dsbd.gov.za Co-operative Incentive Scheme : Department of Small Business Development.

dsbd.gov.za Co-operative Incentive Scheme : Department of Small Business Development.

Organisation : Department of Small Business Development.

Facility : Co-operative Incentive Scheme

Website : http://www.dsbd.gov.za/?page_id=1220

DSBD Co-operative Incentive Scheme

** The Co-operative Incentive Scheme (CIS) is a 100% grant for registered primary co-operatives (a primary co-operative consists of five or more members).

Related / Similar Scheme : DTI Employment Creation Fund

** The objective of the CIS is to improve the viability and competitiveness of co-operative enterprises by lowering their cost of doing business through an incentive that supports Broad-Based Black Economic Empowerment.

Objectives

** Promote co-operatives through the provision of a matching grant;

** Improve the viability and competitiveness of co-operative enterprises by lowering the cost of doing business;

** Assist co-operatives to acquire their start up requirements;

** Build an initial asset base for emerging co-operatives to enable them to leverage other support; and

** Provide an incentive that supports broad-based black economic empowerment.

Eligible Activities Through The Grant

** Business development services (e.g. feasibility studies; business, manufacturing and production systems; and production efficiency and improvement, etc);

** Technological improvements;

** Machinery, equipment and tools;

** Commercial vehicles;

** Infrastructure linked to the project (e.g. 3-phase electricity; boreholes, etc.); and

** Working capital.

Who Benefits / Eligible Criteria

Eligible entities should :

** be incorporated and registered in South Africa in terms of the Co-operatives Act of 2005;

** be emerging co-operatives with a majority black ownership;

** have projects in any of the different economic sectors;

** adhere to co-operative principles;

** be owned by historically disadvantaged individuals (HDIs); and

** be biased towards women, youth and people with disabilities.

CIS Application Checklist

1 Completed & signed Application Form

2 SARS Tax Clearance Certificate- Original & Valid

3 Detailed business plan

4 Co-operative resolution to apply for CIS grant

5 Three competing and comparable quotations

6 Copy of Co-operative Constitution signed by founder members

7 Directors’ copies of CV’s and certified copies of IDs

8 Copy of Co-operative registration certificate

9 Motivation letter for choosing higher quotation(s)

10 Motivation letter for submitting one quotation

11 Bank Statement for start-up (confirmation letter from the Bank) Bank Statement for expansion (3 months statement)

12 Projected Financial Statement for (Start-ups) Financial Statement for Expansions (Existing)

Application Form

This will be a duly signed (by authorised person as per the constitution of the co-operative), formal submission by the applying co-operative to indicate the intention to participate in the CIS. The online application form is available on the Department: Small Business Development

Proof of registration :

Applicants must provide proof of registration in the form of a certificate of registration, indicating the name of the co-operative, its registration number, information about the registered office and the names of directors.

Proof of decision to apply for funding :

The applying co-operative must be able to provide a resolution for it to apply for the CIS. This could be by way of attaching the minutes of meetings of the Co-operative Board or sessions during which during which the decision to apply for the grant was taken.