IDC COVID-19 SMALL INDUSTRIAL FINANCE DISTRESS FUND
The IDC has established a R300-million Covid-19 Small Industrial Finance Distress Fund to assist qualifying IDC clients, as well as new clients, that have been negatively affected by the Covid-19 pandemic. The fund offers concessionary finance to cover their short-term operating costs.
The Covid-19 pandemic is likely to have a negative economic impact on small industrial businesses, including metals and plastics manufacturers, food processing companies, clothing and textile makers, as well as small tourism operations.
Many companies in the industrial sector have seen cash flows significantly eroded due to the lockdown restrictions, hence the need for such a fund to assist businesses in distress at this time.
Any viable small industrial business with strong business fundamentals that finds itself momentarily in distress as result of the Covid-19 pandemic may qualify for funding, provided it meets the following criteria:
It is an existing small business with a trading history of more than 12 months
Annual turnover/revenue does not exceed R50-million
It is a registered business operating within the borders of South Africa
It has a business plan showing a clear turnaround strategy within the next 12 to 24 months
THE FUND IS OPEN TO MANUFACTURERS, ASSEMBLERS AND OTHER VALUE-ADDED SERVICES IN THE FOLLOWING SECTORS:
Agro-processing and agriculture
Chemicals, plastics and medical products
Industrial mineral products
Clothing and textiles
Wood and furniture products
Automotive and transportation
Machinery and equipment
Energy and infrastructure
Basic metal producers
Financing for normal expansions
Refinancing of existing facilities
Payment of non-operational expenditure