SEDFA, the Small Enterprise Development and Finance Agency, is the government agency for small business funding and support. It was formed on 1 October 2024, when sefa (the Small Enterprise Finance Agency), Seda (the Small Enterprise Development Agency) and the Cooperative Banking Development Agency (CBDA) came together as one body. It is a state-owned company, with the state as its sole shareholder, and it supports small enterprises and cooperatives.
If an article tells you to apply to sefa or Seda, it is out of date. Look for SEDFA instead, at sedfa.org.za.
What changed for a business owner
There is one agency to look for, not two. sefa was the finance side and Seda was the business support side. Both now sit inside SEDFA.
If you already had funding or support from sefa or Seda before the merger, ask SEDFA how it carries on. We have not found that set out on SEDFA's own pages.
What SEDFA funds
SEDFA lists asset finance and term loans, and bridging loans and revolving credit. These are loans, so they are repaid.
We have not found SEDFA's amounts or rates on its own pages, so this page gives none. Please check them with SEDFA before you plan around a number.
Who it is for
SEDFA says it supports small enterprises and cooperatives. We have not found its detailed rules, for example on ownership, size, turnover or sector, on the page we read. Check the current rules on SEDFA's site before you apply.
How to apply
Apply online on SEDFA's website ("Apply for Funding"), attaching your documents. SEDFA says it checks each application for credit, risk and legal matters. You can contact SEDFA on 086 010 3703 or at [email protected].
Ask SEDFA directly whether any fee applies. Be careful of anyone who asks you to pay them to "fast-track" a government funding application. If someone asks for money upfront, read our scam warning page first.
When SEDFA may suit you better than a private funder
- You can wait. Development funders can take months. For comparison, the NEF's own application form says its process takes "approximately 3 to 4 months". We have not found SEDFA's own timing, so ask.
- The total cost matters more to you than speed. Ask for the total cost in rand and compare it with a private offer.
- You want help running the business as well as money. Business support was Seda's job, and that work now sits in SEDFA.
When a private funder may suit you better
- You need the money in weeks, not months. A supplier wants paying, an order has come in, or a SARS date is close.
- You take regular card payments. A merchant cash advance (MCA) repaid as a share of your card takings may fit. See Merchant Cash Advance.
- The need is tied to one thing. An unpaid invoice, a confirmed order, an awarded tender or a bakkie each has its own type of funding. See funding types.
Speed usually costs more. Before you sign anything, ask for the total you will repay in rand, and compare it with any other offer you have.
Where we fit
We are a broker. We don't lend, and we are not part of SEDFA or any government agency. Applications to SEDFA go to SEDFA directly, on its own website. Our work is private funding for registered Pty Ltd companies and close corporations (CCs) that have traded for at least 12 months and need from R50,000.
Next step
If you need private funding as well, or instead, check your fit. It takes about 2 to 3 minutes and needs no documents to start.
Sources
- sedfa.org.za: : "On 1 October 2024, agencies: Small Enterprise Finance Agency and Small Enterprise Development Agency under the Department of Small Business Development, and the Cooperative Banking Development Agency from National Treasury, officially came together to form the Small Enterprise Development and Finance Agency
- stlm.gov.za: NEF "approximately 3 to 4 months