Will the NEF fund the following types of businesses:

a) Franchises
Yes, if all franchising requirements as supplied by the franchisor are met, our funding application process can be followed

b) Property developments
The NEF will view these transactions on the basis that, there has to be a long-term sustainability aspect to this, such as an expansion of a construction company being a good example of this as opposed to once-off or first time projects that have no long- term benefits.
c) Petrol Stations
Yes, this is viewed as a normal application to either start or expand a business, the normal application process applies. Applicants should include information as provided by the fuel company.

What is the difference between grant and loan funding?
Grant funding or portions thereof do not have to be repaid whereas loan funding is paid back with interest. Grant funding would not be provided by the NEF and would normally apply to non-profit activities.

What is the difference between debt and equity?
Equity funding is when the NEF as a financier takes a share interest in your business. The applicant would buy these shares back at a later stage. Debt funding is in the form of a loan and repaid with interest over the investment period. 

Does the NEF only fund black people ?
The NEF criteria stipulates the thresholds for each product category with a minimum requirement of at least equity holding in the case of Corporate Fund Products and increasing to 50.1% in the case of 25.1% Imbewu Fund Products. 

Does the NEF assist with finding empowerment partners for non-BEE compliant businesses
interested in the funding?
The NEF assists BEE parties with management buy-ins and/or management by-outs of white owned companies and sectors but does not find the empowerment parties for the non - BEE compliant businesses.