When given the choice between a loan and a grant, grant funding wins without a debate. Why? Well, you don’t need to pay the lump sum of money back like a loan requires. That’s why we explore where to find grant funding in this article.
Grant funding is money that is allocated specifically to be given to persons who match certain criteria. This grant is usually provided by an organisation, the government, or even trusts. Recipients of the grant can be individuals, businesses, educational institutions, or even non-profit organisations.
The thought of not needing to repay the amount received sounds amazing! But there is a downside to being awarded a grant. The entire grant application process takes a long time, sometimes even longer than a year.
Each grant is different and has differing qualifying criteria. Therefore, you are encouraged to carefully consider each grant before applying.
Grant Funding through the IDC
The IDC, or Industrial Development Corporation, has tailored funding products for particular areas of industry. Among these products are a variety of loans and grants.
National Youth Development Agency
The NYDA is an agency that was established solely to help South African Youth. Among their various activities, they also have a grant project. It aims to provide young entrepreneurs with an opportunity to access both financial and non-financial business development support. This means that they both benefit from a capital injection as well as mentorship and market linkage training, to name a few. The grant can be awarded to individuals, cooperatives and occasionally Community Development Facilitation Projects.
SEFDA
Sedfa, the new face of the combined Seda, Sefa and CBDA, aims to better address the shortcomings that many SMEs have experienced with funding. The agency offers both financial and non-financial resources.
Black Industrialist Scheme
The Black Industrial Scheme has been developed in response to the Black Industrialists Policy to support black industrialists through targeted and well-defined financial and non-financial interventions.
The grant is a cost-sharing grant ranging from 30% to 50% to a maximum of R50 million. The grant can be used for capital investment costs, feasibility studies towards a bankable business plan, post-investment support (to the maximum of R500 000) and business development services (to the maximum of R2 million).
National Empowerment Fund
The National Empowerment Fund (NEF) aims to assist black entrepreneurs and businesses. Through this institution, applicants can apply for grant funding from multiple funds that are dispersed by the NEF. These include:
- UMnotho Fund
- Rural, Township & Community Development Fund
- Strategic Projects Fund
- Arts & Culture Venture Capital Fund
- Tourism Transformation Fund
- Furniture Fund
- Bakubung Fund
Agro-processing Support Scheme
The Agro-Processing Support Scheme is a cost-sharing grant for the agro-processing industry. The 20%-30% cost-sharing is capped at R20 million and is also administered by the DTIC. It’s recommended that you closely follow the steps outlined on their website to apply.
Cooperatives Incentives Scheme
The Cooperative Incentive Scheme (CIS) is a 90:10 matching cash grant for registered primary co-operatives. This is a cooperative that consists of five or more members who are historically disadvantaged individuals. It is administered by the Department of Small Business Development.
Export Marketing And Investment Assistance
For any business that focuses on exports, the Export Marketing and Investment Assistance Scheme can provide them with a grant. This is mainly focused on business support to help South African SMEs explore new market opportunities at International trade fairs. The grand covers the cost of renting an exhibition space up to R50 00, return economy-class airfare, interpretation fees, and marketing materials/ It can also include patent registration in foreign markets, but this is capped at R100 000.
Black Business Supplier Development Programme
Black Business Supplier Development Programme Manufacturing Grant
R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; R200 000 for business development and training interventions on an 80:20 cost-sharing basis
Sector Specific Assistance Scheme
The Sector Specific Assistance Scheme is a cost-sharing grant for various industries. It entails R500 000 of advertising costs and publicity, R200 000 of marketing and local exhibition costs at 80:20 cost-sharing. R50 000 of the grant is pre-allocated for establishing an export council.
From the above information, it is clear that there is ample support in South Africa where you can find grant funding. Remember to read the application details carefully and ensure you meet all the requirements before submitting your application.
