The Department of Small Business Development’s support scheme for spaza shops and general dealers opened on Saturday, 18 April in partnership with Nedbank.
To improve access to the scheme, the department has issued the following guidelines:
• The support scheme benefits general dealers/ traditional grocery stores in townships and villages that are 100% owned by South Africans who have the relevant licences.
• Whereas local hardware stores are also beneficiaries under this scheme, their funding package is being finalised to ensure their ability to operate, as their businesses have been included in the updated list of businesses offering essential services.
• The department has finalised an agreement with Nedbank to support spaza shops and general dealers on the back of the Khula credit guarantee scheme of the Small Enterprise Finance Agency (Sefa).
• Nedbank has availed the Nedbank Desks found in all the Boxer stores countrywide to serve as additional service points.
How to apply for support under the scheme
Any spaza shop or general dealer owner who is a South African citizen and holds a valid trading permit (including temporary), or business licence in the case of a general dealer, qualifies to apply.
The qualifying spazas and general dealer store owners must go to their nearest Nedbank Branch or Nedbank desk at Boxer stores for assistance to apply.
The following documents will be required:
• A valid South African ID document
• A valid and original municipal trading licence/ permit to trade or business licence in case of a general dealer. Copies are not acceptable. Only permits or licences issued by the municipality, and not those issued by a councillor, are valid
•The qualifying spaza shop or general dealer owner must be willing to accept assistance to register with CIPC, SARS and UIF, in the case were the owner is not already registered before approval to participate in the scheme.
• At the Nedbank branch/ desk, the owners will be assisted to register on the SMMESA database, and complete the applicable application form.
• The participating owners will be required to commit and undertake to the following:
a) To buy products on the department-approved basket of goods that will change from time-to-time, in particular products produced by South African SMMEs and cooperatives.
b) To operate a business banking account and will accept to participate in the Seda supported business management support programme, that includes assistance with inventory management and stock control, preparations of management and annual financial statements.
c) To uphold Environmental Health and Food Safety Standards and the guidelines of the Department of Health, which will include:
i. Sanitising before and after serving each customer.
ii.Disinfecting the service counters.
iii. Maintaining the applicable social distance between customers and customer and service point.
iv. No sale of counterfeit goods and stale/ expired foodstuff.
v. Not use trading spaces as sleeping quarters.
What support is available under the scheme?
• Access to working capital investment and revolving credit facility that is backed by the Khula Credit Guarantee scheme of Sefa in partnership with Nedbank.
• Business Management support that includes assistance with basic financial management with support of financial/ business graduates that will be assigned to give dedicated support to the business over a 24-month period.
• Legal compliance that includes assistance to register with CIPC, SARS and UIF, and other compliance requirements that may be necessary for participation in the scheme. For additional assistance or call 0860 663 7867 or send an e-mail to Spazasupport@dsbd.gov.za.
Additional information may be obtained from any of our official websites:
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