How NYDA Could Assist You With A Business Grant
The route to a fruitful business venture is funding. The best alternative to the youth should be the National Youth Development Agency (NYDA) Grant Programme.
The programme is designed to enable young entrepreneurs to establish or grow their businesses with an opportunity to access both financial and non-financial business development support.
The programme focuses on youth entrepreneurs who are at intentional, promising and new stages of enterprise development. Individuals whose business ideas qualify for the Grant Programme, depending on their individual needs, will also undergo some of the NYDA’s non-financial support services, including:
- Business Consultancy Services
- Market Linkages
- Business Management Training Programme
- Youth Co-operative Development Programme
Individuals or Enterprises that require funding that’s more than R200 000 (for agriculture and technology-related projects the maximum funding value is R250 000.00).
- Partial funding, co-funding, or funding towards a deposit for a loan from another lending establishment;
- Where an application is made by current NYDA staff members, Board Committee Members or Member of the Accounting Authority;
- Pyramid Sales Schemes.
- Fall within the gambling, gaming with a chance at making money, pyramid sales scheme, loan shark or sex industries (prostitution), and/or operates illegal activities.
- Businesses or shareholders of businesses that are still owing the NYDA through loan funding.
- Businesses or shareholders of businesses that received NYDA SME loan funding.
- Businesses or shareholders of businesses that had their loans written off by NYDA.
- Businesses that have an annual turnover exceeding R750 000.00 except for cooperatives whose annual turnover must not exceed R100 000.00
- Second-hand equipment, except for industrial equipment with a minimum balance lifespan of five years;
- Tobacco as a primary income generator;
- Alcohol as a primary income generator;
- Are investment trusts or venture capital / private equity funds?
- Require finance to substitute an existing financier;
- An individual or business shall not receive a cumulative grant amount above R200 000 from NYDA during their lifetime except for cooperatives (for agriculture and technology-related projects the maximum cumulative value is R250 000.00).
- A member of a business or cooperative enterprise who resigns from the business or cooperative can only apply for grant funding after two years from the date of resignation from the business that has been funded by the NYDA in the past from the grant programme.
- Require funding for prototyping except for cell phone application development.
- Require seed capital for research and development;
- Require funding for patent registration.
- Require funding to purchase exclusive business/distribution rights
- Shareholders/members are natural persons who lack contractual capacity by virtue of:
- -- being of unsound mind;
- -- Have a record of fraud and/or corruption except for youth in conflict with the law who have been rehabilitated;
- -- Where the owner/applicant is an un-rehabilitated insolvent;
- -- Where the owner/applicant is attending a high school other than tertiary institutions;
- NYDA shall not provide grant funding for vehicles
The grant recipient shall not use NYDA funds to do the following:
- To pay a bribe;
- Re-finance any existing loans;
- Any material purpose not contained in the application for a grant or defined during due diligence stage and detailed in the approved Terms & Conditions, unless where written approval has been granted by NYDA;
- To settle overdue or outstanding South African Revenue Service liabilities, whether current on non-current.
- NYDA will not provide grant funding to a client that has benefited from another Development Finance Institution to an amount above R500 000.00.
- NYDA will not provide a grant to an applicant who has been convicted of fraud.
Utilisation of the Grant Funding
The grant can be utilised for the following:
- To purchase movable and immovable assets.
- Bridging finance.
- Shop renovations.
- Working capital is paid directly to the grantee.
- Co-funding with legal entities only.
Grants will be granted to the following:
- Community Development Facilitation Projects
Service Delivery Standards
- The grant applications will be processed at a branch within 30 working days
- Disbursement for approval will be processed at the Head Office within 30 working days
- The NYDA shall conduct credit checks for all grant applications for funding.
- A grant applicant who is under debt administration shall not be considered for funding.
Branch Grant Approval and Review Committee (BGARC)
- The decision of BGARC are final and binding on the applicant
- The applicant cannot appeal the decision of the BGARC, however, they can re-apply for grant funding.
Download the NYDA application form here and begin your process of applying for funding to grow your business.