Covid-19 lockdown: Here Is What Business Owners Need To Know
UPDATED AS INFORMATION COMES IN: Shout out to all the key workers and the front-line workers still operating to help us through these challenging times.
I’d be lying if I said I haven’t had days when I'm wondering what to do with myself during this lockdown. I don't always want to watch TV or read a book or work or exercise. And more than anything, I don't want to try out your pancake or magwinya recipes that you all have been posting on Instagram.
Now that is out of the way, here is a comprehensive collection of resources to help South African businesses survive these crazy times.
A car or driver's licence that expires during Covid-19 lockdown will remain valid. Those with expired licences will have another 30 days to renew the documents after lockdown.
Insurance
South African insurance companies have started offering Covid-19-specific cover, and some are actively advertising this as a benefit to those who have international travel plans. If you have a mild case of Covid-19, big medical aid schemes will pay for testing – and you are definitely covered for the most common way it goes bad.
You see, we are a social species, and the truth is, we need each other to survive. All of the technology that exists has not removed our need for human interaction. During self-isolation, it's important for all of us to stay in contact to connect with yourself or loved ones. This can be as simple as phoning a friend for a chat, sending someone an email, or joining in with a discussion via social media. Reaching out to a friend has been shown to be better for your mental health than having a glass or two of wine in a bid to block out your worries. it is important to remember that if you feel self-isolation is having a very negative impact on your mental health, you should seek professional advice.
SELF-QUARANTINE VS. SELF-ISOLATE VS. Social Distancing
Is there a difference? Technically, yes. In theory, the act of making sure you are not in contact with others is the same, but the Center for Disease Control (CDC) defines the two slightly differently. Self-isolating is for people who have already been infected with the virus and are ill. Self-quarantining is for those who may be ill and need to keep themselves separate from others on the chance they become sick over the incubation period.
Is there a difference? Technically, yes. In theory, the act of making sure you are not in contact with others is the same, but the Center for Disease Control (CDC) defines the two slightly differently. Self-isolating is for people who have already been infected with the virus and are ill. Self-quarantining is for those who may be ill and need to keep themselves separate from others on the chance they become sick over the incubation period.
Now that is out of the way, here is a comprehensive collection of resources to help South African businesses survive these crazy times.
A car or driver's licence that expires during Covid-19 lockdown will remain valid. Those with expired licences will have another 30 days to renew the documents after lockdown.
Evictions
Justice Minister Ronald Lamola announced that no evictions will be carried out during the lockdown. The special government gazette issued out following the growing spread of the pandemic states that evictions will be suspended for the remainder of the 21-day period.
“All evictions and executions of attachment orders, both movable and immovable, including the removal of movable assets and sales in executions is suspended with immediate effect for the duration of the lockdown.”
UIF
The Unemployment Insurance Fund (UIF) will compensate affected and eligible workers through its existing Illness and Reduced Work Time benefits. The Department of Employment and Labour has a guide for employers and declaration forms available on its website.
“All evictions and executions of attachment orders, both movable and immovable, including the removal of movable assets and sales in executions is suspended with immediate effect for the duration of the lockdown.”
UIF
The Unemployment Insurance Fund (UIF) will compensate affected and eligible workers through its existing Illness and Reduced Work Time benefits. The Department of Employment and Labour has a guide for employers and declaration forms available on its website.
South African insurance companies have started offering Covid-19-specific cover, and some are actively advertising this as a benefit to those who have international travel plans. If you have a mild case of Covid-19, big medical aid schemes will pay for testing – and you are definitely covered for the most common way it goes bad.
The Council for Medical Schemes said all medical schemes are required by law to pay for the diagnosis, treatment and care costs for this condition in full, irrespective of plan type or option.
Spaza Shops
All spaza shops can stay open, informal fruit vendors can now also trade provided they have a permit. Government also wants to provide spaza shops with seed capital and money to buy stock. Pparticipating ipants will get bulk buying discounts from pre-selected wholesalers as well as access to basic business tools, including speed points. They will also get business support and book-keeping assistance. To access the fund, businesses are required to register on the SMME South Africa platform.
Business
Employers who have had to close their businesses due to the lockdown, and can’t afford to pay their employees, may apply for money from government to help pay salaries. The Covid-19 Temporary Relief Benefit will cover a period of up to three months – during the lockdown, and also afterwards, if companies continue to struggle with their cash flow. Companies who are struggling to pay salaries due to the coronavirus crisis, need to report this per email to Covid19ters@labour.gov.za. They will receive an automatic response outlining the application process. Each company will be judged on its own individual merits before the Covid-19 Temporary Relief Benefit will be extended to them. The Unemployment Insurance Fund has urged companies to file for assistance on behalf of employees. Call 012 337 1997 for help.
Banking
Is your business affected by COVID-19?
Standard Bank clients earning R7 500 or less will automatically qualify for a three-month payment holiday on all personal account-related debt. People earning more than R7 500 will be able to qualify for the instalment relief by contacting the bank. That means customers can hold off on paying home loans, car loans, other asset finance, short term loans, and credit cards.
Digital bank TymeBank announced that its SendMoney service has now been made 100% free during this difficult period. TymeBank customers can send cash to anyone with a valid South African cellphone number - they don't even need a bank account. The recipient will get an instant SMS with a voucher number with which they can immediately withdraw cash at any Pick n Pay or Boxer till point nationwide.
