The Gauteng Enterprise Propeller (GEP) is a micro loan programme designed to provide loans to start-ups and existing enterprises in Gauteng. In South Africa there are an estimated 2.8 million SMMEs, thus providing a critical role as the engine of growth in the economy. Established in 2005, this business support agency aims to be the leading finance source to propel business enterprises forward for job creation.
GEP’s core functions are:
Providing financial and non-financial support; and skills development.
In order to qualify for GEP finance business owners are required to be South African citizens, based in Gauteng, have 51% black equity ownership, have skills or experience relevant to the business and have a strong commitment to sustaining and growing the business. The business should be owner-managed, the venture must be financially viable and the owner needs to show the ability to service the loan through the agreed repayment plan.
Credit provided is from a minimum of R10 000 to a maximum of R250 000 at an annual interest rate of 8%. The repayment period is 36 months and collateral must be provided. A risk assessment is done and a feasibility repayment structure is calculated prior to lending.
Business owners must apply by filling the application form in, signing it and attaching supporting documents. Forms should be submitted by mail or through GEP regional offices.
These supporting documents must include certified I.D. copies of members or directors, company registration documents, original unexpired tax clearance certificate, applicable compliance certificates, certified and audited financial statements and management accounts, 36 month cash flow projections, 3x quotations for all CAPEX requirements and a breakdown for all working capital. Additionally, loan applications lower than R50 000 should submit a business profile and those for funds in excess of this amount should have a comprehensive business plan.
An initiation fee of R2500 is charged on all applications above R24 000 and for those below this threshold, the fee is determined according to the NCR fee table.
GEP can be contacted on 011 085 2001 or via satellite offices around Gauteng.