Department of Trade, Industry and Competition (the dtic) – September 2022

The objective of the APSS is, inter alia, to stimulate investment by South African furniture manufacturers to achieve:

• Increased capacity
• Modernised machinery and equipment
• Broadening participation
• Employment creation
• Competitiveness and productivity improvement

The scheme offers a reimbursable grant of between twenty percent (20%) up to a thirty percent (30%) cost sharing grant to a maximum of Twenty million rand (R20 million) over a two (2) year investment period, with the last claim to be submitted within six (6) months after the final approved milestone.

the dtic may consider an additional 10% grant for projects that meet certain Economic Benefit Criteria.

The APSS offers support on a cost-sharing basis towards:

• New machinery and equipment
• Commercial vehicles
  Buildings
• Competitiveness improvement costs

Please click on the link below to view the:

• Interpretation notes
• APSS Guidelines
• Terms and Conditions
• APSS Application Form
  & Annexure
• Financial statements format requirements
• Required documents for claims

> click here for more information and to download documents <

Industrial Development Corporation (IDC)

The FICF is available to qualifying furniture manufacturers in the following sub-sectors:

• Case Goods
• Kitchen and built-in cupboards
• Mattresses and bedding
• Office furniture
• School furniture
• Upholstered furniture

The purpose of the fund is to assist qualifying furniture manufacturers to:

• Improve their competitiveness.
• Survive the current economic downturn.
• Increase localisation of production activities within the value chain.
• Promote economic inclusion to support equitable economic growth, and
• Maintain and increase current employment.

Funding can be applied to:

• Capital equipment

            > Increase capacity.
            > Modernisation of plant.
            > Upgrade to meet quality requirements.

• Working capital

• Process and system improvements

            > Efficiency and productivity optimisations.
            > Industry quality certification and standards.
            > Environmental standard adherence.

For further details of the fund email Thabo Moloi at thabom@idc.co.za

Localisation Support Fund (LSF)

SAFI is grateful to LSF for its ongoing support of the furniture manufacturing industry.

Following the successful LEAN manufacturing webinar series and the subsequent on-site support during the 2023 year, the LSF, while recognising that the ongoing challenges faced by the furniture manufacturing industry, has offered to extend the on-site LEAN manufacturing consulting support to successful applicants.

Applications are now open to all manufacturers registered with a Furniture Bargaining Council and not only those who attended the webinar series.

The LSF prioritises the local production of goods by catalysing strategic localisation initiatives through industry research and the deployment of specialist expertise and technical resources.

Your application will be considered if you qualify in any of the following criteria:

• Are South African based.
• You need industrial research.
• Are able to demonstrate demand in the product category for localisation.
• Provide evidence of your local manufacturing capability and capacity to deliver as well as any constraints.
• Articulate the support required from the LSF and the potential impact.
• A walk to delivering a competitive locally produced product.

Applications will be subject to a thorough due diligence by the LSF prior to deciding whether or not to approve the application.

Applications must be completed on a Request for Assistance (RFA) form, available at https://www.lsf-sa.co.za/applytolsf . Return all completed RFAs to info@lsf-sa.co.za.

Manufacturers are encouraged to submit an application to the LSF as LEAN is a method of optimizing flow within a business, to minimize throughput time from Input stage to Output by constantly identifying and eliminating waste within the process with a resultant improvement in efficiencies in the manufacturing process.

The Small Enterprise Finance Agency (SOC) Limited (sefa) provides financial products and services to qualifying SMMEs and cooperatives, as defined in the National Small Business Act of 1996 and amended in 2004, through a hybrid of wholesale and direct lending channels within the furniture manufacturing sector.

A. Direct Lending Products (loans) to small and medium-sized enterprises (SME’s), operating in, inter alia, the furniture manufacturing industry. The facilities range from a minimum of R50,000 to a maximum of R15 million.

