Mopy_ZA
AVForums Veteran
Seeing as how the banks and insurance companies aren't really saying much, the government has come in with the Covid Small Business Relief Fund (aka Sukuma).
Here's a brief overview of the structure:
- Sole proprietors qualify for a 25000 Rand non-repayable once off grant.
- Companies, CC's & Trusts qualify for a 25000 non repayable grant, plus a repayable loan ranging between 250 000 and 1 milliion rand.
- The loan will be interest and repayment free for twelve months, and then interest will be charged at the prime rate from month 13.
- The loan repayment period is 60 months, no security is required.
- If your application is approved (and there are plenty of supporting documents needed!) your money gets paid to you in 7 days from dat of approval.
Apply here:
A Couple points that bug me:
You have to choose the loan amount you want to accompany the 25 K grant. That's a bit sketchy (IMO) . They can easily check your monthly running costs and provide you with 2 motnhs of cover. Also, they could maybe throw in a percentage of lost profit (which they could easily check from your statements).
You have to provide a motivational letter saying why and how your business has been impacted by the covid shutdown. :walled: This is making the process highly subjective. It should be a logical, prescribed procedure such that every business gets the money they need.
Lastly, what happens when the money runs out? Is this like a first come, first served type deal? That does not seem right.
What are your thoughts? Do you think this will give small business enough incentive to stop laying people off or, forcing people to give up leave days? Those business that already have loans and debt to repay, might find themselves burdened with yet another loan to repay in the long term.
Here's a brief overview of the structure:
- Sole proprietors qualify for a 25000 Rand non-repayable once off grant.
- Companies, CC's & Trusts qualify for a 25000 non repayable grant, plus a repayable loan ranging between 250 000 and 1 milliion rand.
- The loan will be interest and repayment free for twelve months, and then interest will be charged at the prime rate from month 13.
- The loan repayment period is 60 months, no security is required.
- If your application is approved (and there are plenty of supporting documents needed!) your money gets paid to you in 7 days from dat of approval.
Apply here:
A Couple points that bug me:
You have to choose the loan amount you want to accompany the 25 K grant. That's a bit sketchy (IMO) . They can easily check your monthly running costs and provide you with 2 motnhs of cover. Also, they could maybe throw in a percentage of lost profit (which they could easily check from your statements).
You have to provide a motivational letter saying why and how your business has been impacted by the covid shutdown. :walled: This is making the process highly subjective. It should be a logical, prescribed procedure such that every business gets the money they need.
Lastly, what happens when the money runs out? Is this like a first come, first served type deal? That does not seem right.
What are your thoughts? Do you think this will give small business enough incentive to stop laying people off or, forcing people to give up leave days? Those business that already have loans and debt to repay, might find themselves burdened with yet another loan to repay in the long term.
