Part 2 of 8 · Products
SEDFA Loan Products: How Much You Can Borrow
SEDFA lends in two ways. Direct lending means SEDFA assesses and funds you itself. Wholesale lending means it funds an intermediary that lends to you. Knowing which channel you are in changes both the amount and the speed.
Part 2 of 825% through the guide
If you need a small amount, the wholesale channel — through a micro-finance institution, a retail finance intermediary or a co-operative bank — is often the faster route.
Direct lending runs from R50 000 to R15 million. Below R50 000 you are generally routed to an intermediary.
Section 3Direct lending products
| Product | What it funds | Notes |
|---|---|---|
| Term loan | Assets, expansion, start-up costs, acquisitions | Fixed or floating rate with a set repayment schedule |
| Bridging loan | Working capital against a confirmed order or contract | Only for business-to-business applicants holding a signed order |
| Asset finance | Plant, equipment and vehicles | Security is usually the asset itself |
| Structured finance | Deals that do not fit term or bridging parameters | Maximum term of five years |
Targeted programmes — where the cheaper money is
These are the products worth checking before you apply for standard direct lending, because several carry either a grant element or a discounted rate.
| Programme | Maximum | Rate | Who it is for |
|---|---|---|---|
| TREP Township and Rural Entrepreneurship Programme |
R1 000 000 | 5% fixed | Businesses trading in townships and rural areas. 50% of the approved amount is a grant, capped at R100 000. |
| Amavulandlela Funding Scheme | R15 000 000 | Prime less 5% | South African entrepreneurs with disabilities. Repayment up to 60 months. |
| SEMSP Small Enterprise Manufacturing Support |
R15 000 000 | Prime | Small manufacturers. 20% of the approved amount is a grant, capped at R2 000 000. |
| Inyamazane Funding Scheme | Varies | Varies | Military veterans establishing or growing enterprises. |
| Youth Challenge Fund | Varies | Varies | Young entrepreneurs, typically paired with mentorship. |
| Co-operative products | R5 000 000 | Risk-priced | Co-operatives, CFIs and co-operative banks. Capped at 15% of total assets. |
| Spaza Shop Support Programme | Varies | Varies | Township retail, stock and equipment support. |
| Business Recovery / Viability | Varies | Varies | Existing borrowers in distress needing restructure. |
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