CDI Capital Growth has announced that applications for funding grants to help small businesses are now being accepted, with the goal of creating 600 new jobs by 2023.
CDI Capital is a niche emerging impact funder, and subsidiary of the Craft + Design Institute (CDI) non-profit, which has a 20-year track record of success in supporting small businesses in South Africa. As an impact funder, CDI Capital is committed to creating positive social and economic impact in the SMME sector and the South African economy.
From 2012 -2015, CDI Capital Growth Fund created 464 jobs in 45 businesses with participating businesses growing their combined annual revenue by 73% – exceeding the fund’s initial targets. The current round of funding, supported by the National Treasury’s Jobs Fund, aims to support up to 60 businesses to create 600 new jobs by 31 March 2023.
Businesses that are experiencing growth or planning to expand will be eligible for assistance, which will allow them to create jobs.
Small businesses that are successful in their application will receive funds ranging from R105 000 to R1 050 000 from the emerging impact funder, which is part of the Craft + Design Institute non-profit organization. According to CDI Capital, the amount of funding will be determined by how many jobs the businesses commit to creating before March 31, 2023.
Within the next three months, the fund plans to provide subsidies to 20 enterprises around the country.
“We believe that small businesses are vital to growing our economy and creating jobs – even more so post the pandemic and recent social unrest,” Erica Elk of the CDI said in a statement.
“With meaningful, socially responsible investment we can maximize the potential of local entrepreneurs, building a generation of South African innovators, and a strong, inclusive economy.”
To be eligible to apply a business must:
- Be a South African-owned business, with the controlling interest of the enterprise (51% of the issued ordinary share capital) being held by South African citizens with a valid South African ID OR a South African Registered legal entity itself controlled by South African citizens with a valid South African ID.
- Operate within South Africa, including but not limited to projects, programmes, or enterprises of the business.
- Be an existing business, at least 1 year old (preference will be given to businesses that have been trading for 2 years or more) with turnover or assets above R600 000 (if this was pre-COVID-19 a business will still be eligible).
- Match 20% of the contribution of the Fund through their own cash contribution.
- Must create one job for every R21, 000 grant investment, with a minimum of 5 jobs.
- Be tax compliant and supply a valid Tax Compliance Status (TCS).