NYDA Grant Programme

The NYDA Grant Programme is designed to provide young entrepreneurs with an opportunity to access both financial and non- financial business development support in order to enable them to establish or grow their businesses.


The programme focuses on youth entrepreneurs who are at intentional, promising and new stages of enterprise development.  Young people 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:
•  Mentorship
•  Business Consultancy Services
•  Market Linkages
•  Business Management Training Programme
•  Youth Co-operative Development Programme
•  Individuals or Enterprises which require funding less than a R1000 or 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 R1000,000.00
•  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 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 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 paid directly to the grantee.
•  Co-funding with legal entities only.

Grant types
Grants will be granted to the following:
•  Individuals
•  Co-operatives
•   Community Development Facilitation Projects
 
Service Delivery Standards
•  The grant applications will be processed at a branch within 30 working days
•  Disbursement for approved will be processed at the Head Office within 30 working days

Credit Checks
•  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)
Decision

• 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

Hello World!

The qualifying criteria includes:

• Are youth 18-35 years

• Youth with skills, experience or; with the potential skill, appropriate for the enterprise that they conduct or intend to conduct.

• Are South African citizens

• Are resident in South Africa;

• Members of entities should comprise 100% south African youth citizen

• Operate business within the borders of South Africa.

• 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 fulltime employee of the business, especially the main applicant.

• Have completed life skills training and business management training programmes or related programmes as per recommendation from client(s) assessment.
• Have a business mentor and/or a coach approved by NYDA or must be allocated a business mentor by NYDA post application approval.
• Have relevant qualifications or business and/or technical experience including proven entrepreneurship business experience where applicable.

• Require the grant for a viable business idea.

• Previous NYDA Micro Loan Clients who accessed loans up to a maximum of R50,000 with paid up accounts will be eligible to access grant funding.
• Operate either informally or formally; generally recognized as micro enterprises (e.g. street traders, vendors, emerging enterprises);
• Have a profit motive and are commercially viable and sustainable;

• Individual entity must have a bank account.

• For cooperatives, they must have or be willing to form a group of minimum 5 persons.
• Upon approval of grant, if applicant is employed full time, he/she may be required to resign from employment and provide grant officer with proof of resignation;
•  Where the entity constitutes more than one member, this will apply to the member with highest shareholding and is operationally involved in the business.
• Require grant from NYDA of not less than R1,000.00 and not more than R200,000.00 (for cooperatives the maximum threshold is R250,000) for individuals and companies and the following thresholds apply:

Thresholds    Type of businesses    Grant amount ranges

Threshold 1    Idea generation and survivalist (start-ups)    R1,000 – R10,000

Threshold 2    Start-ups PTY and cooperatives    R10,001 - R50,000

Threshold 3    Growth stage PTY and cooperatives    R50,001 - R100,000

Threshold 4    Expansion stage PTY and cooperatives    R100,001 – R200,000*

*for agriculture and technology related projects the maximum threshold is R250,000.00

N.B: Threshold submissions requirements applies

 

Application Process/Procedure

• You must apply 3 months before you turn 35 years.

•  Submission of all required documentation

•  Proof of attending Business Management Training course.
•  Business Pitch presentation of 10 minutes – in person or telephonically.
• Due Diligence assessment conducted by the NYDA official on the business.

Application Process/Procedure

• You must apply 3 months before you turn 35 years.

•  Submission of all required documentation

•  Proof of attending Business Management Training  course.
•  Business Pitch presentation of 10 minutes – in person or telephonically.
• Due Diligence assessment conducted by the NYDA official on the business.


How to access the NYDA Grant Programme

- Contact our Call Centre on 0800 52 52 52.

- Or visit your nearest NYDA branch.

- Application Form