Distressed Fund

COVID-19

DISTRESSED FUND

THE IDC SET ASIDE R2,5 BILLION TO SUPPORT COMPANIES IN DISTRESS

The fund aims to assist companies that are in distress resulting from the COVID-19 pandemic. The fund provides affordable business loans to IDC clients and other businesses operating in sectors within the IDC’s mandate. The funds available include R 300 million ring-fenced for the Small Industrial Finance Distressed Fund which provides support for small businesses.

 

WHO MAY APPLY FOR THE DISTRESS FUND?

 

IDC clients and other businesses operating in sectors within the IDC’s mandate that, as a direct or indirect result of the COVID-19 pandemic, are:

  • Reasonably unlikely to be able to pay all their debt as it becomes due and payable
  • Unable to fund their operating activities

 

SECTORS COVERED

Agro-processing and Agriculture

Machinery, Equipment & Electronics

Chemicals, Medical & Industrial Mineral Products

Textiles and Wood Products

Mining and Metals

Energy

Infrastructure

Tourism and Services

Automotive Transport and Equipment

QUALIFYING CRITERIA

 

  • Limited to South African companies and clients
  • Existing and new IDC clients in distress because of COVID-19. These should operate in sectors within the IDC’s mandate
  • Companies in distress because of the COVID-19 pandemic and other prevailing economic conditions, not because of mismanagement
  • Companies should demonstrate strong business fundamentals and be considered viable
  • Relief is for clients in distress due to COVID-19 and other prevailing economic conditionswith a sustainable business plan
  • Intervention plans must show the business case recovering within 18 to 36 months
  • There must be evidence that concessionary finance will enable the business to trade out of any short- to medium-term financial crisis. IDC’s funding should only be used to fund any shortfalls
  • Funding cannot be used to fund bonuses or dividends
  • Must demonstrate reasonable efforts to engage other funders and shareholders must have made efforts to fund the business.
  • The company’s financial needs must be in excess of assistance from the Unemployment Insurance Fund, the Compensation Fund, the IDC’s funding and any other support schemes

 

EXCLUSIONS

 

  • Normal expansions
  • Refinancing of existing facilities
  • Share buy-backs
  • Payment of non-operational expenditure, bonuses

 

TERMS OF FACILITY

 

  • Debt and guarantees only (equity on a case-by-case basis)
  • Scheme-related concessionary pricing

 

HOW TO APPLY

 

Complete the online form.

TOGETHER, LET’S FIGHT COVID-19

TO SAVE LIVES – AND JOBS