Non-repayable grants do not have to be paid back, which makes them the most attractive category of small business funding on paper. They are not free money in the way that phrase implies: most come with strict conditions on what the funds can be used for, detailed reporting requirements, and eligibility criteria that rule out businesses that do not fit the specific scheme. This is a reference directory, organised by the body that actually runs each grant, since applying to the wrong door wastes weeks. For how to actually submit an application, see our step-by-step guide to applying for a small business grant.
| Body | What it funds | Best suited to |
|---|---|---|
| dtic | Sector-specific incentive schemes: agro-processing, black industrialist development, clothing and textiles, export development | Businesses with a specific capital project in a targeted sector |
| DSBD | The Co-operatives Incentive Scheme, a matching grant for registered co-operatives | Co-operatives with at least five historically disadvantaged members |
| TIA | Pre-commercialisation support and seed funding for research-based innovation | Technology emerging from higher education institutions |
| NEF | Sector transformation funds, including tourism-focused funding requiring majority black ownership | Black-owned businesses in NEF’s target sectors |
| NYDA | Non-repayable grants and business development support for youth-owned businesses, up to R200,000 for individual applicants and more for registered co-operatives and agriculture or technology businesses | Youth-owned businesses aged 18 to 35 |
| IDC | Youth-focused business support and grant programmes to improve funding readiness | Youth entrepreneurs preparing for larger funding |
Where these grants actually come from
The Department of Trade, Industry and Competition (dtic) runs the widest range of sector-specific incentive schemes. Our guide to dtic funding for small businesses covers its current schemes in detail. The Department of Small Business Development runs the Co-operatives Incentive Scheme specifically for registered co-operatives, structured as a matching grant capped at a set maximum. The Technology Innovation Agency funds the commercialisation of research and intellectual property from South African higher education institutions. The National Empowerment Fund administers sector transformation funds, including tourism-focused funding requiring majority black ownership. The National Youth Development Agency provides non-repayable grants and non-financial support specifically for youth-owned businesses. The Industrial Development Corporation runs youth-focused support aimed at improving the readiness of an applicant before it approaches larger funders.
What every application has in common
Whatever the specific scheme, almost every grant application needs the same baseline: current CIPC registration, a valid SARS tax compliance status PIN, a B-BBEE certificate or affidavit, and a clear, costed plan for exactly what the money will be spent on. Applications that describe a specific project with supplier quotes are treated far more seriously than requests for general “working capital”.
Why programme names and amounts change so often
Funding caps, eligibility criteria and even the names of the administering bodies shift more often than most funding guides admit, most recently when SEDA and SEFA merged into SEDFA in October 2024. Treat the table above as a starting map, and confirm current details directly with the administering body before you apply.
Grants versus non-financial support: use both
Several of these bodies, particularly the dtic, DSBD and IDC, also offer non-financial support such as mentorship, market access and technical assistance alongside their grants. A business that is not yet ready for a grant can often still qualify for this support, which improves its chances the next time it applies.
Frequently asked questions
Are non-repayable grants really free money?
They do not need to be repaid, but almost all carry conditions on how the money is spent, reporting requirements and specific eligibility criteria.
Which government body should I approach first?
Whichever one runs a scheme that matches your sector, business type and stage. The table above narrows that down quickly.
Can I apply for more than one grant at once?
Yes, provided the money is for different costs. Applying twice for the same expense is usually a breach of the terms.
Why do grant names and amounts keep changing?
Government funding programmes are reviewed and restructured periodically, and agencies themselves sometimes merge, as SEDA and SEFA did in 2024.
Where do I find grants beyond these well-known bodies?
See our directory on which funding fits your business stage, which covers grants alongside every other funding category.
Originally published in September 2022. Updated September 2026.
