The NEF is making R200,000,000 in loans available for black entrepreneurs to manufacture and supply a range of medical products, including medical masks, sanitisers, dispensers and related healthcare products to support the healthcare sector during the COVID-19 crisis.
The requirements to qualify are, inter alia, that the business:
- is a registered legal entity in South Africa in terms of the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 or the Co-operatives Act, 2005;
- is a taxpayer in good standing with a valid tax clearance certificate at assessment as well as before the loan is disbursed;
- is a current and registered supplier with retailers and other institutions in good standing or have a purchase order/ contract/ letter of intent;
- has greater than 50% Black shareholding and management control;
- has a project with a minimum requirement of R500,000 in working capital, machinery and equipment;
- must be directly involved in the day-to-day running of the operation and must have requisite expertise in the sector; and
- is owned by black South Africans as defined by the Broad-Based Black Economic Empowerment (B-BBEE) Act.11
The fund will not service any pre-existing debt or help settle monies owed.