Getting rejected for funding doesn't mean the end. Most South African funders have formal appeal procedures allowing you to challenge decisions based on procedural errors, new information, or misunderstandings. This guide explains your rights, valid grounds for appeal, funder-specific processes, and strategies to strengthen your appeal case.
Who This Is For
- SMEs that have been rejected for funding and believe the decision was incorrect
- Applicants with new information or evidence not available during initial assessment
- Businesses that believe procedural errors affected their application
- Consultants helping clients navigate funding appeals
Understanding Rejections
Common Rejection Reasons
- Non-compliance: Tax, CIPC, or other regulatory non-compliance
- Incomplete documentation: Missing or insufficient supporting documents
- Ineligibility: Didn't meet programme criteria (sector, size, age, location)
- Weak business case: Poor business plan, unrealistic projections, no market validation
- Credit concerns: Adverse credit listings, insufficient collateral, poor repayment capacity
- Capacity concerns: Management team lacks experience, overambitious project
- Budget depletion: Programme ran out of funds for the year
- Better applications: Competitive programmes with limited slots
Valid Grounds for Appeal
Strong Grounds (High Success Potential)
- Procedural error: Funder didn't follow their stated assessment process
- Factual error: Rejection based on incorrect information (e.g., wrong turnover figure used)
- Misinterpretation: Assessor misunderstood key aspects of your business or application
- New material information: Significant new evidence not available during assessment (signed contract, new certification)
- Discrimination: Evidence of unfair treatment based on protected characteristics
- Inconsistent application of criteria: Proof other applicants with similar profiles were approved
Moderate Grounds (Medium Success Potential)
- Corrected compliance issues: You've now fixed the compliance problems cited
- Additional clarification: You can now explain unclear aspects better
- Improved business case: New partnerships, customers, or traction since application
Invalid Grounds for Appeal
Appeals will likely fail if based solely on:
- "I need the money" (need alone isn't grounds for overturning decision)
- "My business is good" (subjective opinion without new evidence)
- "It's unfair" (without specific evidence of procedural unfairness)
- Disagreement with assessment criteria themselves (criteria are policy, not appealable)
- Emotional appeals without addressing rejection reasons
- Budget depletion (valid rejection reason, not grounds for appeal)
When to Appeal vs Reapply
| Scenario | Recommended Action | Reason |
|---|---|---|
| Rejected due to procedural/factual error | Appeal | Strong grounds, likely to succeed |
| Rejected due to non-compliance, now fixed | Reapply (not appeal) | Fixing issue = new application, not appeal |
| Rejected for weak business case | Reapply after strengthening | Weak grounds for appeal without new evidence |
| Rejected due to budget depletion | Reapply next cycle | Valid rejection, appeal won't change budget availability |
| New major contract/evidence since application | Appeal (provide new info) | Material new information strengthens case |
| Rejected from competitive programme (limited slots) | Reapply next round | Other apps were stronger, improve and retry |
Appeal Timelines by Funder
| Funder | Appeal Window | Appeal Processing Time |
|---|---|---|
| SEDFA | 30 calendar days from rejection notice | 20-30 working days |
| DTIC | 60 calendar days from rejection | 30-45 working days |
| NYDA | 21 working days from rejection | 15-20 working days |
| NEF | 30 calendar days from decision | 30-60 working days |
| IDC | 30 calendar days from rejection | 30-45 working days |
The Appeal Process Step-by-Step
- Request Detailed Feedback
Within 5 days of rejection notice, request detailed written reasons for rejection. This helps you identify grounds for appeal.
- Review Grounds for Appeal
Analyze feedback against valid grounds (see section above). If you have strong grounds, proceed with appeal.
- Gather Evidence
Collect documentation supporting your appeal: original application, rejection letter, new evidence, proof of errors.
- Write Appeal Letter
Draft formal appeal letter addressing specific rejection reasons and providing evidence (see template below).
- Submit Appeal
Submit via funder's specified channel (usually email or portal) within appeal window. Keep proof of submission.
- Await Response
Funder reviews appeal (typically 20-60 working days). Some funders invite you to present your case in person.
- Appeal Outcome
Three outcomes: (1) Appeal upheld (application approved), (2) Appeal partially upheld (reconsideration), (3) Appeal rejected.
