Finance and Economic Opportunities

1. How much has been allocated to this fund?

 

Financial Year	Allocated funds
2019/20	R19 247 584
2020/21	R12 532 093
2021/22	R27 708 092.80

2. What are the criteria for applicants?

The SMME Booster Fund is a product designed to provide financial support to organisations that specialise in growing and developing SMMEs. The following qualifying criteria was applied (as extracted from the published Call for Proposals):

1.         Qualifying criteria and compulsory supporting documents for the Business Development Support and Access to Market Categories

1.1.       The qualifying criteria listed below will be strictly applied and compulsory documents must be submitted as part of the application process.

1.2.      The organisation must be in formal existence (formally registered or incorporated) for more than five years. Company registration documents or documents of incorporation (NPO/NPC Registration Certificate, Partnership Agreements, Sole Proprietor Tax Certificate) clearly identifying the Director/s of the company or organisation must be submitted;

1.3.      The organisation must be tax compliant at the time of application and at the time of signing an agreement with the Department;

1.4.      The organisation must have obtained an unqualified audit opinion during its latest financial period. Audited Annual Financial Statements for the two most recent years (the guidelines in the Companies Act will be strictly applied) must be submitted;

1.5.     The project or programme that assistance is being sought for must be in existence for three years or more;

1.6.     The value of funding requested from the Department must not be less than R2 million;

1.7.      The organisation must demonstrate an own funding contribution of 25% or more of the requested amount. A signed letter by the CEO / CFO or similar executive authority confirming value of co-funding available for the implementation of the proposed project must be submitted; and

1.8.      The project or programme must exclusively benefit SMMEs that are based and operating in the Western Cape.

2.         The following costs will not be considered for support from the SMME Booster Fund:

2.1.      requests seeking funding for own operational expenditure not directly associated with the proposed project (e.g., salaries, rent, insurance, accountant, or audit fees etc.).

2.2.      project management fees – no project management or project administration fees will be paid for.

3.         SMME Infrastructure Support (Western Cape Municipalities only)

3.1.      The qualifying criteria listed below will be strictly applied and compulsory documents must be submitted as part of the application process.

3.2.      The organisation must have obtained an unqualified audit opinion during its latest financial period. Audited Annual Financial Statements for the most recent year must be submitted;

3.3.      The value of funding requested from the Department must not be less than R1 million.

3.4.      The organisation must demonstrate an own funding (financial or other quantifiable contribution or a combination) contribution of 20% or more of the requested amount. A signed letter by the Accounting Officer confirming the value of co-funding or other quantifiable contribution available for the implementation of the proposed project;

3.5.      A signed letter by the Accounting Officer listing and confirming that the required municipal approvals have been secured.

4.         The following will not be considered for support from the SMME Booster Fund:

4.1.      requests seeking funding for own operational expenditure not directly associated with the proposed project (e.g., salaries, rent, insurance, accountant, or audit fees etc.)

4.2.      project management fees – no project management or project administration fees will be paid for.

3. For which financial years has funding been made available for this fund?

 

See answer to (a) above.

4. How does his Department plan to create awareness about or market the fund to SMMEs in the Western Cape?

The Department has utilised various mediums and platforms to create awareness of the SMME Booster Fund to potential applicants.

The Department followed a public participation process by doing a Call for Proposals (CFP). The CFP was advertised in the print media (Sunday Times, the Business Day, Die Burger) as well as the Western Cape Government social media channels (Facebook and Twitter). Engagement included a public briefing session to invite enquiries from potential applicants prior to the submission of proposals.

In addition to the paid for marketing, the Department engaged with business chambers, associations and various organisations and agencies to create awareness of this initiative.

The Department will replicate these efforts, which to date have proven to be successful.