Name of the fund
IDC Distressed Funding
Fund administered by
Type of relief/support
- Debt and guarantees only (equity on a case by case basis)
- Scheme-related concessionary pricing
Total size of the fund
Who does the fund target?
Businesses that either directly or indirectly, are reasonably unlikely to be able to pay debts as they are due and are unlikely to be able to fund their operating activities
- Automotive and Transport
- Agriculture and Agro-Processing
- Basic Mining and Minerals
- Chemical Products and Pharmaceuticals
- Basic and Speciality Chemicals
- Clothing and Textiles
- Heavy Manufacturing
- Light Manufacturing
- Media and Audio-visuals
- New industries
- Industrial Infrastructure
Minimum amount you can apply for
Maximum amount you can apply for
FUNDING CRITERIA FOR THE IDC DISTRESSED FUNDING:
- The company must be in distress due to COVID-19.
- The company must operate in the mandated sectors.
- The company must demonstrate strong business financials and be considered viable.
- Must have a sustainable business plan.
- Intervention plans must show the business case for recovery in 18 – 24 months.
- There must be evidence that concessionary finance will enable the business to trade out of any short to medium-term financial crisis.
- Limited to South African companies and clients.
- Risk must be shared with other funders, not just the IDC.
- The company’s financial needs must be in excess of assistance from the Unemployment Insurance Fund, the Compensation Fund, the IDC’s funding and any other support schemes i.e. the IDC’s funding should only be used to fund any shortfall.
EXCLUSIONS FOR THE IDC DISTRESSED FUNDING:
- Normal expansions.
- Refinancing of existing facilities.
- Share buy-backs.
- Payment of non-operational expenditure e.g. bonuses or dividends.
- The financial distress of the company must not be linked to mismanagement.
HOW TO APPLY FOR THE IDC DISTRESSED FUNDING:
DOCUMENTATION TO BE PROVIDED FOR THE IDC DISTRESSED FUNDING:
- Letter of good standing from your bank.
- Copies and confirmation of all other existing financing facilities.
- CIPC registration documents.
- FICA documents (e.g. municipal accounts, letter from traditional authority).
- PEP (Politically Exposed Person) status.
- Certified ID copies of directors.
- CVs of management.
- 3 months’ bank statements.
- Latest annual financial statements or latest management accounts not older than three months from date of application - where applicable.
- Business profile.
- Description of project and products to be manufactured.
- Copy of contracts or purchase order from Government or significant customer.
- 6 months’ cash flow projections.
- Quotations to support applications of funds.
- Payment terms of suppliers.
- Statements of assets and liabilities for shareholders/directors and guarantors.
ADDITIONAL INFORMATION FOR THE IDC DISTRESSED FUNDING:
firstname.lastname@example.org | 0860 693 888