Articles
Private Financial Relief Funds

1. Sukuma Relief Fund
2. Oppenheimer Family South African Future Trust
3. Bank Finance Options

1. Sukuma Relief Fund

Current Status: Temporarily closed due to high volumes of applications.

Q: What is it and who is it for?
A: R1 billion funding for South African SMEs from the Rupert Family and Remgro.

For formal sole proprietors, the fund offers a grant of R25,000 per qualifying business to cover overheads. Close corporations, companies, and trusts can apply for financial aid in the form of an unsecured interest-bearing loan ranging from R250,000 to R1 million, along with a non-repayable grant of R25,000 per qualifying business.

Q: How does the funding and repayment work?
A: Funding will be provided as a grant, meaning no repayment obligations. The loan portion will be interest-free for 12 months, with no repayment due during this period. Larger businesses will have a loan component that must be repaid in the future.

Q: Do I qualify?
A: To qualify, businesses must provide evidence of financial activity prior to the COVID-19 outbreak, be tax compliant, and comply with necessary regulations.

Q: How do I apply?
A: Visit business partners for application forms.

2. Oppenheimer Family South African Future Trust

Current Status: You can apply directly through your bank.

Q: What is it?
A: The Oppenheimer family has made R1 billion available to South African SMEs to help those suffering from short-term cash flow constraints continue operations during the crisis while retaining employees. For more information, visit Oppenheimer Future Trust.

Q: How does it work?
A: The funding will be distributed through the South African Future Trust (SAFT) as interest-free loans paid directly to employees.

• Employees will not be liable to repay the money, but the company will be.
• There is no minimum monthly payment requirement; repayment only needs to occur at the end of the loan period.
• The loan will incur no interest for five years (60 months) and is subordinated to pre-existing loan agreements.
• If the business cannot repay the loan, SAFT will work to create sustainable repayment plans.
• Employers will apply for the benefit of their employees; employee recipients carry no financial liability, and payments made by SAFT will be tax-free.

Q: Do I qualify?
A: Funding is available for businesses that were financially sustainable before the COVID-19 pandemic and that bank with Absa, FNB, Nedbank, or Standard Bank—all of which have waived their normal fees for the SAFT scheme. Eligibility criteria include:

• Not earning more than R25 million per year.
• Demonstrating the impact of COVID-19 on operations.
• Being in business for at least 24 months.
• Having accounts in good standing as of February 29, 2020.
• Being unable to pay or retain permanent employees.

Q: How do I apply?
A:

1. SMMEs must contact their bank and request access to SAFT support.
2. The bank will redirect you to a portal to fill in your details, including your company name, VAT number, and PAYE number.
3. You will then list employees to be supported, providing their ID numbers for verification.
4. The bank will source employees' bank details, and payments will be made to their accounts shortly thereafter.
5. Employees will receive R750 a week for 15 weeks.

Prepare your application by gathering the following information:

• Company registration number (if applicable).
• Master’s reference number (for trusts).
• Identity number and business address (for sole proprietors).
• Names and ID numbers of all directors/members/trustees/sole proprietors.
• PAYE number (if applicable).
• Income tax number.
• List of full-time employees receiving relief, including full names, ID numbers, bank account details, and contact information.

3. Banks

Several South African banks have announced payment relief measures to assist small businesses during the COVID-19 crisis. Below are the options offered by various banks:

• Standard Bank: Offers a range of support options, including a payment interruption scheme on business loans and a three-month installment relief for personal loans of small business owners. If ineligible, contact the bank for further assistance.
• Absa Bank: Launched a payment relief program for consumer and business banking customers, offering bespoke solutions and waiving additional administration fees.

First National Bank: Offers qualifying customers installment cash flow relief, preferential interest rates, no fees on COVID-19 relief interventions, and individualized bridge facilities for those in need.