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Financial support for small businesses

by Madelein
Financial support for small businesses

Main image: Barrydale Hand Weavers, purveyors of quality handwoven textiles based in the Klein Karoo received CDI Capital Growth Funds in 2020 and used these extra resources to expand its supply into South African retailers, including growing its online retail.

“Help is on the way for growing small businesses, thanks to CDI Capital Growth Fund’s aim of creating 600 new jobs by 2023”.

Despite the impact of the Coronavirus pandemic and other shocks to our economy, there are green shoots of growth in some sectors. One example is small businesses that have focussed on ecommerce and digital services. Capitalising on and funding this growth potential will be key to rebuilding the local economy.

With this in mind, small businesses that are experiencing growth or are poised for expansion in any sector and can create jobs are encouraged to apply for grant funding from the CDI Capital Growth Fund.

Funding made available

Erica Elk of the CDI.

CDI Capital is a niche emerging impact funder and a subsidiary of the Craft + Design Institute (CDI) non-profit, which has a 20-year track record of success in supporting small businesses in South Africa. As an impact funder, CDI Capital is committed to creating positive social and economic impact in the SMME sector and the South African economy.

From 2012–2015, CDI Capital Growth Fund created 464 jobs in 45 businesses with participating businesses growing their combined annual revenue by 73% – exceeding the fund’s initial targets. The current round of funding, supported by the National Treasury’s Jobs Fund, aims to support up to 60 businesses to create 600 new jobs by 31 March 2023.

The fund is poised to repeat the success it achieved in its first round of funding and has already created 447 new permanent jobs in 23 businesses in its second round of funding. CDI Capital aims to identify another 20 businesses nationally within the next three months who qualify to receive this valuable support.

“We believe that small businesses are vital to growing our economy and creating jobs – even more so post the pandemic and recent social unrest. With meaningful socially responsible investment, we can maximise the potential of local entrepreneurs, building a generation of South African innovators and a strong inclusive economy,” says Erica Elk of the CDI.

How to access the funding

Businesses can use the grant funding to unlock growth opportunities and cover needs such as advertising, marketing, communications, building & other fixed structures, equipment, machinery, materials, research & testing, professional services, and so on. Businesses can apply for an amount between R105 000 and R1 050 000, depending on how many jobs they commit to creating before 31 March 2023.

To be eligible to apply a business must:

  1. Be a South African-owned business, with the controlling interest of the enterprise (51% of the issued ordinary share capital) being held by South African citizens with a valid South African ID OR a South African Registered legal entity itself controlled by South African citizens with a valid South African ID.
  2. Operate within South Africa, including but not limited to projects, programmes or enterprises of the business.
  3. Be an existing business at least 1 year old (preference will be given to businesses that have been trading for 2 years or more) with turnover or assets above R600 000 (if this was pre-COVID-19, a business will still be eligible).
  4. Match 20% of the contribution of the Fund through their own cash contribution.
  5. Must create one job for every R21 000 grant investment, with a minimum of 5 jobs.
  6. Be tax compliant and supply a valid Tax Compliance Status (TCS).

Funding applications can only be made online via https://cdicapital.co.za/growthfund

For further information, please visit https://cdicapital.co.za or contact Ryan Rode via ryan.rode@thecdi.org.za

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