p40 :: Industry
Queues outside food stores to minimise contact between people became a feature of the time of corona. Photo: Carin Hardisty
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Several aid packages have been put in place by government and private individuals to assist businesses in distress due to COVID-19
Where to find help
o beating about the bush: the COVID-19 pandemic will have a devastating impact on retailers and their suppliers, especially small businesses who might not have a financial cushion to deflect some of the income blow from the lockdown and social distancing. There were, however, various relief packages announced, especially for small, medium and micro (SMME) enterprises. These were announced as Sports Trader was preparing to go to print and we would therefore urge you to visit the Home page of the government website with links to updated information on COVID-19 and relief funding, which are https://www.gov.za/welcome-officialsouth-african-government-online-site.
Debt Relief Finance Scheme This is administered by the Department of Small Business Development (DSBD) and only applies to SMMEs (see definition right). This could also provide assistance to acquire raw material, pay labour and other operational costs. An online application form will be published on the website www.dsbd.gov.za from April 2. Qualifying criteria: • Only SMMEs that are registered on the department’s database will be considered. Please register your business on https://smmesa.gov.za. • Businesses must prove that they were directly or indirectly negatively affected by COVID-19 measures — NOT businesses that had been in distress before the outbreak. • Must supply supporting documents, Sports Trader :: 2020 Autumn
e.g. that you were registered with CIPC by 28 February 2020, FICA documents, certified IDs of directors, three months’ bank statements and latest annual financial statements, a business profile and 6 months cash flow projections. • Company must be 100% owned by South African Citizens and employees must be 70% South Africans. It is untrue that the company needs to be 51% black owned. • Company must be registered and compliant with SARS and UIF.
To qualify for the specific COVID-19 relief funding, companies must show proof that their business is in distress due to the virus. • If applying for rental relief you must provide a copy of the lease agreement or proof of ownership. If applying for payroll relief the details of employees and their banking details is needed. • Priority will be given to businesses owned by women, youth and people with disabilities. The department advises SMMEs to use their alternative email at info@dsbd.gov. za or call their hotline number 0860 663 7867. Seda, which promotes small businesses, will assist micro-enterprises to comply (email debtrelief@seda.org.za), but small and medium enterprises must assure their own compliance.
Rupert and Oppenheimer fund These two prominent families each donated R1-bn to assist small businesses and their employees that have been financially impacted by COVID-19. The fund will be administered by Business Partners Limited — of which Remgro owns 43% — but at the time of going to print details of how and where to apply for assistance had not yet been published.
COVID-19 TERS The COVID-19 Temporary Relief Scheme 2020 (TERS) UIF benefit from the Department of Labour aims to assist employers who are unable to pay their workers’ full salaries during the lockdown. They will electronically process applications received via email covid19ters@ labour.gov.za. Applicants should then receive an automated reply outlining the steps and requirement details. A PDF document, Easy-Aid Guide for
Who qualifies as a SMME? MEDIUM, small and micro businesses are defined by Government as follows: medium businesses have 51-250 employees, small 11-50 and micro 0-10 employees. The maximum annual turnover threshold differs from industry to industry, e.g.: • Manufacturing: medium R170-m, small R50-m, micro R10-m. • Retail: medium R80-m, small R25-m and micro R7.5-m. • Wholesale: medium R220-m, small R80-m and micro R20-m. • Transport, storage and communications: medium R140-m, small R45-m, micro R7.5-m.