Jonathan Oppenheimer on exactly how the R1bn lifeline for small businesses works
The Oppenheimer family has contributed R1 billion to the Trust aimed at lessening the economic impact of the Covid-19 pandemic.
The Trust will provide financial support to the employees of small, medium and micro-sized enterprises (SMMEs) whose jobs are on the line.
The fund will be available to South Africa's SMMEs businesses impacted by the coronavirus from Friday, 3 April 2020.
Jonathan Oppenheimer says small businesses can apply directly from Absa, Standard Bank, FNB or Nedbank.
Here's how it works, according to Oppenheimer:
- Small businesses can apply for funding of R750 per employee per week, for a period of 15 weeks.
- The funds will be disbursed as interest-free loans over a five-year term.
- The loans will be subordinated to any other pre-existing debt.
- If applicants are successful, the money should be paid within 48 hours.
- The money will be paid out directly to the employees' bank account.
To apply, banks will require information including company identification and registration details, PAYE numbers, Income tax numbers and proof of employment.
Oppenheimer says it was important for his family to stand alongside South Africans during this crisis.
He has commended South Africa's major commercial banks, National Treasury and the SA Revenue Service (SARS) for the roles they have played in facilitating this process.
The SMME that applies and puts forward these people's names is taking on a loan.Jonathan Oppenheimer/ Co- Founder at Oppenheimer Generations
It's an incredibly generous loan. It's for five years, it's interest-free and it's subordinated to any other debt in their business.Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
It's very concessionary financing... but it is still debt.Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
It's R750 a week for 15 weeks. That's basically the take-home pay that someone would receive.Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
R1 billion is a nice number but it's not nearly enough.Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
The South African Future Trust is in consultation with banks... It has used them to distribute that money.Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
The family is providing R1 billion to that Trust. The money arrived in that account today [Tuesday].Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
To get the SARS and Treasury to agree [to] the payments to employees, which is what this Trust is intended to do during this crisis, in a way that is super efficient so that every rand ends up their pockets so that they can buy food, has just been amazing.Jonathan Oppenheimer/ Co- Founder at Oppenheimer Generations
Our belief as a family is that the fingerprints that we've left on South Africa, when we've stood up in moments of crisis - like now, will be the fingerprints that are left on history.Jonathan Oppenheimer, Co- Founder - Oppenheimer Generations
Listen to Jonathan Oppenheimer on The Money Show with Bruce Whitfield:
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