It is true! The Department of Trade and Industry has a grant of up to R1 00 000 for Black, Indian and Coloured owned businesses to purchase Tools, Plant and Machinery. The aim of the fund is to grow existing businesses and to employ more people.The bad news is it's not for start up businesses.

Should you be in business and need to purchase tools, plant or machinery the DTI will pay 50% of the price of the goods. You will however need to pay the full VAT amount with your 50%.

You will need to have cash or arrange finance for your 50% contribution before making the application.

My job is to guide you through the paperwork, asses your application and see the process to the end. The dti pay me for this service.

 IT'S NOT FOR START-UPS. Please have a look at the checklist below to see if your business would qualify for the BBSDP.  

 Alan can be contacted on 072 225 6835 or emailed: alan@bbsdp.co.za

The BBSDP or Black Business Suppliers Development Program.

What is the BBSDP?

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. You will be required to provide the DTI with proof that you can get bank financing.

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 grant is predominantly for the acquisition of tools, plant and machinery, however there is a huge emphasis on the support services as this helps build the skills and capacity in the business. 

You need the following to qualify.

If you don't meet these then we can't help you.

• Registered company/ cc
• 50.1% black owned (Black, Indian or Coloured) or more
  Management team 50% black
• Trading for at least one year and have financial statements to prove turnover.
  Turnover between R250k and R35m
• Valid SARS tax clearance and VAT registration

         NOTE: THE GRANT IS MAINLY TO ASSIST YOU TO PURCHASE MACHINERY.

         YOU WILL BE REQUIRED TO FUND / FINANCE YOUR 50% PORTION.

         THE GRANT IS PART OF A FINANCE APPLICATION.

         IF YOU KNOW YOU CAN'T GET FINANCE THEN THE BBSDP IS NOT FOR YOU.

CHECKLIST

1. Company registration documents (proof of ownership and shareholding)
2. Certified ID of all Directors/ members 
3. Certified ID of all managers/ staff to be trained (if applicable)
4. Certified financial statements for latest financial year (three years if available)
5. Management accounts for current year
6. Valid SARS tax clearance
7. VAT registration document (where applicable)
8. 3 Months bank statements
9. 3 Quotations/ proposals supported by a signed SBD9 form, for each item  
10. A signed letter of appointment appointing Alan Torley as Network facilitator.
11. Company diagnostic questionaire typed on template supplied byGraphit
12. Completed application form
13. Will you be able to get finance for your 50%  or 20% contibution. (Clear credit record)

What type of support services are on offer?

NOTE: The dti will pay 80% and you will only pay 20% for the following services. Max R200K

Signs:Chromadek, Illuminated facia, Directional, Facia and neon.

ISO Quality management manuals and certification, Health and Safety manuals, and BEE accreditation

Training: Pastel, bookkeeping, project management, Financial Management, General management training etc.

Software: Pastel Xpress, Pastel Payroll, Pastel HR, Adobe Creative Suite,Adobe CS4, Billcost, CRM Maximiser,Electrification designer, MS Office etc

The above items are just a guide to get you thinking about your requirements

And here we go with the official info from the DTI. 

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.

This is a cost sharing grant for Black owned business, whereby the DTI provides a grant of up to R1 000 000 to assist the qualifying business to purchase machinery and equipment (no pay back of the DTI's portion). The grant is to be used as a 50% deposit  and the balance financed by commercial banks, the IDC or the Empowerment fund or similar financial institutions. R800 000 can be used as a deposit and the remaining R200 000 will be a 80/20% cost sharing grant for training, software and ISO9001 etc.

Black Business Supplier Development Programme (BBSDP)

The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to black-owned small enterprises, to assist them in improving their competitiveness and sustainability, in order for them to become integrated into the mainstream economy and create employment. The BBSDP offers a grant to a maximum of R1 million (R800 000 is ring-fenced for tools, machinery and equipment) per eligible enterprise, to improve principles of corporate governance, management, marketing, productivity and use of modern technology.

Objectives of the incentive scheme

• To fast-track existing SMMEs that exhibit good potential for growth into the mainstream economy;
• To grow black-owned enterprises by fostering linkages between black-owned SMMEs, and the corporate and public sector enterprises;
• To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises; and
• To enhance the capacity of grant-recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.

Qualifying criteria

• Fifty-one percent (51%) black majority shareholding;
• R250 000 to R35 million turnover per year;
• One (1) year in operation and trading as a business;
• Fifty percent (50%) management positions held by black people (historically disadvantaged individuals);
• Enterprises formally registered for VAT;
• Eligible to obtain funding to a maximum of R1 million for the activities offered under the BBSDP (NB: R800 000 is ring-fenced for tools, equipment and machinery); and
• Cost-sharing ratio of 80:20 for business development services and 50:50 for tools, equipment and machinery.