SEFA Loan Requirements: A Complete Guide for South African Businesses

The Small Enterprise Finance Agency (SEFA) loan requirements vary depending on the type of lending support you are applying for, with specific criteria for direct lending and wholesale lending programs.

Direct Lending Support

For direct lending support, SEFA has established a comprehensive set of eligibility criteria that businesses must meet. A crucial requirement is that you must be a South African citizen with valid documentation and operate a registered business with the Companies and Intellectual Property Commission (CIPC). Your business must also be located in South Africa and managed by a South African, employing at least 95% South African staff.

Additional requirements for direct lending include having at least one member or shareholder actively involved in the business operations. Your business needs to demonstrate the ability to generate the level of development outlined in the SEFA corporate plan. Moreover, the business must be both sustainable and commercially viable. Specifically for direct lending loan facilities, the business must be 51% black-owned.

Wholesale Lending Products

The requirements for SEFA’s wholesale lending products are more stringent. Applicants must have been in operation for a minimum of two years and be registered with the CIPC. Compliance with all business regulations and laws is mandatory, requiring applicants or key personnel to have at least five years of experience in investment or microfinance roles.

Furthermore, compliance with B-BBEE codes of good practice is necessary, and businesses must be willing to accept SEFA interventions and business institutional support services.

Funding Amounts and Industry Focus

SEFA offers funding amounts ranging from R500,000 to R15 million through its Direct Lending and Wholesale Lending programs. While the agency prioritizes businesses in the services, manufacturing, and agricultural sectors, funding options are available to businesses across all industries.

Application Process and Required Documentation

To apply for SEFA funding, several documents are needed, including:

• Certified ID copies
• Certified business registration and compliance documentation
• Supporting quotations for the assistance required
• A personal income and expenditure schedule
• An assets and liability statement

The application process requires filling out the SEFA loan application form, which gathers comprehensive details about the company, financial records, and references.

Contact and Further Information

For more information or to follow up on your application, you can contact SEFA directly at (+27)12 748 9600, email helpline@sefa.org.za, or visit the Small Enterprise Finance Agency website.

If you’re considering a SEFA loan, ensure your business meets all the criteria, gather the necessary documentation, and you’ll be well on your way to obtaining financial support to grow your enterprise.