Question NW3817 to the Minister of Small Business Development
27 December 2023 - NW3817
Luthuli, Mr BN to ask the Minister of Small Business Development
What (a) total amount was spent on the sustenance and development of (i) small-, medium- and micro enterprises and (ii) informal businesses in the (aa) townships and (bb) rural areas during the COVID-19 lockdown in each province, (b) post-COVID-19 support was offered to the specified businesses, (c) total number of the businesses supported in this way during the COVID-19 lockdown are still operational and (d) are the further relevant details in each case?”
Reply:
I have been advised that:
a) The Department of Small Business Development (DSBD) through the Small Enterprise Finance Agency (sefa) provided support to small businesses during the Covid-19 pandemic. sefa contributed towards the Covid-19 emergency fund (relief programme) which was aimed at providing relief to small businesses during the pandemic. Through the fund, sefa disbursed R316 million to 1 144 small businesses. Of this amount, R28 million was disbursed to businesses in townships and R60 million were to businesses in rural areas.
(a)(i)&(ii)
b) An additional R10 million was disbursed towards business growth and resilience facilities.
R105 million has been approved for SMME payment holidays. The Department further introduced the Economic Recovery Programme to assist small businesses in the South African economy. The economic recovery programme disbursed R1.3 billion to small businesses operating in various provinces as per the table below. The disbursements to small businesses operating in townships amounted to R552 million and R392 million to those in rural areas.
c) Through the Covid-19 relief scheme, a total of 1 161 clients were funded. As at end of September 2023, 450 clients had their loans settled, 407 are still honouring their payment obligations and 304 clients are not paying.
d) The businesses that have settled their loans are no longer under sefa monitoring. 450 clients are still honouring their payments although their term has expired. These businesses are still operational and sefa is considering restructuring these loans. The 304 clients which are not paying sefa and are handed over to pursue collection. An exercise is underway to re-verify their existence.