It is recommended that any South African company in financial dire straits as a result of losing business due to the national lockdown seek assistance from its creditors. South Africa’s banks are currently offering various debt relief options to consumers and businesses alike, aimed at helping consumers and businesses weather the storm.
As a measure of support to South African businesses, most major banks are offering COVID-19 debt relief programmes, including payment holidays and the reduction of monthly payments.
Additionally, the Department of Small Business Development’s Debt Relief Fund and a Business Growth/Resilience Facility. These interventions have been designed to provide small businesses with relief on existing debts and repayments. This Fund will also assist entities to acquire raw material, pay labour and other operational costs. In order to qualify, an applicant must demonstrate a direct link to the impact or potential impact of COVID-19 on their business operations. Additionally, firms must be 100 percent South African owned and employ 70 percent South African workers to be eligible to benefit.