GEP, the enterprise finance source
GEP or Gauteng Enterprise Propeller – Governments and other relevant economic institutions around the world have recognised the key role that small, medium and micro enterprises play in economic development and empowerment of citizens. In South Africa, this sector of the economy continues to employ millions of people and contribute about 30% towards the country’s gross domestic product.
The above situation has been the driving force behind the Gauteng Enterprise Propeller (GEP). GEP provides Micro Finance loans to start-up and existing businesses that are positioned to contribute towards job creation and poverty eradication in Gauteng province. These loans are provided as contract finance, bridging finance, invoice discounting, project finance, start-up finance, expansion finance and franchise.
This enterprise credit is provided from a minimum amount of R10,000 to a maximum amount of R350,000 with a repayment period of 36 months and annual fixed interest rate of 8%. These loans are provided subject to collateral but GEP determines the collateral required on the basis of a feasibility repayment structure of each project, this is done in conjunction with the overall risk profile of the project. An initiation fee is also charged on all applications above R24,000 and the fee for funds below R24,000 is determined according to recommended NCR fee table.
To qualify for this credit, a prospective client should be a South African citizen, be based in Gauteng, have a 51% black equity ownership, business enterprise should be owner managed, the owner must have skills or experience relevant to the business venture, business venture must be financially viable and show ability to service the loan through agreed repayment plan, business owner should also demonstrate strong commitment to sustain and grow the business.
The application process for this finance is easy, a client should fill in an application form and sign it, attach supporting documents and submit by mail or through GEP regional offices. Supporting documents include certified ID copies of members or directors, company registration documents, original unexpired tax clearance certificate, applicable compliance documents such as CIDB certificates, liquor license, trading license, lease agreements, signed contracts, valid purchase orders, SLAs, all existing businesses must submit certified and audited financial statement as well as management accounts, both start-up and existing businesses must submit 36 months cash flow projections, 3 x quotations for all CAPEX requirements, a breakdown for all working capital such as salaries per employee should be submitted, loan applications for amounts below R50,000 should submit business profile and applications for funds above R50,000 should be accompanied by a comprehensive business plan.
Gauteng Enterprise Propeller can be contacted on 0110852001.
