Finance agency targets Bay businesses
‘We believe there is great potential in this area'
LOCAL entrepreneurs with promising business plans could receive funding of up to R5-million from the Small Enterprise Finance Agency as the organisation aims to ‘entrench Sefa’s footprint’ in northern KZN.
The organisation, established in 2012 through a merger of the SA Micro Apex Fund and Khula Enterprise Finance, addressed local small business owners at a breakfast session in Richards Bay on Thursday to help iron out their financial challenges.
‘Our mandate is to promote the establishment, survival and growth of SMMEs and contribute towards poverty alleviation and job creation.
‘We believe there is great business potential in this area, especially with spinoffs from corporates benefitting the small businesses sector’, said Sefa Head of Communications, Nothemba Gquba.
‘We offer funding from R500 to R5-million.
‘The fund is based on cash flow, not on the business’s history or security issues. But to attain funding from Sefa, entrepreneurs must have a convincing business plan that shows they will make money and pay back the loan.’
Sefa Head of Direct Lending, Don Mashele, said of the 7 000 queries received, 1 000 are approved on the first review.
‘The 6 000 business falling off the table should look at why they did not get approvals.
‘It is like a school system where 1 000 learners enroll in high school, but only 900 make it to matric. We must find out what happened with the remaining 100 and see how to help them contribute to the economy.
‘We also want to ensure we do not only invest in the same places.
‘We invest around R10-million in Richards Bay, but we also want to look at businesses in other areas such Mtubatuba.’
Gquba asked businesses to ensure they fulfill the basic requirements for funding on the agency’s website (www.sefa.org.za).
Industries not eligible are manufacturing and selling of ammunition; property development; tobacco, liquor, gambling and sex trade; illegal trade; leverage buy-out funds; non-profit organisations; political organisations; persons under debt review and unrehabilitated insolvent shareholders or directors of applying entities; primary agriculture; and speculative real estate.
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