Financial assistance

In light of the lockdown there has been a significant number of businesses under pressure in terms of cash
flow and the ability to pay their employees. The government has announced measures that are in place and
still in the process of being implemented to provide some relief for Small and Medium-sized Entities.
We have compiled a list of all the measures presently known to us of what the government is providing to small
business to help them through this difficult time. We can only bring to your attention what has been announced.

The LSSA has published a concise, easy-to-understand guide on the UIF TERS benefit. The guide explains the Covid-19 TERS directive, and outlines who can apply for the benefit, as well as the application process.

Specialist financier, Taurus Capital, has created an alternative funding solution for South African law firms. It has built a R300 million capital pool which is exclusively available to the legal fraternity.

Taurus Capital’s solutions are tailored to each firm’s needs, with facilities from R250,000 to R30 million available to firms ranging in size from boutique to large multi-partner firms.

Unlike traditional lenders, Taurus Capital assigns value to intangible assets such as book debts, mandate and fee agreements, invoices, court orders and taxed bills of costs. They recognise that law firm income is cyclical and therefore match repayment expectations with the cashflow cycles of the firms they partner with.

The funding is the form of a pre-approved loan and is a non-binding funding solution that legal practices can use – and pay for – only if required.

Capital is available within 24 hours upon receipt of a signed loan agreement. The application process begins with a consultation process with a Taurus Capital executive to understand the nature of the firm and its specific financial requirements. Key financial documents are submitted as well as applicable court orders, fee agreements, invoices, and book debts. These are used by Taurus Capital’s team to conduct a financial analysis and develop bespoke solutions for each client.

Click here for more information.

This initiative is from the Department of Small Business Development, the fund will provide assistance to
mitigate the impact of the expected economic slowdown on small and medium enterprises (SME) in the
country.
The fund value amounts to R500 million
To apply, the business applying must comply with the following criteria:
Registered with CIPC at 28 February 2020
100% owned by SA Citizens
Should employ at least 70% South African Nationals
The business applying should be fully tax compliant
Priority will be given to businesses owned by women, youth and people employed with disabilities.
Applicants must demonstrate direct link of impact or potential link of impact of Covid-19.

This fund was established by a R1 billion donation from the Oppenheimer family that is to provide assistance
to companies that are affected by the Covid-19 epidemic and lockdown. The fund will be administered through
a trust to provide interest free loans to businesses for a period of 5 years.
To apply, the business applying must comply with the following criteria:
Have an annual turnover of less than R25 million.
Have been trading for two or more years.
Must be in good standing with the banks.
Must be a sustainable business on 29 February 2020.
The company must be banking with one of the following banks: ABSA, FNB, Nedbank or Standard Bank.
The business must be able to provide proof of how the lockdown and pandemic has affected the
business.
Firms are requested to obtain the necessary information and if the terms are affordable to apply to the above
banks if they are clients.

The Rupert fund is established through a R1 billion donation from Anton Rupert to aid small businesses
affected by the Covid-19 epidemic and the lockdown. The fund will be administered through Business Partners
Limited.
The funding can be utilised to fund working capital. (Salaries, rent, loan instalments, etc). Please note that this
is short-term financing, with the following terms:
Month 1 – 12: 0% interest, with a payment holiday of 12 months
Month 12 – 60 : Prime interest to be levied on the loan.
The funding will be provided via monthly disbursements.
Qualifying criteria:
The business must be tax compliant.
February 2019 signed annual financial statements must be submitted.
Ownership does not have to be SA citizens.
More clarity on the above fund is yet to be made public on how to apply.

The Covid-19 TERS is a separate fund from the Unemployment Insurance Fund and is applicable to caring
and responsible employers that are unable to pay salaries of workers they send home due to the lockdown
and are encouraged to apply for Covid-19 TERS. Only businesses that are closed due to the lockdown, may
apply. If shorter hours are worked, UIF must be claimed.
To apply simply send an email to covid19ters@labour.gov.za and an automated response will reply with the
requirements and documentation to be completed by the employers.

When the lockdown was announced by the President, he informed the country that there will be relief received
from SARS. The following relief is available:
For companies with a turnover less than R50 million, they have the option to delay 20% of the
company’s PAYE liability for a period up to four months starting 1 April 2020 (please note this is not
applicable for the March 2020 PAYE that has to be paid by today, 7 April 2020). The PAYE liability that is
delayed must be paid to SARS in equal instalments over six months starting 01 August 2020.
For provisional taxes there is also a delay that will be communicated when the time comes for
provisional tax returns. Click here for the explanatory notes on Covid-19 tax measures.

https://sasmefund.co.za/ – Independent Fund

Government relief fund for small business
Help line number : 0860 663 7867
https://smmesa.gov.za/
SMME Business Growth Resilience Facility Form
SMME Debt Relief Scheme Form
COVID Finance Relief Application Form

LSSA letters and advisories

Court directives and regulations

∗It is expected that the Justice Minister will publish directives on 25 March after consultation with the Chief Justice. These resolutions will then apply in conjunction with those directives.

General Covid-19 resources