Entrepreneurship Finance product is aimed at providing start-up and expansion capital to new and existing businesses respectively that are owned and managed by black people
Funding instruments include term loans, quasi equity and equity finance
The key criteria of this product are:
- BEE applicants should be actively involved in the day-to-day management of the business
- Minimum black ownership of 50.1% is a requirement
- Business and/or industry experience by black entrepreneurs is also considered
- The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme where there is lack of business and/or Industry experience
- The business should be able to repay NEF’s investment
- Funding Instruments include term-loans, shares and other structures with ordinary share characteristics
- NEF funding is charged at prime linked interest rates
- Business must have a clear value-add with a sound business case
- Maximum NEF funding is R10 million
- The NEF will exit from the investment in 5 to 7 years
