SMEs are key to enhanced economic growth and development in any nation. In South Africa, these companies are key to driving job creating and alleviating poverty.
It’s no secret that running an SME is no easy feat. Business owners face numerous challenges as they seek to grow their businesses. One of the main challenges faced is that of finance. Having access to working capital in the first few years of operating an SME isn’t very easy.
For many small business owners this means having to find sources of finance, either in the form of loans from family members and friends, or from financial institutions like banks or other specialist finance providers.
The Eastern Cape Development Corporation (ECDC) is a financial institution that acts as a link between the public and private sector. This entity has created a number of private sector development initiatives in the Eastern Cape.
ECDC Loans is a leading financial institution that provides financial resources at highly competitive rates. ECDC understands the challenges businesses encounter when seeking finance, over and above daily challenges.
Finance offered by the ECDC is not limited to organisation owners who are from the Eastern Cape only. Any business owner from across South Africa can apply. However, the business’ head office must be situated within the Eastern Cape province, so that jobs can be created for individuals and communities from there.
SME Loans from ECDC Loans are geared towards providing support, resources, investment and capital opportunities.
Loan amounts range from R500 to R20 million, with repayment terms of up to 7 years.
What are the qualifying criteria for SME Loans from ECDC Loans?
- Business headquarters must be in the Eastern Cape province
- Adequate management capacity
- Business viability
- Some collateral should be provided. Should 100% collateral be unavailable however, a loan may still be granted
ECDC is a services provider of choice for initiatives that bring a meaningful development impact to the Eastern Cape economy.