Small Industrial Finance Distress Fund

COVID-19

SMALL INDUSTRIAL FINANCE DISTRESS FUND

A R300 MILLION COVID-19 SMALL INDUSTRIAL DISTRESS FUND TO ASSIST QUALIFYING SMALL BUSINESSES

  • The IDC has established a R300-million Covid-19 Small Industrial Finance Distress Fund to assist qualifying IDC clients, as well as new clients, that have been negatively affected by the Covid-19 pandemic. The fund offers concessionary finance to cover their short-term operating costs.
  • The Covid-19 pandemic is likely to have a negative economic impact on small industrial businesses, including metals and plastics manufacturers, food processing companies, clothing and textile makers, as well as small tourism operations.
  • Many companies in the industrial sector have seen cash flows significantly eroded due to the lockdown restrictions, hence the need for such a fund to assist businesses in distress at this time.

 

WHO MAY APPLY FOR THE DISTRESS FUND?

 

Any viable small industrial business with strong business fundamentals that finds itself momentarily in distress as result of the Covid-19 pandemic may qualify for funding, provided it meets the following criteria:

  • It is an existing small business with a trading history of more than 12 months
  • Its annual turnover/revenue does not exceed R100-million
  • It is a registered business operating within the borders of South Africa
  • It has a business plan showing a clear turnaround strategy within the next 36 months

SECTORS COVERED

The fund is open to manufacturers, assemblers, and other value-added services in the following sectors:

Agro-processing and Agriculture

Chemicals, Medical & Industrial Mineral Products

Industrial Mineral Products

Tourism

Clothing and Textiles

Wood and Furniture Products

Automotive and Transportation

Basic Metal Producers

Machinery and Equipment

ICT Services and Business Process Outsourcing (BPO)

Energy and Infrastructure

FINANCING FACILITIES

 

The following financing facilities are available:

  • Revolving credit facilities
  • Working capital facilities (limited to 36 months)
  • Guarantees
  • Asset-based finance facilities linked to the turnaround plan

 

EXCLUSIONS

 

  • Financing for normal expansions
  • Refinancing of existing facilities
  • Share buy-backs
  • Payment of non-operational expenditure

 

TERMS OF FACILITY

 

  • Prime less 3% for qualifying enterprises
  • Minimum loan size of R1-million with a maximum of R15-million per client
  • Repayment terms up to a maximum of 60 months

 

HOW TO APPLY

 

Contact your nearest regional office.

TOGETHER, LET’S FIGHT COVID-19

TO SAVE LIVES – AND JOBS