micro R50k R250k This facility will fund SMMEs who produce or supply healthcare and related products that are required to combat the spread of COVID- 19 pandemic Have to first register on smmesa as above note also qualifying criteria below Applications received and processed by sefa and Seda where necessary. Small >R250k R2500k Med >R2500k R5000k Informal Businesses www.dsbd.gov.za Being refined Support responses being formulated to support informal businesses, including spazas and informal traders

DSBD responses (Qualifying Criteria) DEBT RELIEF QUALIFYING CRITERIA CIPC registered by 28 February 2020; 100% owned by South African Citizens; Employees must be 70% South Africans; Priority to Women, Youth and People with Disabilities owned; Registered & compliant to SARS and UIF; Business Profile; Registration on the National SMME Database https://smmesa.gov.za Proof - negatively affected by COVID-19 pandemic; Company Statutory Documents; FICA documents (e.g. Municipal accounts, letter from traditional authority); Certified ID Copies of Directors; 3 months Bank Statements; Latest AFS or Latest Management Accounts < 3 months old - where applicable; 6 months Cash Flow Projections where applicable with detailed breakdown on application of funds including salaries, rent, et cetera Copy of Lease Agreement or Proof ownership if applying for rental relief;

Going Forward Life will never go back to the past technology exploitation Readiness to serve SE sector being redefined Informal Business support being finalized Register of informal businesses survivalists hardest hit Sectoral interventions

Q & A THANK YOU