The NYDA, the National Youth Development Agency, is the government agency for young South Africans. Its website lists two programmes that matter to a business owner: the "NYDA Grant Programme" and the "NYDA Voucher Programme".
Who can get an NYDA grant
The NYDA Grant Programme is for South African citizens aged 18 to 35. You must apply at least three months before you turn 35, complete the NYDA's business management training, pitch your business for 10 minutes, and pass a due diligence and credit check.
Businesses with annual turnover over R750,000 can't get a grant (R1 million for cooperatives), and nobody can receive more than R200,000 in grants over their lifetime (cooperatives and some agriculture and technology projects can go higher).
For a voucher, the NYDA says the business should be 100% youth owned, with every member aged 18 to 35. Check the grant rules with the NYDA, as they can change.
A grant is not a loan
A grant usually doesn't have to be paid back. That is its big advantage. It also comes with rules on who can apply and what the money can be used for. For example, a grant can't be used to pay SARS debts or to refinance loans.
The other funders on our SEDFA and IDC, NEF and Business Partners pages mainly offer loans, which you repay.
Treat a grant as a bonus if it comes, not as the plan for paying a supplier next month.
A voucher is different. It doesn't give you cash: it pays an NYDA-approved provider for business support, such as a business plan, a feasibility study, a website or an accounting system. Vouchers range from R6,600 to R19,800, and the NYDA says there is no contribution fee.
Most private funders want to see a trading history first. Keep that in mind if you are also thinking about private funding.
How to apply
Apply on the NYDA portal, at a branch, or call 0800 58 58 58. The NYDA says it processes applications within 30 working days. If approved, the NYDA says it pays out within a further 30 working days.
Nobody should charge you a fee to get you an NYDA grant. Apply to the NYDA directly, on its own website, and be wary of any site that says every small business qualifies. If someone asks for money upfront to get you funding, read our scam warning page first.
When the NYDA may suit you better
- The business is new. If you have traded for less than 12 months, we can't help yet, and a youth programme may be a better place to start.
- You need a small amount to get going. A grant you don't repay costs less than any loan or advance, if you qualify and can wait for it.
- You want support as well as money. The NYDA's training is part of the grant process, and its voucher programme pays an approved provider for business support.
When private funding may suit you better
- You have traded for 12 months or more as a registered Pty Ltd company or close corporation (CC), and you need from R50,000.
- You need the money for something specific and soon, such as stock, an order you have won, or an invoice a customer hasn't paid yet.
- You don't meet the NYDA's rules, for example on age or turnover.
Private funding has to be repaid, with a cost on top. Ask for the total you will repay in rand before you sign.
Where we fit
We are a broker. We don't lend, and we are not part of the NYDA or any government agency. Grants are not one of the funding types we cover: apply for those to the NYDA directly. Our work is private funding for registered Pty Ltd companies and CCs that have traded for at least 12 months and need from R50,000.
Next step
If your business has traded for at least 12 months and you need private funding, check your fit. It takes about 2 to 3 minutes and needs no documents to start. If it hasn't, start with the NYDA.
Sources
- nyda.gov.za: : "Are youth from 18-35 years of age
- nyda.gov.za: : one-on-one business development support "through NYDA approved business consultancy service providers
- nyda.gov.za: menu lists "NYDA Grant Programme" and "NYDA Voucher Programme
- idc.co.za: : services list of loans, equity, quasi equity, guarantees and sector specific schemes, no grant
- sedfa.org.za: : funding list "Asset Finance & Term Loans", "Bridging Loans & Revolving Credit