The R300m SMME Crisis Partnership Fund for small businesses in the province will help homeowners to build residential units to let on their properties and help ‘float’ other entrepreneurs to allow them to take on bigger projects.
The Gauteng provincial government, the Industrial Development Corporation and the SA SME Fund have set up what they characterise as a “game changing” R300-million SMME Crisis Partnership Fund for small businesses in the province.
The SMME Crisis Partnership Fund is aimed at correcting this. Each of the three partners has contributed R100-million towards the fund, with the provincial government providing a first loss guarantee, which means it will compensate lenders should the borrower default. The three intermediaries are Indlu Living, which helps homeowners fund the development of backyard rooms and helps place tenants via an app; Profit Share Partners, a fintech company that offers finance to small businesses; and Crede Capital Partners, a financial services firm offering transaction advisory services, risk and investment management services. They will begin offering working capital and asset finance to hundreds of small businesses and entrepreneurs.
“At the end of the loan period, which is five years, the homeowner would be an entrepreneur who rents out many rooms… They would be earning both an income and creating intergenerational wealth because after five years, their home would be worth considerably more than before. They are micro entrepreneurs, who are using their RDP house as an asset that they can leverage in the way that middle-class people use their properties as assets,” Manning said.
“With those kinds of loads, you can recycle, you know, R30-million in loans many, many times in the course of a two-year period, which is the size of this fund. The partners will be supporting many hundreds of businesses, because they will be using the same capital. We are also providing funding to a few others who we haven’t yet signed.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to mitigate rising operating costs in your small business | The CitizenSmall businesses are struggling, especially with load shedding and water shedding, but they can survive if they manage to save on operating costs. 💵Find out how here 👇
Read more »
NATASHA MARRIAN: Power plays for metros on the road to 2024As opposition parties quibble over broken coalition deals, illegal council sittings and lofty positions, the ANC is quietly working in the background, with a bigger goal in mind: to retain Gauteng in 2024, writes NatashaMarrian.
Read more »
Stage 2 water restrictions in GautengGauteng residents are urged to reduce their water consumption.
Read more »
It's free to you! Ministers pay nothing for water and power | CitypressMembers of President Ramaphosa’s bloated Cabinet, who each make multimillions per year, don’t pay for utilities after the president surreptitiously changed the rules on caps. | City_Press
Read more »