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
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,
• Business Consultancy Services
• Market Linkages
• Business Management Training Programme
• Youth Co-operative Development Programme
The NYDA Grant Funding program excludes the following forms of funding requests:
• 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
• 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
• 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
• 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.
Grants will be granted to the following:
• 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
• The NYDA shall conduct credit checks for all grant applications for
• 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