Small Enterprise Development Finance Agency (SEDFA) / DSBD
OpenSmall Business Guarantee Facility (SBGF / Khula)
Always verify eligibility and deadlines on the official source before applying.
Funding amount
R50 000 to R5 million (guaranteed portion)
Government-backed credit guarantee that enables SMMEs to access commercial bank loans they would otherwise not qualify for due to insufficient collateral. SEDFA guarantees a portion of the loan, reducing the bank's risk. Available through participating commercial banks including ABSA, Standard Bank, Nedbank, and FNB.
Who qualifies
South African registered SMME or co-operative. Must apply through a participating commercial bank — the bank then lodges the guarantee application with SEDFA. Businesses with viable cash flow but insufficient collateral are the primary target. Priority for black-owned, women-owned, youth, rural, and township businesses.
What to prepare
Have these ready before you apply.
- CIPC registration certificate
- SARS tax compliance certificate
- Business plan with financial projections
- Bank statements (3–6 months)
- ID documents of all directors
- B-BBEE affidavit or certificate
- Existing bank relationship documentation
Always verify eligibility and deadlines on the official source before applying.