If you’re an entrepreneur and wondering how to get finance to start your business, there are multiple options available to you. One of the entrepreneurial funding options is getting a government grant for small businesses to help you grow your business.
Government grants or funding received by the government to offer you financial support for business. These funding do not need to be repaid and the strict guidelines for applications. Government funding is linked with efforts such as black economic empowerment, job creation and developing the economy. There are various government grants available in South Africa, including:
- Automotive Investment Scheme (AIS)
- Black Business Supplier Development Programme (BBSDP)
- Clothing and Textile Competitiveness Improvement Programme (CTCIP)
- Critical Infrastructure Programme (CIP)
- Film Incentive Programme
SEFA is the Small Enterprise Finance Agency and it was established in 2012. As a result of the merger between South African Micro Apex Fund (SAMAF), Khula Enterprise Finance and business activities of the Industrial Development Corporation (IDC). SEFA provides funding to small and micro businesses throughout South Africa that need funding in order to contribute to the developing economy.
This organisation linked small businesses amounts that range between R500 and R3 million and may do this in three ways. Straight to the business owner, via retail finance intermediaries, and through banks using credit guarantee schemes such as Khula.
The main goal of SEFA is to help develop and sustain micro, small and medium businesses throughout South Africa to help improving local economies and provide job opportunities. Finance will be available to micro, small and medium enterprises and co-operatives through bridging finance, revolving loans, asset finance, working capital and term loans.