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.