Asset Finance:

• To finance business moveable assets (machinery and equipment). The assets must be identifiable by means of serial numbers.
• The maximum term is the earlier of 60 months or the economic life of the asset.
• Benefits: a. Acquire or lease equipment without affecting your bank balance. b. Assets acquired can be used by sefa as security for the loan.

Term Loan:

• To purchase other forms of moveable assets e.g. not identifiable by means of serial numbers, such as office furniture.
• Benefits: a. Purchase fixed assets, such as equipment used in the production process. b. Assets acquired can be used by sefa as security for the loan.

Bridging Loan:

• Short-term loan to finance working capital e.g. stock or operating overheads.
• Mainly suitable for businesses that have secured contracts (purchase orders) with other businesses.
• Benefit: a. Allows the business to meet short-term financial obligations by providing immediate cash flow.

Revolving Loan:

• A line of credit where the borrower is allowed to use the funds when they are needed.
• Given in advance to sefa’s existing clients with a satisfactory cred it record, who have contracts with a predetermined lifespan and monetary value.
• Mainly use for operating purposes and the loan amount varies from month to month, depending on the client’s current cash flow needs.
• The maximum term is 12 months or dependent on the duration of the contract.
• Benefit: a. Repayments are structured in relation to the business’s cash flow projections.

> click here to register and apply <

Targeted at growing townships, rural towns and villages’ economies, by providing support to, inter alia, small-scale furniture manufacturers.

Financial support:

• Funding to purchase machinery and equipment for the various manufacturing sub-sectors that will be supported.
• Working capital for the various manufacturing sub-sectors that will be supported.
• Funding for product accreditation, certification and testing.

Funding terms:

• Funding of up to a maximum of R15-million per small enterprise, up to 20% of the amount may be provided as a grant were necessary.
• The term of the funding will be determined by the business’s cash flows, a repayment period of up to 84 months per small enterprise, and a capital and interest moratorium period of up to 6 months.
• The loan will be repayable at prime lending rate.

Funding criteria used in assessing each application:

1. Company statutory documents
2. FICA documents
3. Certified copies of ID of directors/members
4. 6 months’ bank statements
5. Latest AFS and/or Management Accounts not older than 3 months from date of application (Statement of Financial Performance and Statement of Financial Position) – where applicable
6. Business profile
7. Project Execution Plan
8. 12 months’ cash flow projections (with clear assumptions) – where applicable
9. Copy of Lease Agreement or proof of ownership
10. Relevant industry certification – where applicable
11. Copy of Contract or Purchase Order
12. Facility statements of other funders – where applicable
13. Quotations for applied funding – where applicable

Qualifying Criteria applicable to each application:

1. Be a registered legal entity in South Africa in terms of the Companies Act, 1973 (as amended.
2. Close Corporations Act, 1984 (as amended); and the Cooperatives Act, 2005 (as amended).
3. Be 100% owned by South African citizens.
4. Have been in operation for at least two years.
5. Be predominantly black-owned (51%).
6. Have a predominantly black management team (51%).
7. Be registered and compliant with the South African Revenue Service (where applicable).
8. Must be registered on the National SMME Database – https://smmesa.gov.za.

> click here to register and apply <

The YCF provides support to eligible youth businesses/enterprises.

Eligibility criteria:

• Are between the ages of 18 to 35 years.
• Registered with CIPC and be prepared to register with SARS & UIF.
• 100% South African owned.
• Are adequately involved in the day-to-day operation and management of the business with at least one or more of the members being a full-time employee of the company, especially the majority shareholder or essential personnel/applicant.
• Prepared to participate in Business Development Support and mentorship (pre and post).
• Commercially viable, sustainable and feasible business idea.

Exclusions:

• Funding towards a debt owed by the applicant with another lending institution (existing debt).
• Activities that have already been funded by other government departments or parastatals (double-dipping).
• Government and SOE officials.
• Fall within the gambling, pyramid sales scheme, loan shark and operates illegal activities etc., as guided by credit policy and grant policies.
• Have a record of fraud and corruption.
• Where the owner/applicant is an unrehabilitated insolvent.

> download the Youth Challenge Brochure <