Many measures have been put in place to curb the COVID-19 pandemic in our country
President Cyril Ramaphosa recently announced several initiatives that will support local small and medium enterprises (SMEs). We encourage you to register and/or apply for these forms of government aid that could support your business during this difficult time.
Priority will be given to companies that benefit women, youth, people living with disabilities, and black-owned businesses, but it has been made clear that all SMEs will be able to apply for some forms of funding if they meet the criteria below:
- the business must be 100% South African-owned
- at least 70% of employees must be South Africans
- recipients must be tax compliant
Businesses in the essential services category may apply for certificates on Biz Portal to continue operations during the lockdown period.
The funds announced to date include:
- Solidarity Fund: R2 billion has been specifically allocated to help small businesses and their employees who are affected by the Coronavirus pandemic. For more info click here, email email@example.com or call 0860 001 001.
- Department of Small Business Development: R500 million is available to assist SMEs in distress. Register for support here or contact the Helpline on 0860 663 7867.
- The Industrial Development Corporation and the Department of Trade, Industry and Competition has released a package of more than R3 billion for industrial funding to address vulnerable firms, and fast-track financing for companies critical to efforts that fight the virus and its economic impact. The focus is on enabling sectors that are critical to limiting the spread and immediate impact of the virus and supporting supply chains critical for the economy. For more info, click here or call 0860 693 888.
- The Department of Tourism has made R200 million available to assist SMEs in the tourism and hospitality sector, and businesses that are under particular stress due to the new travel restrictions. Specific conditions include that the businesses must have:
- an annual turnover of less than R2.5 million
- been in business for at least one year
- not been in distress before the Covid-19 disaster
- been fully registered with the CIPC and be tax compliant
For more info, click here.
Two initiatives were announced to specifically support employers and their employees. These include:
- Special dispensation: for companies that are in distress because of COVID-19. Employees will receive wage payments through the Temporary Employee Relief Scheme, and companies can thereby avoid retrenchments.
- Compensation Fund: for employees who fall ill through exposure at their workplace.
Various tax-related measures were announced:
- Businesses that are tax compliant with a turnover of less than R50 million per annum will be allowed to delay 20% of their pay-as-you-earn liabilities over the next 4 months along with a portion of provisional corporate income tax payments without penalties or interest over the next 6 months.
- SARS will fast-track the payment of employment tax incentive reimbursements from twice-annually to monthly, in order to get cash into the hands of compliant employers.
- A tax subsidy of up to R500 per month for the next 4 months for private sector employees earning below R6 500 under the Employment Tax Incentive.
For more info, visit the SARS website or contact their offices on 0800 007 277.
“You are not alone. We are with you every step of the way.” –iKhokha
We are all experiencing major changes that affect our lives due to the Covid-19 pandemic, and the impact is being felt by business owners everywhere. We want to assure you that iKhokha remains open for business, and we will continue to offer you all of our services and assistance during the lockdown period. For any queries contact our team on 087 222 7000 or email firstname.lastname@example.org
For more business support, click here.
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