Small businesses (under R50m turnover) who are negatively affected are entitled to get assistance from the DSBD website. It is early days, so I am unsure exactly how it works and who qualifies and or under what circumstances precisely. However, what is very clear is the list of information that is needed. Pay special attention to the Qualifying Criteria, as without this, you will not be able to move forward.
You may opt to tackle this yourself, but if you seek our assistance, we will charge for our time. Kindly enquire if you would like us to do the application and we will supply an estimated fee.
- Our fee is estimated and assumes we will not be too busy. You will be informed along the way.
- This estimated fee assumes all the required information is provided to us.
- For example, if we have to prepare the Annual Financial Statements and or Management Accounts – this will be a separate additional fee.
Please note that we are a private company who charge for our time.
Now Read PATC’s Coronavirus Management Plan
Items worth noting inter alia:
The Press, including social media, has publicised that the business needs to be 51% black owned. This condition has been removed. So it is NOT applicable
- “Be registered and compliant with SARS and UIF”
- So, if there is anything outstanding, they will need to get this up to date FIRST, which we can help with – separate fee
- “Proof that the business is negatively affected by COVID-19 pandemic”
- The client needs to provide this, or we (PATC) will have to prepare CURRENT figures (which we might only be able to do AFTER the event) showing previous turnover/profits vs current turnover/profits. This is one method to provide proof (separate fee)
- “Latest Annual Financial Statements or latest Management Accounts not older than three months from date of application – where applicable”
- If for example, your AFS is February and the last AFS that was done was 28.2.2019, then we have no choice but to prepare Management Accounts as these would then be ‘not older than three months’. So unless your AFS was End January 2020 or later, we WILL have to do AFS Feb 2020 (which we have to do on a first come first served basis and then a queuing system will apply) or Management Accounts (We recommended Management Accounts as this will take less time).
- “Business Profile”
- I suggest a one or two-page document covering an overview of the business:
- What you do / what services / products you provide
- Sole Proprietor, Close Cor[oration, Company, Partnership?
- Brief History
- Location and where do you offer Services / products to?
- How many staff do you have?
- “Six months Cashflow projection – where applicable”
- This is necessary as it is a loan and they will want to see that you forecasted poorer times, but strong enough to be able to afford the loan repayment. Recommended
- “Copy of Lease Agreement or Proof ownership if applying for rental relief”
- I interpret that you will not get relief from your Landlord / Bank necessarily. I would imagine that you still obliged to pay rent and or your bond, but you can get some or other relief from DSBD
- “If applying for payroll relief, details of employees – as registered with UIF and including banking details – will be required as payroll payments will be made directly to employees”
- My interpretation is that if you are applying to assist staff to get their money (UIF), then we would need to do this. I am unsure whether staff can apply via UIF and here (as in ,they will get additional relief here as well as UIF – highly unlikely – but your loan can be used to assist staff), so if you want to help your staff (and not leave them to sort themselves out) then you must follow this list of requirement too.
- SMME employers who are not compliant with UIF must register before applying for relief
- Self-explanatory – we might need to assist to do this first.
Contact PATC to find out more.
Thank you and Kind regards,