A Guide to SEDFA Funding (Formerly SEDA)

If you are looking for SEDA, the Small Enterprise Development Agency, you will now find its services under a new name. On 1 October 2024, SEDA, the Small Enterprise Finance Agency (SEFA) and the Co-operative Banks Development Agency merged into the Small Enterprise Development and Finance Agency (SEDFA). SEDFA reports to the Department of Small Business Development. The merger put business support and funding in one place. Previously, a small business went to SEDA for training and business plans and to SEFA for loans. SEDFA now does both, so one agency can take a business from early support to finance. This guide gives an overview of what SEDFA offers. For the application steps and what changed in the merger, see SEDA funding is now SEDFA. For a closer look at the loan products, see SEDFA funding products explained.

SEDFA provides loans and finance for small businesses and co-operatives, from equipment and term loans to bridging finance, revolving credit, targeted funds for township, youth- and women-owned businesses, and lending through intermediaries such as microfinance institutions. Most of it is repayable, and some targeted programmes include a grant portion. To find the product that fits your situation, see which SEDFA loan fits your business.

The non-financial side, inherited from SEDA, helps businesses become ready for funding and grow. It includes enterprise coaching, entrepreneurship training, incubation programmes, supplier development, export development, technology transfer assistance and the Pitch for Funding programme. This support is often the right first step for businesses that are not yet ready for a loan. Our look at SEDFA’s business development support covers it in more detail.

SEDFA serves small, micro and medium enterprises and co-operatives across all sectors, with particular focus on black-owned businesses, women, youth, people with disabilities and businesses in townships and rural areas. Each product has its own criteria, but applicants generally need:

• A business registered with CIPC, or a registered co-operative
• Owners who are South African citizens actively running the business
• Tax compliance, shown with a SARS tax compliance status PIN
• A viable business case and, for loans, the ability to repay

Applications are made online through SEDFA’s eThuse portal, linked from the SEDFA website. Create a free account, choose the product or programme, and upload your documents. You can also contact SEDFA on 086 010 3703 or visit a SEDFA branch. Prepare your CIPC documents, owners’ IDs, tax compliance PIN, bank statements, financial records and a business plan before you start. Incomplete applications are the most common reason for delays.

Does SEDA still exist?

No. SEDA, SEFA and the Co-operative Banks Development Agency merged into SEDFA on 1 October 2024.

Can SEDFA help me write a business plan?

Yes. Business development support, including help preparing for funding, is part of what SEDFA offers.

Does SEDFA fund start-ups?

Some programmes support early-stage businesses, often starting with business development support. Loans usually need some trading history.

Is SEDFA funding free?

Business development support is generally offered without charge. Loans must be repaid, and some targeted programmes include a grant portion.

How do I contact SEDFA?

Through the eThuse portal on the SEDFA website, by phone on 086 010 3703, or by email at [email protected].