A “dti loan” for a small business is not one product. The Department of Trade, Industry and Competition (the dtic, formerly the dti) runs incentive schemes that its own incentive schemes guide describes as cost-sharing grants. Loans come from agencies and development funders: sefa (now part of the Small Enterprise Development and Finance Agency, SEDFA), the National Empowerment Fund (NEF) and the Industrial Development Corporation (IDC). Each has its own criteria and application route.
The sections below set out what each funder publishes. Confirm current criteria with the funder before you build an application, because amounts and windows change.
Eligibility Requirements at a Glance
sefa (Small Enterprise Finance Agency). sefa lends directly to small enterprises and co-operatives in all sectors. Its online application page lists these criteria:
- The business must be owner managed, with the owner involved in day-to-day running full time
- The business must be situated in South Africa, and the major shareholder must be a South African citizen
- The business must have a profit motive, be economically viable, and show in its cash flow forecast that it can repay
- The owner must make a contribution of their own, and the business must be compliant and create jobs
sefa excludes, among others, persons under debt review, un-rehabilitated insolvent shareholders or directors, non-profit organisations, property development, tobacco, liquor, gambling and primary agriculture. The SEDFA financial-support page no longer shows this general sefa direct-lending product or its criteria, so confirm the current product with SEDFA before you rely on them.
NEF. The NEF funding criteria require a minimum of 50.1% black ownership or interest, commercial viability, the ability to repay, reasonable job creation and legal compliance. The NEF describes itself as an agency of the dtic and offers business loans from R250 000 to R75 million.
IDC. The IDC funds start-up and existing businesses and states a minimum funding requirement of R1 million and a maximum of R1 billion on its funding solutions page. Its minimum requirements, per its FAQ, include a registered business, job creation, a completed business plan, economic merit, a reasonable financial contribution from the owners, security and statutory compliance.
Income and Affordability Requirements
Development funders assess viability rather than a salary. sefa asks for a cash flow forecast that shows the business can repay, and expects an owner contribution. Its online application page shows a loan range of R50K to R5m. SEDFA’s financial-support page shows credit facilities of R50 000 to R15 million only for its Amavulandlela scheme for entrepreneurs with disabilities, and states no general ceiling, so confirm the current limit with SEDFA. SEDFA’s term loan page gives a repayment period of between 12 and 60 months.
The NEF and IDC likewise look for the ability to repay and a reasonable contribution from the owners, and the IDC also looks for security, which may include bonds, personal surety and corporate guarantees.
Credit and Financial Requirements
SEDFA’s website shows an NCR number (20821), and you can check a credit provider’s registration on the National Credit Regulator register. The National Credit Act applies to some business loans and not others: it does not apply where the borrower is a company or other juristic person whose combined asset value or annual turnover, with related juristic persons, equals or exceeds the threshold the Minister sets, but it does apply to a large agreement where the borrower is below that threshold. The 2006 notice set the threshold at R1 000 000 of combined annual turnover or asset value; confirm the current figure before relying on it. Where the Act applies, the lender must assess affordability and must not lend recklessly.
Both sefa and the IDC require statutory compliance, and sefa excludes applicants under debt review. Clear any outstanding judgments or debt review before applying.
Documents and Verification Required
Each funder publishes its own requirements. The NEF accepts online applications only, and the submission comprises the application form, a business plan with 5-year financial projections, certified copies of IDs and company registration documents (NEF brochure, May 2026). The IDC asks for a written funding request letter, an executive summary and a business plan. sefa’s eligibility page does not list a document checklist, so confirm it when you apply.
How to Apply and Improve Approval Readiness
- Match your business to the funder: sefa for small enterprises, the NEF if you meet the 50.1% black ownership requirement, the IDC only if you need at least R1 million
- For sefa, start with the online enquiry and application
- For the NEF, submit online: the NEF aims to assess applications in about three months
- For the IDC, send the funding request letter, executive summary and business plan; it aims to finish approval within three to five months
- If you are 18 to 35, look at the NYDA grant instead (see the FAQ)
Nobody can guarantee approval of funding, so be wary of anyone who promises it.
Frequently Asked Questions
Does the dtic lend money directly to small businesses?
The dtic’s own incentive schemes are described as cost-sharing grants, for example THRIP at up to R5 million a year. Loans for small businesses come from agencies such as sefa, the NEF and the IDC. A business that receives dtic funding cannot benefit from other government funding for the same scope of work.
Is government funding a grant or a loan?
Both exist. dtic incentives are grants, while sefa, the NEF and the IDC lend. The NYDA grant is not a loan either.
How much can sefa lend?
sefa’s online application page states R50K to R5m. SEDFA’s financial-support page shows R50 000 to R15 million only for the Amavulandlela scheme for entrepreneurs with disabilities and states no general ceiling. Confirm the current limit with SEDFA.
Can a start-up apply?
The IDC states that it funds start-up and existing businesses, subject to its R1 million minimum. Other funders assess viability through your business plan and cash flow forecast, so ask each one about start-ups directly.
Is there a grant for young entrepreneurs?
Yes. The NYDA Grant Programme is for South African citizens and residents aged 18 to 35. The cumulative grant cap is R200 000 per individual or business (R250 000 for certain co-operatives), and businesses with annual turnover above R750 000 are excluded.
Confirm current criteria with the funder before you apply. See the loan requirements guide and browse all finance and funding requirements.