3. NYDA Funding Exclusions
Grants are not given to businesses that fall within illegal or ill-reputable activities like gambling, drugs, arms, sex trade. Included in the exclusions of the NYDA grant funding programme are enterprises which requires less than R1000 for funding, partial funding, co-funding or funding towards a deposit loan from another lending organisation.
Another factor to keep in mind is that business are ineligible if they have a contract or bridging finances, or have NYDA staff members or Board Committee Members or Members of the Accounting Authority that are part of management.
If a staff member’s relative were to apply for funding, the staff member would have to recuse themselves from the pre and post approval process.
Additionally if your business falls within the gambling, gaming or sex industries, and/or operates illegal activities it is ineligible including:
- The sales of tobacco as the primary source of income.
- The sales of alcohol as the primary source of income.
- If your business is an investment trust or venture capital/private equity funds.
Your business will be ineligible if you require the funding to:
- Substitute an existing financier.
- Have NYDA issue a guarantee in favour of a third party.
- Become seed capital for research and development.
Your business will also be excluded if your shareholders/ members of your team lack contractual capacity because of:
- Being of unsound mind.
- Have a record for fraud or corruption.
- If you, as the owner, are an un-rehabilitated insolvent.
- If you, as the owner, are attending school other than tertiary.
- Pyramid sales schemes.
Equally important, NYDA won’t provide funding for a vehicle of any kind.
You will not be able to use NYDA funds for the following:
- To pay a bribe.
- Re-finances any of your existing loans.
- Any material purpose not declared in the application for grant or defined during the due diligence stage and detailed in the approved Terms & Conditions, unless where NYDA has supplied written approval.
- To settle overdue or outstanding South African Revenue Service liabilities, whether current on non-current.
However the grant may cover working capital, asset finance and stock purchases.