Is your business affected by COVID-19?
1. Rupert's Loan.
Entrepreneurs (formal sole proprietors) can get R25 000 in cash – which is a once-off grant, and doesn’t have to be repaid.
Close corporations, companies, and trusts can get the cash payment of R25 000, plus a low-interest loan with a 12-month repayment holiday. Loans of between R250 000 and R1 million are available. Your businesses needs to be tax compliant and have to show that they were viable before the novel coronavirus hit. Payouts will be made within seven days of application, if approved. You can apply via Sukuma Relief fund which is administered by Business Partners.
Who can apply? Businesses which are negatively affected, directly or indirectly, due to the Coronavirus pandemic can apply for this fund. Priority will be given to businesses owned by Women, Youth and People with Disabilities. The business must have been registered with CIPC by at least 28 February 2020 and must be 100% owned by South African Citizens. They should have 70% of South African employees. Be registered and compliant with SARS and UIF. Seda will assist micro-enterprises to comply and request for assistance must be emailed to debtrelief@seda.org.za. For more info click here.
3.Tourism Relief Fund
The Tourism Relief Fund is officially opened for applications. The Tourism Relief Fund provides once-off capped grant assistance to Small Micro and Medium-Sized Enterprises (SMMEs) in the tourism value chain to ensure their sustainability during and post the implementation of government measures to curb the spread of COVID-19 in South Africa.
Capped at R50 000 per entity, grant funding can be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure cost items.
Categories eligible to apply for the Tourism Relief Fund include the following:
Apply for funding: Online application form
The Tourism Relief Fund isn’t the only option for tourism businesses. SATSA published a handy overview of the options available on its COVID-19 microsite.
3. Facebook
The company is offering USD 100M in cash grants and ad credits to help during this challenging time. Up to 30,000 eligible small businesses in more than 30 countries where we operate will be able to receive the grant. To be eligible to apply, you must:
3.Tourism Relief Fund
The Tourism Relief Fund is officially opened for applications. The Tourism Relief Fund provides once-off capped grant assistance to Small Micro and Medium-Sized Enterprises (SMMEs) in the tourism value chain to ensure their sustainability during and post the implementation of government measures to curb the spread of COVID-19 in South Africa.
Capped at R50 000 per entity, grant funding can be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure cost items.
Categories eligible to apply for the Tourism Relief Fund include the following:
- Accommodation establishments: Hotels, Lodges, Bed and Breakfast (B&B’s), Guest Houses and Backpackers.
- Hospitality and related services: Restaurants (not attached to hotels); Conference venues (not attached to hotels); Professional catering; and Attractions
- Travel and related services: Tour operators; Travel agents; Tourist guiding; Car rental companies; and Coach Operators.
Apply for funding: Online application form
The Tourism Relief Fund isn’t the only option for tourism businesses. SATSA published a handy overview of the options available on its COVID-19 microsite.
3. Facebook
The company is offering USD 100M in cash grants and ad credits to help during this challenging time. Up to 30,000 eligible small businesses in more than 30 countries where we operate will be able to receive the grant. To be eligible to apply, you must:
- Have between 2 and 50 employees
- Have been in business for over a year
- Have experienced challenges from COVID-19
- Be in or near a location where Facebook operates
Find out if the grant programme is available in your area by clicking here.
In partnership with the Department of Trade, Industry and Competition (the dtic) the
National Empowerment Fund (NEF) will facilitate funding for black entrepreneurs to
manufacture and supply a range of medical products to help the country flatten the
curve of this deadly global virus. A total R200 million has been set aside for the
purpose, and once disbursed black entrepreneurs will be accorded a 12-month
repayment holiday to help their businesses stabilize. The loans will be offered at 0%
interest for the first year and thereafter at 2.5% per annum. The loans will be repayable
over a maximum term of 60 months. This is in line with the NEF’s mandate as a
development financier to champion inclusive growth while responding innovatively to
the challenges facing the country. Applicants may reach the NEF on
covidfund@nefcorp.co.za and on 011 305-8080 for this emergency funding.
The bank has a Coronavirus Business Interruption Payment Scheme, which will provide loan instalment relief to your business for 90 days. This scheme will launch on the 1st of April and strives to support small and medium-sized business with a payment holiday for 90 days.
6. FNB
6. FNB
The bank has implemented a COVID-19 cashflow relief measures to provide relief to individual customers whose financial stability has been impacted by COVID-19.This will assist customers who demonstrate sound banking behaviour, such as having honoured their repayments to the bank on a consistent basis prior to COVID-19. FNB encourages its customers whose income has been affected by the virus to apply for relief on its banking application through the Covid-19 icon.
6. Absa
The bank has introduced a comprehensive customer, business and corporate relief programme. Eligible customers in need of short-term liquidity relief will qualify for the relief programme that applies to Absa's credit products. These relief measures apply to Absa's corporate, wealth, business bank, private bank and retail customers.
If you think you have the virus, phone the National Institute for Communicable Disease on 0800 029 999 for directions on where to be tested. You can also use the official Whatsapp platform for information and advice, by sending "hi" to 060 012 3456.
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