{"id":246128,"date":"2020-04-07T06:00:00","date_gmt":"2020-04-07T04:00:00","guid":{"rendered":"https:\/\/germistoncitynews.co.za\/246128\/eacci-on-the-department-of-small-business-development-debt-relief-fund\/"},"modified":"2020-04-07T06:00:00","modified_gmt":"2020-04-07T04:00:00","slug":"eacci-on-the-department-of-small-business-development-debt-relief-fund","status":"publish","type":"post","link":"https:\/\/develop.citizen.co.za\/germiston-city-news\/news-headlines\/2020\/04\/07\/eacci-on-the-department-of-small-business-development-debt-relief-fund\/","title":{"rendered":"Covid-19 – EACCI on the Department of Small Business Development debt relief fund"},"content":{"rendered":"

The Ekurhuleni Aerotropolis Chamber of Commerce and Industry (EACCI) took a closer look at the Department of Small Business Development debt relief fund and its effects on small businesses during the Covid-19 21-day lockdown.<\/p>\n

Also read: Covid-19 lockdown: journo ventures into Edenvale, Bedfordview during lockdown<\/a><\/p>

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CEO of EACCI Vincent Marino from Edenvale believes all businesses in the Small and medium-sized enterprises (SME) space will be affected, especially those where owners have no succession plan.<\/p>\n

\u201cAny business who closes its doors for 36 days will be affected, remembering problems will arise only a month or two later, if the lock-down is lifted, if not, we are definitely heading into uncharted territory,” said Marino.<\/p>

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Also read:\u00a0Infographic: To wear or not to wear? The Covid-19 mask quandary unpacked<\/a><\/p>\n

On the Department of Small Business Development debt relief fund, Marino questions whether it will get to the people it is intended to help.<\/p>\n

\u201cCurrently there seems to be too much red tape, and the debt relieve announcement by the president was painted with very broad strokes.<\/p>\n

“I would think if we\u2019re in an emergency, government needs to minimise the steps to get the relief,\u201d said Marino.<\/p>\n

Marino believes the demand may not be enough to sustain all small businesses affected.<\/p>\n

He examined how a small business will be able to demonstrate the impact up until the end of April.<\/p>\n

\u201cThe impact of the lockdown will only start to manifest itself possibly after April, which may be too late for businesses.<\/p>\n

“Many, if not most businesses, operate on a limited cash flow, question is, will this debt relief alleviate cash flow problems?<\/p>\n

“Most businesses will be scrambling to get their debtors to pay, and this cycle will carry on until a businesses can\u2019t pay.<\/p>\n

“The knock-on effect is going to be chaotic,\u201d said Marino.<\/p><\/blockquote>\n

Marino sees a potential problem, if government puts many obstacles in the way of accessing the funds.<\/p>\n

He wonders how these funds will be distributed, and suggests government gets assistance from bona fide chambers of commerce with the distribution of the relief funds.<\/p>\n

Effects on our economy in the long run, Marino said may come from the SME\u2019s trying to pay back the loans, while also trying to catch up with other credit payments, such as rent, water and lights and leases.<\/p>\n

Also read: Covid-19: The answer to rapid test results may be within reach<\/a><\/p>\n

\u201cThe bulk of our economy is made up of SME’s.<\/p>\n

“The fund is only going to support registered, which will cut out a large slice of the township economies,\u201d said Marino.<\/p>\n

He suggests other big South African multinationals help out, although many are keeping quiet at the moment.<\/p>\n

According to Marino, local businesses are going to have to change the way they do business.<\/p>\n

\u201cThey are going to have to get more creative in the way they attract and retain customers.<\/p>\n

“Each business will be different, there will be no ‘one size fits all’, what\u2019s important is a strategy needs to be an immediate and short-term implementation,\u201d said Marino.<\/p>\n

He added this is an opportunity for employees to learn to sell products or services online, which doesn\u2019t conflict with their current job.<\/p>\n

\u201cBusinesses can start by getting rid of unwanted household items, turn hobbies into cash generators, and start a blog and monetise it, set-up an E-commerce site, self-publish.<\/p>\n

“A simple search will find a host of opportunities,\u201d said Marino.<\/p>\n

On how Covid-19 and the lockdown has affected the EACCI, he said it is a new situation for everyone.<\/p>\n

For the moment, he said the EACCI is waiting on SACCI\/government to confirm if they are allowed to carry on issuing Certificates of Origin (CoO).<\/p>\n

Although he said this will affect only one staff member, as all other staff is on paid leave.<\/p>\n

In the meantime, he said the chamber has been offering moral and social support, as many businesses have asked a number of questions.<\/p>\n

The EACCI has tried to assist with information as well as debunking fake news on Facebook: Aerotropolis Chamber of Commerce and on their Whatsapp group.<\/p>\n

He added people are saving money by video conferencing and not travelling and can be a definite choice in the future for many.<\/p>\n

Marino included larger organisations as they look at the impact on their hotel, flights, car hire, meals and general motor vehicle expenses.<\/p>\n

\u201cThe world will change dramatically in certain respects going forward.<\/p><\/blockquote>\n

“People are learning new things and ways of doing things because they have to.<\/p>\n

“And surprising, in some cases it is making them more effective.<\/p>\n

“Until we are un-caged, try to look at different aspects of business life and how you believe it will change, and how you can turn it into a positive,\u201d said Marino.<\/p>\n

Marino recommends businesses register for the relief fund, although they must meet several criteria: (Box)<\/p>\n

\u2022They must be 100 per cent owned by South African citizens<\/p>\n

\u2022They should employ at least 70 per cent SA nationals<\/p>\n

\u2022They must be registered with the South African Revenue Service (Sars) and tax-compliant.<\/p>\n

\u2022 Priority will be given to businesses owned by females, the youth and persons with disabilities.<\/p>\n

Some of the details which companies are required to share include:<\/p>\n

\u2022 Annual turnover;<\/p>\n

\u2022 Shareholders (including current BEE standing);<\/p>\n

\u2022 Number of employees;<\/p>\n

\u2022 Employee demographics;<\/p>\n

\u2022 Sub-sectors.<\/p>\n

Dear reader,<\/em><\/p>\n

As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as \u201cfake news\u201d) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19.<\/em><\/p>\n

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