The Small Enterprise Development Finance Agency (SEDFA) is South Africa's primary government agency for SMME support, formed from the merger of SEFA, SEDA, and CBDA on 1 October 2024. This guide covers all SEDFA programmes, eligibility requirements, and application processes to help you access the right funding for your business.
Who This Is For
- Micro, small, and medium enterprises (EMEs and QSEs)
- Cooperatives seeking finance and development support
- Township and rural entrepreneurs
- Youth and women entrepreneurs
About SEDFA
The SEFA/SEDA/CBDA Merger
On 1 October 2024, three agencies merged to form SEDFA:
- SEFA (Small Enterprise Finance Agency) - Provided direct loans and wholesale finance to SMMEs
- SEDA (Small Enterprise Development Agency) - Provided business development support, training, and incubation
- CBDA (Co-operative Banks Development Agency) - Supported cooperative financial institutions
The merger aims to create a "one-stop shop" for SMME support, eliminating duplication and making it easier for businesses to access both finance and development services.
What Changed for Applicants
Key Changes
- Single application portal: Apply for finance and development support together
- Integrated assessment: Financial needs and capacity building assessed holistically
- Combined branches: SEFA and SEDA branches now operate as SEDFA centres
- New programmes: Several rebranded programmes with expanded scope
What Stayed the Same
- Core funding products remain available
- Eligibility criteria largely unchanged
- Provincial presence maintained
SEDFA Funding Programmes
1. Integrated SMME Finance
Overview
Core lending programme for established SMMEs needing working capital, asset finance, or expansion funding.
Funding Range
R50,000 to R5 million
Interest Rate
Prime to Prime + 5% (based on risk assessment)
Repayment Terms
12 to 60 months depending on loan type
Best For
- Working capital needs
- Equipment and asset purchase
- Business expansion
- Bridging finance for contracts
2. Township & Rural Enterprise Finance
Overview
Targeted support for businesses operating in townships, rural areas, and underserved communities with blended finance options.
Funding Range
R10,000 to R1 million
Special Features
- Lower interest rates (Prime - 2% to Prime)
- Grant component up to 30% for qualifying businesses
- Longer grace periods available
- Mobile application services in remote areas
Qualifying Locations
- Designated township areas
- Rural municipalities
- Nodes identified in spatial development frameworks
3. Youth Enterprise Development
Overview
Dedicated funding for youth entrepreneurs aged 18-35, combining finance with mentorship and business development.
Funding Range
R10,000 to R500,000
Special Features
- Up to 50% grant component for first-time entrepreneurs
- Mandatory business skills training included
- Mentorship matching programme
- Preferential rates for youth cooperatives
Age Requirement
Owner(s) must be 18-35 years old with at least 51% youth ownership
4. Women Empowerment Fund
Overview
Targeted finance for women-owned and women-led businesses with enhanced terms.
Funding Range
R50,000 to R2 million
Ownership Requirement
51%+ women ownership OR managed by women at executive level
Special Features
- Preferential interest rates
- Flexible collateral requirements
- Business development support included
- Networking events and market access support
5. Cooperative Development Support
Overview
Comprehensive support for registered cooperatives, combining finance with governance training and market linkages (formerly CBDA programmes).
Funding Range
R50,000 to R3 million per cooperative
Types of Support
- Start-up finance for new cooperatives
- Working capital for established cooperatives
- Governance and compliance training
- Market access facilitation
- Equipment grants for production cooperatives
Requirements
- Registered with CIPC as a cooperative
- Minimum 5 members
- Adopted constitution
- Active bank account
6. Technology Business Incubation
Overview
Incubation support for technology and innovation-driven SMMEs through SEDFA-supported incubators (formerly SEDA Technology Programme).
Support Includes
- Office/workshop space at subsidised rates
- Shared equipment and infrastructure
- Technical mentorship
- Business development support
- Seed grants up to R200,000
Duration
12-36 month incubation cycles
7. Business Development Vouchers
Overview
Vouchers redeemable at approved service providers for business development services (formerly SEDA Vouchers).
Voucher Values
R5,000 to R50,000 depending on service type
Eligible Services
- Business plan development
- Financial statement preparation
- Legal document drafting
- Website and digital presence
- Quality certification (ISO, HACCP)
- Product development and prototyping
Eligibility Requirements
General Requirements (All Programmes)
- South African citizen or permanent resident (for majority ownership)
- Business registered with CIPC (company, CC, or cooperative)
- Tax compliant (valid SARS TCS PIN)
- No adverse credit listings (ITC clearance required)
- Business operating in South Africa
- EME or QSE classification (turnover under R50 million)
Programme-Specific Criteria
| Programme | Additional Requirements |
|---|---|
| Township & Rural | Business located in designated township or rural area |
| Youth Enterprise | 51%+ ownership by persons aged 18-35 |
| Women Empowerment | 51%+ women ownership or women-led management |
| Cooperatives | Registered cooperative with 5+ members |
| Tech Incubation | Innovation or technology focus, accept incubation terms |
How to Apply
Step-by-Step Guide
- Pre-Assessment
Visit your nearest SEDFA branch or use the online portal to complete a pre-screening assessment. This helps identify the best programme for your needs.
- Registration
Create an account on the SEDFA online portal (sedfa.org.za) or register at a branch office. You'll need your ID and business registration documents.
- Application Submission
Complete the application form for your chosen programme(s). You can apply for finance and business development support simultaneously.
- Document Upload
Upload all required documents through the portal or submit at the branch. Incomplete applications will be returned.
- Assessment
SEDFA assesses your application, which may include a site visit and interview. For loans, credit assessment is conducted.
- Decision
You'll receive written notification of the decision with terms and conditions if approved.
- Contracting & Disbursement
Sign the funding agreement and receive disbursement. For loans, this typically goes directly to your business account.
Required Documents
- Certified copy of ID (all directors/members)
- CIPC registration documents (COR14.3, COR15.1)
- Tax clearance certificate (TCS PIN verification)
- 6 months bank statements
- Latest financial statements or management accounts
- Business plan (for amounts over R500,000)
- Proof of address (business and directors)
- B-BBEE certificate or EME affidavit
Processing Times
- Vouchers: 5-10 working days
- Small loans (under R500k): 15-30 working days
- Larger loans (R500k+): 30-60 working days
- Cooperative support: 20-40 working days
- Incubation applications: Intake cycles (apply in advance)
Tips for Success
- Get compliant first: Ensure CIPC, SARS, and COIDA are all in order before applying
- Be realistic: Request amounts you can demonstrate the need for and ability to repay
- Show traction: Evidence of trading history and revenue improves your chances
- Apply for multiple supports: Combine finance with vouchers and training for comprehensive support
- Visit a branch: In-person consultations often lead to better programme matching
Common Mistakes to Avoid
- Incomplete documentation (most common reason for delays)
- Expired tax clearance certificates
- Unrealistic financial projections
- Applying to the wrong programme for your business type
- Not following up on application status
Key Legislation
- National Small Enterprise Act (102 of 1996) - Defines SMME categories and establishes support framework
- Co-operatives Act (14 of 2005) - Governs cooperative registration and support
- B-BBEE Act (53 of 2003) - Influences targeting and preferential support criteria
Next Steps
Ready to Apply?
Browse live SEDFA funding programmes in FundingOS. Check your readiness before applying to identify any gaps in your documentation.
Need Help Applying to SEDFA?
Our network of funding consultants and business advisors can help you prepare your SEDFA application and develop a strong business plan.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation