Business grants are not as many as loans in the financial market. Getting a business grant is way harder than getting a loan. NYDA (National Youth Development Agency) grant has proved to work for many small businesses in South Africa. NYDA puts youth first, their grant is made to empower small business owners under the age of 35.
The NYDA grant may be your best bet to grow your small business as a business owner under 35. The great thing about the grant is that you don’t need to pay back any of the money granted to you back. The aim is to stabilize your small business or help it move from one stage to another.
What is good about the NYDA grant is that it funds start-ups too. It is very rare for anyone to get such an opportunity to grow their idea without having to pay any of the money given to start the business back. The grant further borrows grant receivers money to help them grow their business, however, 2nd funding comes as a loan and requires repayment.
What is NYDA Grant?
NYDA grant is a (National Youth Development Agency) grant program that is designed to provide young entrepreneurs with an opportunity to access both financial and non-financial support for their businesses. The grant is available to South Africans that are between the ages of 18 – 35 years.
NYDA has made the grant application easier than before by creating an application form that is question and answer based. Applications are available for those that qualify. As a youth, you must either have a micro or small business that operates or an idea to start a business.
Businesses that are funded by the grant are those that are deemed to have the possibility of making a profit in the future. The business must also be able to create employment for other South Africans. NYDA grant can be seen as a gift that keeps on giving, helping one entrepreneur to create employment for the community.
Why you should consider NYDA Grant
NYDA grant provides an opportunity for young South Africans to excel. Youth is given money to start businesses or grow their businesses under this grant. The grant starts from R1,000.00 to R250,000.00 and money is allocated according to the type of project one wants to embark on.
The NYDA grant should be considered by those under 35 because it targets them. The grant doesn’t require one to have any skills but rather have a potential skill set, appropriate for the business the enterprise conducts or intends to conduct. Skills and experience are not exactly part of the requirements but it is a plus if you have the necessary skills and experience.
Furthermore, the grant only demands that you be a South African. This fund provides a starting point for young entrepreneurs to climb the business ladder. The application process is easy with only 3 – 4 sections to complete on the application form.
Much is not required to start your application. Only a few things are needed. Unlike applying for a business loan, you will only need relevant documents to accompany your application. There are no financial statements required, no business plan required or management statements required but attention enough to fill in the application form.
Who qualifies for the NYDA Grant?
To qualify for the NYDA grant, you need to be between the ages of 18 and 35. You must apply for the grant 3 months before you turn 35 years, otherwise, your application will be declined. Note that individuals, companies, close corporations, and co-operatives can apply for the grant.
Members, sole proprietors, partners, or directors need to be between the ages of 18 and 35. Community development facilitation projects also qualify for the NYDA grant.
NYDA Non-financial Support
Non-financial support is given to young people whose business ideas qualify for the NYDA grant program. Non-financial support is granted based on individual needs. This is because not every business requires the same help. As young entrepreneurs, you will acquire new skills and learn how to manage your business.
Non-financial support may include the following:
- Mentorship to help you cope,
- Business consultancy services that help you administer your business,
- Business management training program that will help you become business savvy,
- Youth co-operative development program, and
- Market linkage so that you can meet other players in the market.
Who doesn’t qualify for the NYDA grant program?
You will not get the NYDA funding if:
- You need Partial funding, co-funding, or funding towards a deposit for a loan from another lending establishment;
- an application is made by current NYDA staff members, Board Committee Members or Members of the Accounting Authority;
- Pyramid Sales Schemes.
- Fall within the gambling, gaming with a chance at making money, pyramid sales scheme, loan shark or sex industries (prostitution), and/or operates illegal activities.
- Businesses or shareholders of businesses that are still owing the NYDA through loan funding.
- The Businesses or shareholders of businesses that received NYDA SME loan funding.
- Businesses or shareholders of businesses that had their loans written off by NYDA.
- Businesses that have an annual turnover exceeding R750,000.00 except for cooperatives whose annual turnover must not exceed R1000,000.00
- Funding is for Second-hand equipment, except for industrial equipment with a minimum balance lifespan of five years;
- Tobacco as a primary income generator;
- Alcohol as a primary income generator;
- Are investment trusts or venture capital / private equity funds;
- Require finance to substitute an existing financier;
What you can use the NYDA grant for
The NYDA grant comes with special utilization on the fund. Funds are only disbursed to fund the following:
- Bridging finance,
- Shop renovations,
- Working capital paid directly to the grantee,
- Co funding with legal entities only, and/or
- Purchasing of movable and immovable assets
Money from NYDA doesn’t come directly to the applicant but is used to fund the above-mentioned activities.
Conclusion
NYDA grant can be your motivation to start a business that you truly desire to have. The grant also offers a learning experience that will sharpen you to become an entrepreneur to be reckoned with. As a young South African, this is an opportunity that you can take advantage of to see how far it will take you in life.
