Black Business Supplier Development Programme

1. Black Business Supplier Development Programme • Black • Business • Supplier • Development • Programme • BBSDP • Registered Network facilitators • www.bbsdp.co.za

2. the dti Department of Trade and Industry • The department of trade and industry has numerous programmes aimed at developing businesses in South Africa • The black business supplier development programme (bbsdp) is a cost sharing grant offered by the dti

3. What is the BBSDP? • It is a grant / gift to Black owned business (50.1%) • Ranging from R10 000 to R1 million • Split into 2 parts:- • Capex – to assist with the financing of plant and machinery • Training, ISO, Software, Mentoring, Marketing, etc

4. the dtiHow does it work? • The bbsdp is primarily aimed at black-owned businesses • (50.1% of shares must be Black owned) • The dti offers a grant of up to 25% of annual turnover • (to a max of R1million) to be used for the expansion of the business • The grant is free and non-repayable

5. the dti • 80% of the grant to be used as a deposit (35%) for the purchase of machinery & equipment – the balance (65%) to be financed by the applicant • 20% of the grant to be used for “soft” issues such as training, mentoring, software etc. Cost shared by the applicant on a 80/20 basis • 80/20 (80% free and paid to supplier by the dti) • (20% to be paid by applicant)

6. the dtiWHO QUALIFIES? • Ownership to be at least 50.1% black • Management team to be predominantly black (50%) • Turnover between R250k and R35million • Registered business for at least 1 year • Tax clearance certificate • Up to 3 years financial statements • Latest management accounts

7. the dtiOUR ROLE? • Alan is a registered Network Facilitator and member of Graphit cc AND Marc is the managing member of Moneyer Accounting and Business Consulting – registered supplier of accounting services, mentoring, training and software suppliers. • WE ARE THE LINK BETWEEN THE APPLICANT AND the dti

8. the dtiBBSDPOUR ROLE? • Ensure the applicant satisfies all qualifying criteria • Ensure all relevant documentation is submitted with the application • Assist with the completion of the application form • Perform company diagnostics to ensure it is a sound business • Submit application and follow up • Assist applicant in obtaining finance • DTI pays us a fee for doing the above

9. How much does an enterprise qualify for? • Quarter of it’s annual turnover to a max of R1mil. • Max of R800 000 as a 35% deposit for machinery • 65% to be financed by banks • Max of R200 000 on an 80/20% cost sharing

10. How much does an enterprise qualify for?examples R100 000 annual turnover R4,000,000 annual turnover • ¼ of turnover = R250 000 • 80% of R250 000 = R200 000 to be used as a deposit and the balance to be financed • 20% of R250 000 = R50 000 to be used for software, training, mentoring • ¼ of turnover = R1,000 000 • 80% of R1,000,000 = R250 000 to be used as a deposit and the balance to be financed. • 20% of R1 million = R200 000 to be used for software, training, mentoring

11. What is the qualifying criteria? • Ownership to be at least 50.1% black (Indian, Coloured, Black) • Management team to be predominantly black (50%) • Annual Turnover between R250k and R35million • CIPC Registered business for at least 1 year (CIPRO) • Tax clearance certificate Be compliant at SARS, • Trading for 1 year plus (Up to 3 years financial statements) • Latest management accounts • 3 months bank statements

12. Why the bank? • Can help each other get customers • Bank management and the dti management have agreed to support the bbsdp • The dti will provide a 35% deposit (25% required by bank) • We need a relationship at branch level to do business • Less risk for the bank • No contracts • Lets do business

13. Other dti incentives • EIP

14. Contact Us • Alan Torley 072 225 6835 • Marc Scougal 083 273 2377 • Vox 087 150 4618 • Fax 086 565 7538 • www.bbsdp.co.za • alan@bbsdp.co.za • marcscougal@yahoo.com