The South African government has announced a number of relief funds, loan packages and other measures to businesses affected by the COVID-9 pandemic.
The special support has been implemented for small, medium and micro enterprises (SMMEs) as the COVID-19 Business Rescue Assistance (COBRA) and the South African Future Trust (SAFT).
SAFT is administered by Oppenheimer Generations Trust and is an interest-free, five-year loan exclusively for the purpose of paying permanent employees. Currently, this scheme is limited to clients of ABSA, FirstRand Bank, Nedbank, and Standard Bank.
COBRA offers free daily and weekly webinars to share information to guide business leaders. The COBRA War Room will provide support to businesses to avoid business rescue at pro bono or discounted fees.
The South African Revenue Service has implemented COVID-19 Tax Relief for tax-complaint SMMEs. This can be a tax subsidy to employers of up to R500 per month for the next four months for employees earning below R6 500.
Alternatively, SMMEs will be allowed to delay 20% of their employees’ tax liability over the next four months and a portion of their provisional corporate income tax payments, without penalties or interest.
Click here to see the details of all the relief funds, loan packages and other financial measures the government has announced.