Sunday, March 29, 2020

COVID-19 Options for small business assistance

NB: WE ARE NOT REPRESENTING THE VARIOUS GOVERNMENT DEPARTMENTS

THIS IS MERELY TO GUIDE YOU TO THE VARIOUS OPTIONS THAT YOU MAY BE ENTITLED TO OVER THIS LOCK-DOWN PERIOD.


This blog site has been specifically created for small and medium sized businesses who are currently experiencing major challenges with the Covid-19 pandemic.

The Information is best to be viewed on websites that illustrate what needs to be done:


https://www.businessinsider.co.za/clothing-salaries-uif-2020-3

https://www.businessinsider.co.za/what-financial-help-can-i-get-coronavirus-2020-3

https://www.fin24.com/Opinion/andile-khumalo-what-must-i-do-for-my-employees-during-lockdown-20200330


The information below has been put together to obtain the most relevant and up-to-date details of how small businesses can benefit and be assisted over the next few weeks. 


Labour Department:

Firstly, you must register by emailing the following to the Department of Labour to notify them of the financial problems your business is experiencing due to the lockdown.

1. State the full name of your business.
2. State the formality of your business – IE whether you are a Pty, CC, Trust or Sole Proprietor.
3. State the nature of your business (restaurant/coffee shop/hair salon etc). 
4. State the number of employees you have and confirm your business has been shut down due to the lockdown as you are not an essential service.

Send the above information, on your business letterhead if you have one, via email to:

Covid19ters@labour.gov.za

You will then get a receipt email from the Department of Labour confirming your shutdown has been noted. Keep this reference in a safe place as systems can crash on either side. A printed version is also recommended.

The Department of Labour will also send you the relevant documents for your completion, which once done will need to be emailed back to them.

Debt Relief Fund:

If your business has suffered negatively over the lockdown, you can claim relief from the Department of Small Business. You must able to prove that you have suffered losses as a result of the lockdown due to Covid-19.

You must state that you will need assistance during this crisis. 

Please ensure that whatever decisions you have made or arrangements you have come to with your employees, have been documented and minuted (you may need this after the pandemic is over).

Register your business on the portal https://smmesa.gov.za 
The site is a drop-down registration process, and the completion is straightforward.

UIF fund

If you must implement a temporary layoff, or you cannot pay your employees, you can apply to the Unemployment Insurance Fund for the “National Disaster Benefit”.

This will pay your employees a flat rate of the minimum wage (R3500 per month) for a maximum of 3 months.

The PDF link for this is: http://www.labour.gov.za/DocumentCenter/Publications/Unemployment%20Insurance%20Fund/COVID19%20TERS%20Easy%20Aid_.pdf

The PDF government document regarding the temporary relief scheme is situated at: http://www.labour.gov.za/DocumentCenter/Regulations%20and%20Notices/Regulations/Unemployment%20Insurance%20Fund/COVID19%20Temporary%20Employee%20or%20Employer%20Relief%20Scheme%20%28C19%20TERS%29%202020.pdf

The following will need to be completed:

UI-19 and UI-2.7: to be completed by the employer.
UI-2.1: the application form.
UI-2.8: to be completed by the bank. This application must be accompanied by the employee’s ID and a letter from you, the employer, confirming that the business shutdown or temporary lay-off is due to the lockdown.

Once completed, email all the relevant documentation to:

wc.customercare@labour.gov.za and quote your UIF ref number in the Subject Line.

The Solidarity Fund

This fund has been set up to alleviate suffering caused by the COVID-19, but it does not mention assisting small business specifically. See the website, as they may make changes from time to time: https://www.solidarityfund.co.za

Business Partners

The one billion rand donation by Johan Rupert will assist business most likely via his Business Partners portal, although this has not been confirmed, it would be prudent to contact them via their website as well which is situated at: https://www.businesspartners.co.za/


Tourism Sector

This includes:
Hotels, resort properties and bed and breakfasts (B&B’s).
Hospitality and related services: restaurants (not attached to hotels).
Conference centres (not attached to hotels), professional catering. 
Tourist attractions.
Travel and related services: tour operators; travel agents; tourist guides; car rental companies; and coach operators.
The site is situated at: 
http://www.tourism.gov.za/AboutNDT/Ministry/News/Pages/COVID-19_interventions_for_the_tourism_sector.aspx

Essential Services applications and registration

Should you wish to register as an essential services provider, the website is situated at: http://www.bizportal.gov.za/essential_service.aspx

SARS Tax Relief


  • SARS has announced tax subsidies for private sector employees earning below R6,500 per month.
  • Accelerated payment of employment tax incentive reimbursements (from twice a year to monthly). Deferred payment of PAYE and provisional corporate income tax, for tax compliant businesses.
  • Temporary reduction in contributions to UIF and the Skills Development Fund.
  • Industrial funding from the Industrial Development Corporation.
  • Relief for those who have been infected with COVID-19


The website to apply for assistance if you have been infected with the COVID-19 website is situated at:
http://www.labour.gov.za/DocumentCenter/Publications/Compensation%20for%20Occupational%20Injuries%20and%20Diseases/Notice%20on%20compensation%20for%20Occupationally%20acuired%20corona%20virus%20under%20COIDA%20Amended%20Act.pdf