Black Business Owners – Expand your Business with a Tax Free Grant under the DTI’s BBDSP Incentive Programme
BBDSP Grants for Small Black-Owned Businesses. (Black Business Supplier Development Programme).
The BBSDP (Black Business Supplier Development Programme) is a cost-sharing tax free grant offered to black-owned small enterprises, to assist them in improving their competitiveness and sustainability, in order for them to become integrated into the mainstream economy and create employment. The BBSDP offers a grant to a maximum of R1 million per eligible enterprise, to improve principles of corporate governance, management, marketing, productivity and use of modern technology.
The list includes training programmes for staff and the purchase of tools, equipment and machinery. The grant will cover 50% of the cost of purchasing machinery and 80% of the other qualifying activities.
To apply for a BBDSP grant, all you have to do is fill out the contact form below to get started. As soon as we have your information, we’ll get back to you within 24 hours to discuss how you can apply for this money.
Qualifying Interventions
BBSDP will pay a tax free grant of 80% of these Qualifying Interventions to approved black owned companies:
1. Training
2. Upgrading of Business management – Click here for a list of qualifying interventions.
3. Purchasing of tools, machinery and equipment (BBSDP will pay 50% of the cost price up to a maximum of R800 000 per entity).
Objectives of the BBSDP Tax Free Grant
To fast-track existing SMMEs that exhibit good potential for growth into the mainstream economy; To grow black-owned enterprises by fostering linkages between black-owned SMMEs, and the corporate and public sector enterprises; To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises; and To enhance the capacity of grant-recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.
Qualifying criteria for the BBSDP
Fifty-one percent (51%) black majority shareholding; R250 000 to R35 million turnover per year; One (1) year in operation and trading as a business; Fifty percent (50%) management positions held by black people (historically disadvantaged individuals); Enterprises formally registered for VAT; Eligible to obtain funding to a maximum of R1 million for the activities offered under the BBSDP (NB: R800 000 is ring-fenced for tools, equipment and machinery); and Cost-sharing ratio of 80:20 (DTI pays 80% and qualified company pays 20%) for business development services and 50:50 for tools, equipment and machinery.
NB: All applicants should note that requested amounts for each intervention may not be greater than 25% of the enterprise’s previous year’s turnover.
If you can answer “YES” to all of the following questions, then you may qualify for a grant under the BBSDP:
1. Is your shareholding more than 51% black?
2. Do you have financial statements?
3. Do you have a valid tax clearance certificate?
4. Is 50%, or more, of the management occupied by black people?
For further information regarding the BBSDP, please fill in the form below and we’ll contact you as soon as possible.
Or call one of our advisors for more information on:
Tel: +27 (012)348 5871
Fax: +27 (012)348 3287