Finance and Economic Opportunities

1. What was the total expenditure of the fund between September 2020 and January 2021?

R38 413 224,00.

2. What criteria were followed to allocate the funds?

Qualifying criteria were applied to both formal and informal businesses to be considered for funding.

Formal businesses must comply to the following qualifying criteria:

1. Tax compliant at the time the application is submitted.
2. Formally registered or incorporated e.g. with the Companies and Intellectual Property Commission (CIPC).
3. Classified as a micro or small enterprise in terms of the National Small Enterprises Act (Act 102 of 1996 as amended) - https://www.gov.za/sites/default/files/gcis_document/201903/423041gon399.pdf.
4. In formal existence for more than 2 years.
5. In good financial standing pre-COVID -19 (as at 29 Feb 2020).
6. Operating in the Western Cape.
7. 100% South African owned.
8. Able to demonstrate how the business was negatively affected by the COVID-19 pandemic.

Informal businesses must comply to the following qualifying criteria:

1. 100% South African owned.
2. Operating in the Western Cape.
3. In possession of a valid municipal trade permit to trade.
4. Operational at the time of applying for assistance.
5. In possession of an active bank account in the applicant’s name.
6. Able to demonstrate how the business was negatively affected by the COVID-19 pandemic.
7. Employ at least one person in addition to the owner (the Department reserves the right to request supporting documents to substantiate employment figures submitted).
8. Although tax registration is not a qualifying criterion when applying, applicants (business owners) are encouraged to register with SARS. No funds will be disbursed to business owners that are not registered with SARS.

3. (i)       How many businesses were funded?

Provision was made for 257 businesses to receive funding. Of that, 246 businesses have received funding to date, with the remaining businesses still being processed.

(ii)      How much did each business receive?

Please refer to Annexure 1 attached.

(iii)     What are the geographical areas of the businesses?

The businesses are spread across the City of Cape Town, Garden Route, Overberg District, West Coast District, Cape Winelands and Central Karoo.

(iv)     What is the gender of the business owners?

Of the successful applicants, approximately 45 percent of the businesses are women-owned.

(v)      What are the types of business that were funded?

The successful businesses are represented in the following economic sectors:

• Finance and business services
• Catering, accommodation, and other trade
• Manufacturing
• Construction
• Wholesale trade, commercial agents and allied services
• Retail and motor trade and repair services
• Community social and personal services

The businesses include, but are not limited to construction, hospitality, auto body repairs, early childhood development centres, restaurants, joinery, hair salon, vehicle maintenance, accounting/financial/consulting services, guest houses and transport companies.

4. What is the number of small businesses that closed down in the Western Cape between September 2020 and January 2021?

There are no official statistics available reflecting the number of businesses that closed in the Western Cape between September 2020 and January 2021.