Specific Exclusions
The NYDA shall not consider the following for Grant Funding:
· 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
- 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.