To qualify for NYDA funding through the NYDA Grant Programme, you must be a South African citizen and resident aged 18 to 35, with the skills or potential skills to run the business. You must apply at least three months before you turn 35. You then need to complete NYDA’s Business Management Training, submit the documents for your funding threshold, give a 10-minute business pitch and pass a due diligence assessment of the business.
The grant does not have to be repaid, but it is not open-ended. It is aimed at new and early-stage youth businesses, with a turnover cap and a lifetime limit per person. The documents you need grow with the amount you ask for. NYDA also runs a separate Voucher Programme that pays for business services rather than giving you cash.
Eligibility Requirements at a Glance
- Age: 18 to 35, applying at least three months before your 35th birthday
- Citizenship: South African citizen and resident
- Skills: skills or experience suited to the business, or the potential to develop them
- Training: proof that you attended NYDA’s Business Management Training course
- Business size: annual turnover of no more than R750,000, or R1,000,000 for a co-operative
- Lifetime limit: no more than R200,000 in NYDA grants per individual or business. Co-operatives are an exception, and NYDA’s rules set a R250,000 ceiling for agriculture and technology projects
- Who can apply: individuals, co-operatives and community development facilitation projects
NYDA will not fund some applicants and purposes at all, including:
- Businesses in gambling, pyramid schemes, loan sharking, the sex industry or illegal activities, and businesses that rely mainly on tobacco or alcohol
- Applicants who still owe NYDA on a loan, received NYDA SME loan funding, or had an NYDA loan written off
- Applicants who have received more than R500,000 from another development finance institution
- Vehicles, second-hand equipment (except industrial equipment with at least five years of life left), patents, research and development seed capital, exclusive distribution rights, and prototyping other than cellphone app development
- Partial funding, co-funding or a deposit on a loan from another lender, and money to refinance existing loans or pay SARS arrears
- High school learners, un-rehabilitated insolvents, and anyone convicted of fraud
- Current NYDA staff and board or committee members
Income and Affordability Requirements
NYDA does not run an affordability test like a bank does, because you do not repay the grant. Instead, it looks at whether the business is trading and able to grow. From the second threshold upwards, the business must be registered, have traded for a minimum period and create jobs. Your bank statements and management accounts act as the proof.
The grant can be used to buy movable and immovable assets, for bridging finance, for shop renovations and as working capital paid to you. Co-funding is allowed only with legal entities. You must use the money for the purpose approved in your terms and conditions. Any change needs NYDA’s written approval.
Credit and Financial Requirements
NYDA runs a credit check on every grant application. An applicant under debt administration will not be considered. Beyond that, NYDA does not publish a minimum credit score. Your past dealings with NYDA and other development finance institutions count, as listed above.
At the higher thresholds you also need a valid tax clearance and formal financial records. Since the money cannot go towards SARS debt, sort out tax arrears before you apply.
Documents and Verification Required
NYDA’s official Grant Thresholds document (PDF) lists the documents for each funding band. Every band asks for:
- A certified copy of each applicant’s ID, not older than three months, with a CV for every director
- A supplier quotation
- A lease agreement
- A Business Management Studies or Entrepreneurship Certificate
- UIF registration or confirmation (for a company or co-operative), proof of UIF registration by email, and a UIF verified list
Each band then adds its own requirements:
- Threshold 1, R1,000 to R10,000: for operational businesses, registered or not. Add a business plan template and a three-month bank statement
- Threshold 2, R10,001 to R50,000: registered and operating for at least six months. Add proof of registration, a business plan template, six months of business bank statements and the supplier’s banking details. The business must provide one permanent job
- Threshold 3, R50,001 to R100,000: registered and operating for at least 12 months. Add a formal business plan, 3 to 5 years of financial projections, management accounts for the past 6 to 12 months, proof of market or letters of intent, 12 months of bank statements, a valid tax clearance, and an off-take contract where applicable. The business must create at least two additional permanent jobs
- Threshold 4, R100,001 to R250,000: registered and operating for at least 36 months. Add a formal business plan, 3 to 5 years of financial projections, 24 months of business bank statements, management accounts for the past 6 to 24 months, proof of market or letters of intent, and a valid tax clearance certificate. The business must create at least four additional permanent jobs
Because of the R200,000 lifetime limit, amounts above that apply only where NYDA’s rules allow them, such as agriculture and technology projects. Check which threshold fits your business before you gather documents.
How to Apply and Improve Approval Readiness
- Register and apply on the NYDA portal, or visit your nearest NYDA branch.
- Complete the Business Management Training if you have not already done so. NYDA offers the ILO’s Generate Your Business Idea, Start Your Business and Improve Your Business courses. The Start Your Business and Improve Your Business courses end with a compulsory pitching session.
- Submit every document for your threshold.
- Give a 10-minute business pitch, in person or by phone.
- Host an NYDA official for the due diligence assessment of your business.
NYDA aims to process grant applications at the branch within 30 working days. It aims to pay out approved grants from head office within a further 30 working days. The Branch Grant Approval and Review Committee makes the final decision, and you cannot appeal it. If you are declined, you can reapply.
To improve your chances, apply at the lowest threshold your business can properly document. Make sure the quotation matches exactly what you are asking to fund, and keep the business bank account separate from your personal one well before you apply.
Frequently Asked Questions
What are NYDA funding requirements in short?
You must be a South African citizen and resident aged 18 to 35, have completed NYDA business training, run a business with turnover under the cap, and provide the documents for your threshold. You must then pass a pitch, a credit check and a due diligence visit.
Is there an NYDA funding requirements PDF?
Yes. NYDA publishes the Grant Thresholds document, which lists the documents for each funding band. Download it from NYDA’s own site rather than from third parties.
Can I get NYDA funding for a business idea that is not trading yet?
The Grant Thresholds document starts at operational businesses. If you are at the idea stage, NYDA’s Business Management Training includes a Generate Your Business Idea course. Once your business is registered, the Voucher Programme can pay for a business feasibility study or business plan.
What is the NYDA Voucher Programme?
Vouchers worth R6,600 to R19,800 pay approved service providers for services such as business plans, feasibility studies, digital marketing, e-commerce websites, safety files and web-based accounting. You do not pay anything towards it. Voucher applicants must be 18 to 35 and South African citizens or permanent residents, and the business must be 100% youth-owned and operate in South Africa. Each registered entity can receive up to two vouchers for each business development phase.
Can I get NYDA funding for a car or taxi?
No. NYDA does not provide grant funding for vehicles.
Can I appeal if my grant is declined?
No. The committee’s decision is final, but you may reapply.
NYDA revises its grant rules, thresholds and documents from time to time, so confirm the current position on nyda.gov.za or through the NYDA call centre on 0800 58 58 58 before you apply. See loan requirements and browse all finance and funding requirements.