MCEP – ECONOMIC JOB CREATION AND SUPPORT

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MCEP – ECONOMIC JOB CREATION AND SUPPORT

Objective:

To provide concessionary debt funding to manufacturing companies that create jobs

WORKING CAPITAL FACILITY

Qualifying Criteria

  • Available for working capital requirements only relating to production costs, excluding direct salaries and wages.
  • Available to companies that are at least BBBEE level 4 or achieve Level 4 within 24 months;
  • Available to manufacturing companies;
  • Available to start-ups and existing companies;
  • No retrenchment during the term of the facility
  • Leverage level of at least 20% from IDC

Instruments, Pricing and Other

  • Instrument: Debt
  • Priced at 0% for the duration of the MCEP facility
  • Maximum term is 48 months, including moratorium
  • Limited funding of R30 million per applicant (total funding limit across all MCEP sub-funds)
  • First draw within 6 months from approval
  • For existing companies, a loan limited to 30% of total funding from MCEP and IDC capped at R3 million may be converted into a grant for companies that demonstrate creation of at least 10% additional jobs within a period of 18 months after first disbursement.
  • Raising and commitment fees are excluded. All other fees are applicable.
  • Business Support provided at a maximum of R3 million

PLANT & EQUIPMENT FACILITY

Qualifying Criteria

  • Only available to Black Industrialists (BIs) – at least 51% shareholding.
  • Available to manufacturing companies;
  • Available to start-ups and existing companies;
  • No retrenchment during the term of the facility
  • Leverage level of at least 20% from IDC;
  • Limited to R30 million per applicant (total funding limit across all MCEP sub-funds).

Instruments, Pricing and Other

  • Instrument: Debt
  • Priced at 0% for the duration of the MCEP facility;
  • Maximum term is 84 months, including moratorium;
  • First draw within 12 months from approval;
  • For existing companies, a loan limited to 30% of total funding from MCEP and IDC capped at R3 million may be converted into a grant for companies that demonstrate creation of at least 10% additional jobs within a period of 18 months after first disbursement;
  • Raising and commitment fees are excluded. All other fees are applicable; and
  • Business Support provided at a maximum of R3 million.

OTHER

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