SMEs and MIDCAP Companies

Home > SMEs and MIDCAP Companies

SMEs and

MIDCAP COMPANIES

FUND HAS BEEN FULLY UTILISED

OBJECTIVES

To assist SMEs and MIDCAP companies to access loan financing for CAPEX, medium and long term working capital.

Qualifying Criteria

  • Application must meet IDC and EIB mandated sectors;
  • Available to SME and MIDCAP companies. MIDCAP means companies that have up to 3000 employees (full time equivalent);
  • Funding provided for CAPEX and medium to long term working capital;
  • Final Beneficiary (company) and project location must be South African;
  • Total cost of a project must not exceed R450 million;
  • Only eligible to Autonomous Enterprises, where the enterprise does not hold 25% or more of the capital or voting rights in one or more other enterprises and no enterprise has a stake of 25% or more of its capital or voting rights;
  • Exempted Investors may hold up to 50% of the capital or voting rights but do not exercise a dominant influence. Exempted Investors are public investment corporations, venture capital companies and business angels, universities, non-profit research centers, institutional investors including regional development funds, autonomous local authorities with an annual budget of less than EUR10 million and fewer than 5 thousand inhabitants;
  • EIB approval required before drawn down of the Funds’ facility; and
  • Drawdown conditions apply.

Instruments and Pricing

  • Loans;
  • Minimum of R1 million and Maximum of R120 million per transaction;
  • Normal IDC Risk pricing less 0.3%; and
  • Aimed at transactions with longer repayment periods (8-12 years). Shorter periods may be considered on a case by case basis.

OTHER

SCHEMES