Masisizane In-house Fund
A total of R80m has been set aside for the Masisizane In-house Fund.
What the Masisizane In-house Fund offers
- The loans will be limited to a minimum of R20 000, maximum R1 million (Credit Committee/ board approval required for amounts in excess of R1 million).
- Loans must be repaid over a 5-year period.
- Interest rate is prime less 5%.
- Ilima consultants will provide business support and mentorship.
- Free financial education is provided.
Eligibility for funding
- Sole Proprietor, partnership, CC, Company, Co-operative, Trust and self-employed groups.
- 51% Women-Owned.
- 51% of women and 75% of employees should be black.
- Should have a viable business plan.
- Should create significant jobs.
- Rural and peri-urban areas.
- Old Mutual staff are not eligible for funding from the Masisizane In-house Fund.
- Funding is provided on a discretionary basis by the Masisizane management and board where viable projects, for whatever reason, cannot be financed through other funds.
- No loans will be provided to fixed property arrangements and/or ventures that are (in the view of the fund managers) socially undesirable or irresponsible such as business with primary interests in tobacco, gambling, the sex industry and gaming.
What is the Process?
Application
The application has to be submitted and will be reviewed against the eligibility criteria.
Initial Project Review
An initial assessment will be done, based on the business plan submitted.
Due Diligence
An in-depth on-site evaluation of all information will be conducted to verify the information supplied by the applicant.
Terms and Conditions
The terms and conditions will be prepared/negotiated, based on a Credit Policy and needs to reflect critical understandings.
Internal Approval
The application will be presented and motivated to the Credit Committee for approval.
Contracting
On approval, the legal agreements will be drawn up for signature.
Disbursement
After all conditions precedent have been met, the funds may be drawn as per agreed milestones.
What is required of the applicant?
You will be required to complete a Business Plan with the following information:
Individual Details
- Copy of Identity Document.
- Proof of residential address.
General Information
- Contact details for shareholders and business.
- Details of all shareholders, including the group structure and applicable history of the business.
- Certified company documents including tax clearance certificate, vat certificate, etc.
- In the case of a co-operative, please provide all the details of the members of the co-operative.
- In the case of a trust provision, please provide details of the board of trustees.
Current Business Information
What does the business do? List and describe the products and services of the business.
Description of Project or Expansion Plan
- Indicate financing requirements.
- Indicate own contributions.
- Indicate jobs created/retained.
- Indicate location of project and viability.
Curriculum Vitae of Key Individuals involved
Information about the Directors, Shareholders, Executive Management, board of trustees or members of a co-operation needs to be provided.
Detailed Marketing Plan
Specify if you have negotiated procurement agreements and/or whether there is secure market for your product.
Detailed financial projections, including how the company foresees paying back the loan
Specify expected turnover, margins, when the company will become profitable. Express repayment as a percentage of gross turnover and net profit.
If this is an existing company, latest management accounts and audited 3-year financial statements
Provide the last 6 months’ bank statements.
Masisizane In-house Fund Contact Details
- Contact: Kela Makwetla
- Telephone: 011 217 1626
- Fax: 011 217 1652
- Physical Address: 2nd Floor, Isibaya Bld, Mutual Square, 93 Grayston Drive, Sandton, 2146.
- Postal Address: P.O. Box 781897, Sandton, 2146.
- Email Masisizane.