Documentation Required
- Original application reference number
- Copy of rejection letter
- Formal appeal letter (see template)
- Supporting evidence (new contracts, corrected documents, proof of errors)
- Updated business plan (if business case has improved)
- Legal/expert opinions (if claiming misinterpretation)
Writing an Effective Appeal
Appeal Letter Template
Subject: Formal Appeal - Application #[Reference Number]
[Date]
[Funder Name] Appeals Committee
[Address or Portal Submission]
Dear Appeals Committee,
RE: APPEAL AGAINST REJECTION OF APPLICATION #[REF NUMBER]
I am writing to formally appeal the rejection of my funding application (Reference #[X], submitted [Date], rejected [Date]) for the [Programme Name].
1. GROUNDS FOR APPEAL
I respectfully submit this appeal on the following grounds: [State specific grounds - procedural error, factual error, new information, etc.]
2. DETAILED EXPLANATION
[Address each rejection reason specifically:]
- Rejection Reason 1: [Quote from rejection letter]
Response: [Explain why this was incorrect/can now be addressed, with evidence] - Rejection Reason 2: [Quote from rejection letter]
Response: [Your response with evidence]
3. SUPPORTING EVIDENCE
I have attached the following supporting documents:
- [List each document]
4. REQUEST FOR RECONSIDERATION
Based on the above, I respectfully request that the Appeals Committee reconsider my application. [If requesting in-person hearing, state: I am available to present my case in person if required.]
Thank you for your consideration.
Yours faithfully,
[Signature]
[Name]
[Position]
[Company Name]
[Contact Details]
SEDFA Appeal Procedures
- Appeal Window: 30 calendar days from rejection notice
- Submit To: appeals@sedfa.org.za or via portal
- Process: Appeals Committee reviews (meets monthly)
- In-Person Hearing: Available upon request for amounts over R500k
- Final Decision: 20-30 working days
- Further Appeal: SEDFA Board (if committee rejects appeal)
DTIC Appeal Procedures
- Appeal Window: 60 calendar days
- Submit To: incentives@thedtic.gov.za (mark "APPEAL" in subject)
- Process: Internal review by different assessor + legal review
- Timeline: 30-45 working days
- Note: DTIC appeals often succeed if procedural errors occurred
NYDA Appeal Procedures
- Appeal Window: 21 working days
- Submit To: Via NYDA portal or appeals@nyda.gov.za
- Process: Provincial appeals committee reviews
- In-Person Hearing: Often granted, especially for grant programmes
- Timeline: 15-20 working days
NEF Appeal Procedures
- Appeal Window: 30 calendar days
- Submit To: appeals@nefcorp.co.za
- Process: Investment Appeals Committee (independent of original assessors)
- Presentation: Invited to present for appeals over R1m
- Timeline: 30-60 working days (thorough re-evaluation)
Strengthening Your Appeal
- Get independent review: Have lawyer or consultant review your appeal before submission
- Provide new evidence: Signed contracts, new customers, partnerships formed since application
- Expert opinions: If technical misunderstanding, get industry expert to confirm your position
- Fix compliance issues: Even in appeal, show you've corrected any compliance problems
- Demonstrate seriousness: Professional formatting, comprehensive evidence, clear argument
- Request in-person hearing: If available, face-to-face presentation often helps
After the Appeal Decision
If Appeal is Upheld (Approved)
- Proceed with contracting and disbursement as per normal process
- Thank the appeals committee
- Deliver on your commitments—appeals approvals are closely monitored
If Appeal is Partially Upheld
- Funder may request additional information or offer reconsideration
- Provide what's requested immediately
- Consider this a second chance—take it seriously
If Appeal is Rejected
- Request feedback on why appeal failed
- Decide whether to strengthen and reapply next cycle
- Consider alternative funders (rejection from one doesn't mean rejection from all)
- If you believe decision was legally unfair, consult lawyer about external escalation (ombudsman, court)
- Maintain professional relationship—you may reapply later
When Reapplication Is Better Than Appeal
Consider reapplying instead of appealing when:
- Rejection reasons were valid and fixable (non-compliance, weak business case)
- You need time to strengthen your application (gather more evidence, improve financials)
- Programme has new budget allocation in new financial year
- You've made significant business improvements since rejection
- Appeal deadline has passed
Reapplication Tips:
- Address every rejection reason explicitly in new application
- Reference previous application and show how you've improved
- Provide evidence of changes/improvements
- Apply early in new cycle (fresh budget, motivated assessors)
- Consider applying to different programme at same funder if more suitable
Next Steps
Need Help With Your Funding Appeal?
Get quotes from verified funding consultants who can help review your rejection, prepare appeal documentation, and strengthen your case.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation