MCEP – MAIN FUND

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MCEP – MAIN FUND

WORKING CAPITAL FACILITY

 

OBJECTIVE

To assist manufacturing companies with working capital.

Qualifying Criteria

  • Available for working capital requirements only relating to production costs, excluding direct salaries and wages.
  • Available to start-ups and expansions;
  • Only applicable to manufacturers under Standard Industrial Classification Code 3 including Agro-Processing, Automotive and Clothing & Textiles;
  • Applicant may not contemplate workforce reductions during the term of the facility;
  • Applicant required to achieve at least BBBEE Level 4 within 24 months; and
  • MCEP funds are blended at a leverage level of at least 20% funding from IDC.

Instruments and Pricing

  • Limited to R30 million per applicant (total funding limit across all MCEP sub-funds);
  • Priced at a fixed rate of 2,5%;
  • Maximum term is 48 months, including moratorium;
  • First drawdown must occur within 6 months from approval date;
  • Raising and commitment fees are excluded. All other standard fees are applicable; and
  • Pre and post Business Development provided at a maximum of R3 million per applicant.

PLANT & EQUIPMENT FACILITY

 

OBJECTIVE

To provide finance to Black Industrialists for the acquisition of plant and equipment.

Qualifying Criteria

  • Only applicable to Black Industrialists’ businesses – at least 51% BI.
  • Only available for plant and equipment requirements;
  • Applicable to start–up businesses, expansions and expansionary acquisitions;
  • Applicant may not contemplate workforce reductions during the term of the facility;
  • Only applicable to manufacturers under Standard Industrial Classification Code 3 including Agro Processing, Automotive and Clothing & Textiles; and
  • MCEP funds are blended at a leverage level of at least 20% funding from IDC.

Instruments and Pricing

  • Limited to R30 million per applicant (total funding limit across all MCEP sub-funds);
  • Priced at a fixed rate of 2,5%;
  • Maximum term is 84 months, including moratorium;
  • First drawdown must occur within 12 months from approval date;
  • Raising and commitment fees are excluded. All other standard fees are applicable; and
  • Pre and post Business Development will be provided at a maximum of R3 million per applicant.

OTHER

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