South African businesses will start to receive money from Tuesday

CommonSense

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Nov 20, 2012
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How much will "Business Partners" be paid for this administration?

EDIT:
To expand a bit more on the question.
Are they being paid a Percentage of the money they distribute or are they being paid a fixed amount per transaction?
Also, will they be paid separately of the R1 billion or is their payment coming out of the same kitty?
 
Last edited:

MightyQuin

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South African businesses will start to receive money from Tuesday

Johann Rupert’s R1-billion SME fund will start to give money to businesses from Tuesday, Business Partners MD Ben Bierman said.

Business Partners is administering the R1-billion fund, called the Sukuma Relief Programme, on behalf of the Rupert family and Remgro.

Let's rather call a spade a spade here:

Closed corporations, companies, and trusts can apply for financial aid in the form of an unsecured interest-bearing loan of between R250,000 and R1 million.
 

bokka1

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The R25 000 grant is not a loan.

I have all my documents in, hopefully I can get the grant, it will help me A LOT.
 

MightyQuin

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The R25 000 grant is not a loan.

I have all my documents in, hopefully I can get the grant, it will help me A LOT.

I hope so too. If you qualify for a grant, by all means you should get it.

But companies that have lots' of employees etc. are not getting anything for free unfortunately.
 

Superjakes

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Having gone through the application process myself, I can confirm a couple of things. Firstly, Johann Rupert is getting "exposure" for this and nothing else. He has donated money to this fund. He is not in the cash loans business all of a sudden. How it is administered is another story.

So, if you are a sole trader (one man show), you qualify for a 25k grant. That is money for nothing - the catch is that you have to be compliant with SARS and all other legal requirements. Great, so far.

If you have a registered company (CC, PTY LTD, etc), you qualify for a 25k grant, linked to a loan of between 250k and 1m Randelas. So, you get 25k and borrow more. But, this is the part that most seem to not grasp. The loan is over 60 months (nothing fancy so far), repayments only start after 12 months (payment holiday) AND, (the big one) interest only starts accruing after the 12 month payment holiday. So, it is a loan, yes; but on terms that you won't get anywhere else, together with a 25k grant.

Proof of BBBEE status is nowhere in the requirements, in fact, Rupert himself made a hoo-haa about it when it was originally "leaked" that companies need to be 51% black owned to qualify. Linky

I hope this makes a bit more sense to all.
 

HunterGR

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Having gone through the application process myself, I can confirm a couple of things. Firstly, Johann Rupert is getting "exposure" for this and nothing else. He has donated money to this fund. He is not in the cash loans business all of a sudden. How it is administered is another story.

So, if you are a sole trader (one man show), you qualify for a 25k grant. That is money for nothing - the catch is that you have to be compliant with SARS and all other legal requirements. Great, so far.

If you have a registered company (CC, PTY LTD, etc), you qualify for a 25k grant, linked to a loan of between 250k and 1m Randelas. So, you get 25k and borrow more. But, this is the part that most seem to not grasp. The loan is over 60 months (nothing fancy so far), repayments only start after 12 months (payment holiday) AND, (the big one) interest only starts accruing after the 12 month payment holiday. So, it is a loan, yes; but on terms that you won't get anywhere else, together with a 25k grant.

Proof of BBBEE status is nowhere in the requirements, in fact, Rupert himself made a hoo-haa about it when it was originally "leaked" that companies need to be 51% black owned to qualify. Linky

I hope this makes a bit more sense to all.

This post right here is the best I have read in a long time since this kakshow started.

Kudos @Superjakes
 

Acid0

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Only BBBEE companies will be considered apparently.
As @Superjakes said as far as i know Rupert discredited the fact that you have to be BBEE and by all means we all suffer why would the non bee companies not suffer as much as the BBEE companies.
 
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