W Cape launches R27m relief fund to help COVID-hit small businesses

The provincial government has estimated that 170 000 jobs will be lost due to the effects of the pandemic that has ravaged economies across the globe.

The Western Cape government has launched an R27 million relief fund to help small businesses hard-hit by COVID-19.

The injection is aimed at boosting both the formal and informal sectors to save much-needed jobs.

The provincial government has estimated that 170 000 jobs will be lost due to the effects of the pandemic that has ravaged economies across the globe.

“We know that times have been tough for businesses during the COVID-19 pandemic, and that is why, from the start, we have been working hard to support businesses, especially small businesses, to open safely and responsibly, so we can save jobs and save the economy in the Western Cape,” said the provincial government on Tuesday.

The grant will be used exclusively to subsidise business expenses such as fixed costs, operational costs, supplier debt and other pressure cost items.

It excludes payments of and towards salaries and wages.

The assistance afforded to formal trade will be capped at approximately R200 000 per business and R15 000 for informal establishments.

“The department reserves the right to determine a higher or lesser amount and the right to fund selected components of the approved application.”

However, businesses that have benefited from any government relief initiatives will not be considered for assistance from the Western Cape COVID-19 Business Relief Fund.

Meanwhile, the province has also announced a workplace safety campaign, which aims to encourage businesses to implement health and safety guidelines in the workplaces.

“With the move to alert level 1 which allows more businesses to safely open, this fund is an important step in our economic recovery plan to help businesses to rebuild and save jobs in the Western Cape.”

The province has urged business owners to apply before the closing date of 12 October 2020 at 10 am.

For more information on the Western Cape COVID-19 Business Relief Fund visit https://www.westerncape.gov.za/general-publication/western-cape-c-19-business-relief-fund. 

(With Inputs from South African Government Press Release)