What is NYDA all about?
The National Youth Development Agency provides financial and non-financial support to young entrepreneurs so that they can grow their businesses. This is made possible through their grant program, which we shall discuss in detail.
It takes more than money for a business to succeed, and that is why the agency also offers support services like NYDA mentorship, market linkage, Business Management Training Programmes, among others. This is the official NYDA logo
Image: instagram.com, @nyda_insta
Source: Instagram
NYDA Business funding
They provide three types of funding: partial, cofounding, and financing for a loan deposit from a legal lending institution.
They do not fund in the following circumstances:
- Companies with an annual turnover of more than R750,000 and cooperatives with a yearly turnover of over R1,000,000 can not be beneficiaries of the grant.
- The National Youth Development Agency staff and board members are not eligible.
- They do not fund pyramid schemes and other illegal businesses.
- If the applicant has been convicted of fraud, they can not be approved.
- If the primary source of income is tobacco, alcohol, or gambling, they will not finance your business.
- Seed funding for research and development is not allowed unless it is for mobile application prototypes.
How much can I receive from the NYDA?
They provide funding ranging from R1,000 to R200,000.
Image: instagram.com, @nyda_insta
Source: Instagram
The grants are divided into four categories depending on the stage that the business is in.
- Threshold 1- R1,000 to R10,000. Idea generation and survivalists (startups).
- Threshold 2- R10,001 to R50,000. Startups PTY and cooperatives.
- Threshold 3- R50,001 to R100,000. Growth stage PTY and cooperatives.
- Threshold 4- R100,000 to R200,000. Expansion stage PTY and cooperatives.
For agricultural and technology-related businesses in threshold 4, their maximum grant is R250,000 because they are more capital intensive.
How can the grant money be used?
It can be used for buying assets, bridging finance, renovating a shop, or paying working capital to a grantee.
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The NYDA grants should not be used for paying bribes, buying vehicles, refinancing existing loans, or settling overdue South Africa Revenue Services liabilities.