A programme to provide financial support to formal, small enterprises affected by the April floods in both KwaZulu-Natal and the Eastern Cape has been implemented.

  

The proposed programme will focus on uninsured and underinsured formal small businesses and small enterprises that need funding for certain working capital, including stock, equipment, furniture, fittings, tools, machinery replacement and repairs - provided it is below the funding threshold.

Applications can be made online on https://bit.ly/3N3OG1Y​ or at any SEDA branch. Applications close on 13 May 2022.

The programme is an initiative of the Small Business Development and the Small Enterprise Development Agency (SEDA) together with the Small Enterprise Flood Agency (SEFA).

The financial package is structured at a maximum value of R2 million per small enterprise and consists of funding at 100 percent non-repayable grant administered by SEDA directly. The minimum application amount will be for R10 000 and the maximum application considered for all line items combined will be for R2 million.

Small enterprises that apply will need to meet conditions for eligibility of the programme. This would include the small enterprise being able to demonstrate that they have been negatively affected by the recent floods via proof of a South African Police Service affidavit or police statement, must be a registered legal entity in South Africa (CIPC), be 100 percent owned by South African citizens, have been in operation as of 30 March 2022, provide three months bank statements to prove operations, and have a valid tax clearance certificate or pin.

 

Informal businesses will be excluded as there is a dedicated package for them as well as businesses that require assistance with repair of property and infrastructure. Working capital requests that do not involve procurement of goods, that is cash on hand, such as rental, salaries etc will be excluded.

Meanwhile, eThekwini Municipality has noted with concern the circulation of a public liability insurance claim form for the recent flood disaster. The Municipality would like to clarify that the form is not for KwaZulu-Natal disaster relief and is a misrepresentation of the City’s relief efforts.

Chief Financial Officer Sandile Mnguni said: “EThekwini does not have cover for the public against natural disasters. Only assets belonging to eThekwini Municipality are covered in terms of the Self Insurance Policy. We appeal to residents to stop sharing information that is unverified.”

Residents who have been affected by the floods and have insurance cover are encouraged to approach their insurance companies to submit their claims.