Black Business Supplier Development Programme

The DTI’s BBSDP program provides black owned small business with a non-repayable grant of up to R1million to assist them in improving their competitiveness and sustainability. It provides a grant (Gift) to a maximum of R800 000 for tools, machinery and equipment. This is to be used as a (50%) deposit, which can be used to secure the additional finance.

R200 000 is to be used for business development and training interventions to improve the business’s corporate governance, management, marketing, productivity and use of modern technology. This portion of the grant is on a 80 / 20% cost sharing.

The enterprise qualifies for 30% of its annual turnover.

(Max grant R1mil)

The BBSDP outcomes are to improve the sustainability of black-owned enterprises and thereby increase employment.

BBSDP grants are available to any South African business which complies with a stipulated set of requirements, the most significant being that the business must be owned (at least 50.1%) and managed by previously disadvantaged South Africans, that it must have been in business for a minimum of one year, and that it must generate an annual turnover greater than R250 000 per annum.

Requirements of the BBSDP

Who qualifies?

Proof of ownership of the enterprise

The business must be operational for 1 Year

Must have signed financial statements

3 months bank statements of the enterprise

Must be 50.1% Black owned (Black, Indian Coloured)

Management must be predominantly Black

Must be registered for VAT

Must have a valid Tax clearance from SARS

Must have an up to date Business plan

Annual turnover must be greater than R250 000 but less than R35 million

Must be registered at CIPRO as a CC or Pty(Ltd) or Co-operative or Trust.

NO. NGO's and section 21 businesses may not apply for the grant?

To submit an application we require the following:-

Attach proof of all the above requirements

Written appointment of Graphit as your Network Facilitator

List of managers, directors, shareholders and employees together with certified copies of identity document (ID)

Certificate of satisfaction signed by from the enterprise and service provider

Attach quotations / proposals for the required interventions (3 Quotes required)

Service provider evaluation report

Proof that the service provider can supply

A signed BBSDP application form

A profile and Tax clearance of your chosen supplier.

Network facilitator

Company diagnostic report

            Service provider evaluation report

            Proof that the enterprise has the potential to pay

For tools, equipment and machinery

Due diligence conducted by a financial institute

Approved letter stating the requirements for final approval

What does the Grant cover?

The grant provides a 50% deposit (Maximum of R800 000) to assist with the purchase of plant and machinery. (The grant = no pay back of this portion).

The balance of the grant (Max of R200 000) can be used on the following:

(Remember this is on a 80/20% cost sharing)

Business management training

Planning

organising

finance

industrial relations

business writing

finance

business information technology(IT)

Corporate governance

                        Roles and responsibility of directors

                        Line functions

                        Conducting meetings

Business ethics

Compliance

Sales management (including customer service, customer support)

Negotiating skills and techniques

Tendering and contracting

Mentorship and coaching

HIV and AIDS risk mitigation (policies, programs, awareness, prevention, treatment)

Interventions that also qualify are those aimed at improving the effectiveness of the management systems of an enterprise; assisting enterprises with entry into targeted or new markets; increasing competitiveness of enterprises or any similar business development intervention, including:-

Company diagnostics

Business strategy

Marketing strategy (including information, planning, improvements, branding)

Organisation and management improvements

Management information systems (including production, sales accounting, software)

Quality assurance – ISO

Patenting and productivity improvements

Product improvement

BEE rating and certification

Expansion modernization strategy and planning

The grant excludes:-

Office equipment

Motor vehicles and trucks

Land and buildings

Working capital

Long term training e.g. MBA

Interventions that are funded by other government schemes

Design and printing of company stationary and business cards

Contact Alan Torley for an appointment.

As a facilitator he has to view your place of business and conduct an assessment of the business.

Cell 072 225 6835

alan@bbsdp.co.za

or

atorley@telkomsa.net

ENTRY LEVEL CRITERIA

Do you qualify

ü Registered company/ cc

ü 50.1% black owned

ü Management team 50% black

ü Trading for at least one year

ü Turnover between R250k and R35m

ü Valid SARS tax clearance and VAT registration

CHECKLIST

ü Company registration documents (proof of ownership and shareholding)

ü  

ü Certified ID of all Directors/ members

ü  

ü Certified ID of all managers/ staff to be trained (if applicable)

ü  

ü Certified financial statements for latest financial year (three years if available)

ü  

ü Management accounts for current year

ü  

ü Valid SARS tax clearance

ü  

ü VAT registration document (where applicable)

ü  

ü 3 Months bank statements

ü  

ü 3 Quotations/ proposals for each item

ü  

ü Terms of reference used obtain quotations

ü  

ü A signed letter of consent, accompanied by the applicant’s ID, appointing Alan Torley

ü  

ü Sound company report (completed by NF)

ü  

ü Company diagnostic report (completed by NF)

ü  

ü Completed application form

Unfortunatelythe BBSDP is to assist established businesses to acquire plant and machinery. It is the aim of the fund to grow existing businesses.

SEDA and GEP would be better options or as most small businesses do find the money required  by talking to friends and family. 

No! The fund is to help existing businesses to grow and expand. 

The grant does not give you or your business any money. All money or guarantees will be paid to banks or approved service providers as requested by you in your application.