Rupert’s R1-billion business fund is now open – How to apply

SilverCode

Senior Member
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Feb 26, 2004
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809
So the repayments on the loan go back into the trust, which the family say they are not going to reclaim. So what is the long term goal of the trust? I can't imagine it would make sense to continue the trust in its current form after COVID-19 because struggling businesses would just be able to approach a bank for a normal loan.

Have they made any sort of mention of what the plan is, or are they figuring it out as they go along?
 

Fulcrum29

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Jun 25, 2010
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So the repayments on the loan go back into the trust, which the family say they are not going to reclaim. So what is the long term goal of the trust? I can't imagine it would make sense to continue the trust in its current form after COVID-19 because struggling businesses would just be able to approach a bank for a normal loan.

Have they made any sort of mention of what the plan is, or are they figuring it out as they go along?

The repayments ensure that trust continues in supporting other businesses in need. It is looking at beyond COVID-19.

EDIT:


How the funding will work
Business Partners MD Ben Bierman said they have been working hard to put guidelines and systems in place to ensure the funding reaches businesses that need it most.

The funding will be made available to smaller businesses in the form of a grant, which means there will be no repayment obligations.

For larger businesses, there will be a loan component which will have to be repaid at some point in future.


The initial interest-free period, where no repayment has to be made, will be one year. Bierman said they hope the major impact of the coronavirus outbreak would have subsided by then.

“Hopefully by that time businesses will return to cash flow positive and profitability, which will make it possible for them to repay some of the money,” he said.

Bierman made it clear that the R1-billion pledge by the Rupert family is a donation, and that none of the money will go back to the family.

He added that the objective is to administer the donation in a way that will retain capital in the trust after the COVID-19 crisis is over.

I don't know their exact criteria, but grants may be abused so there must be risk mechanisms involved in the agreement.
 

Sapphiron

Centadel
Company Rep
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Jan 29, 2004
Messages
2,423
So the repayments on the loan go back into the trust, which the family say they are not going to reclaim. So what is the long term goal of the trust? I can't imagine it would make sense to continue the trust in its current form after COVID-19 because struggling businesses would just be able to approach a bank for a normal loan.

Have they made any sort of mention of what the plan is, or are they figuring it out as they go along?

Its an unsecured loan, so if the business gets the assistance and still fails, the money is lost to the fund. Given how many marginal businesses will not be able to recover from the next few months of recession, many loans will never get repaid. At least it keeps some salaries and supplier payments going in the meantime.
 
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