Finance by the National Youth Development Agency
Enterprise Finance aims to promote entrepreneurship among young people, so it provides funding to youth aged 18-35 years old to help them start a new business or grow an existing one. Finance is provided directly and through partners.
Eligibility for funding is based on the following requirements:
- Youth (aged 35 and younger) must hold greater than 26% of the shares in the company and be operationally involved in the business
- Must be a previously disadvantaged South African youth
- Must demonstrate commitment to the venture
- The venture must be economically viable
- The following types of ventures are excluded from funding: Gambling, Tobacco & Property development and illegal practices.
If you meeting these criteria, complete a business plan according to the NYDA's Business Plan Guideline and submit it to the office closest to you.
The micro-finance's biggest aim is to promote entrepreneurship among young people, so it provides loans ranging from R1000 to R100 000 to youth aged 18-35 years old, so that they can start a new business or grow an existing one.
The loan is divided into 8 different products where finance is structured according to the amount requested, affordability indicators and the type of finance required, i.e. asset finance, working capital finance or contract-based finance. The terms are then tailored around the individual’s requirements.
To apply for a micro loan, the entrepreneur must:
- Be a South African aged 18 to 35, who is or plans to be very involved in the business
- Supply proof of your residential address, your ID and you will be required to undergo a credit check.
- Provide an application form and a business plan, and be able to show that your new or existing business will be able to repay the loan.
The loan officers at the branches can assist with completing the necessary application criteria. To find a branch near you, visit the NYDA website.
Source: National Youth Development Agency Website.