Update On SMME Debt Relief Financing Scheme
The aim of the Scheme is to assist SMMEs with working capital during the
period when economic activity was negatively affected due to the Covid-19
national disaster.
Since the opening of Scheme, sefa received 35 865 applications of which 14
451 were fully completed whereas 21 414 were incomplete and they were
referred to SEDA to assist the applications. Of the 14 451 complete
applications, sefa has approved 1 497 applications worth R513 million.
According to the sefa assessment, the balance of the 12 954 complete
applications require an estimated budget of R4.4 billion but a bulk of the
applications require assistance with payment of salaries to the total value
of R3.6 billion. In this regard, the DSBD has entered into agreement with
the UIF to ensure that SMMEs that previously did not qualify due to non-
compliance can be covered by the UIF provided they agree to an
acknowledgement of debt as well as payment terms with the UIF. Furthermore,
this Agreement ensures that SMMEs that had already applied for payroll
assistance through the SMME Debt Relief Finance Scheme do not need to
re-apply with the UIF but their applications will be forwarded directly to
the UIF.
In addition, the assessment has also indicated that applications for a total
value of R800 million are from business that if supported to get back to
work, they will be able to meet their own financial obligations.
The Department of Small Business will publish the names of the SMMEs funded during Window-1 on all its
websites as from Friday, 29 May 2020 and the demographic spread include Rand
values per demographic spread.
More small business funding: Applications for the Window-2 of the Department
of Small Business Development‘s SMME Debt Relief Financing Scheme, will be
available online on https://smmesa.gov.za/ from Wednesday (27 May). The
following schemes are available for qualifying entrepreneurs to apply: (a)
Small-scale bakeries and confectioneries support scheme; (b) Informal and
small-scale clothing and textile support scheme (c) Automotive Aftermarkets
Support.
COVID-19 Temporary Employer/Employee Relief Scheme
About the fund: South African employees can receive financial support
from the Temporary Employee/Employer Relief Scheme (TERS) during the
pandemic.
Update: On 18 May 2020, the Unemployment Insurance Fund (UIF), an
entity of the Department of Employment and Labour, announced it has
processed and paid COVID-19 TERS relief payments to the tune of R748 815
094.20 benefitting 149 263 workers represented by 9 362 employers.
This means that during the lockdown a total number of 2 551 236 workers have
been given relief, which may be in lieu of or a top up to their salaries.
The total amount disbursed since April 16, 2020 has now topped R14-billion
(R14 079 099 409.20).
According to the UIF Commissioner, Teboho Maruping, with all the necessary
information and documents furnished, the fund is now paying at 24 hours
after the claim is made at best or 48-hours at worst.
The Department of Employment and Labour Minister, Thulas Nxesi told ENCA
that they have now started paying workers directly to their bank accounts
not through employers only.
For more info: log on to the website to get further information on benefits
www.uifecc.labour.gov.za/covid19 or reach the UIF on the toll-free number 0800
030 007.
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