dsbd.gov.za Co-operative Incentive Scheme : Department of Small Business Development.

DSBD Co-operative Incentive Scheme

** The Co-operative Incentive Scheme (CIS) is a 100% grant for registered primary co-operatives (a primary co-operative consists of five or more members).

Related / Similar Scheme : DTI Employment Creation Fund

** The objective of the CIS is to improve the viability and competitiveness of co-operative enterprises by lowering their cost of doing business through an incentive that supports Broad-Based Black Economic Empowerment.

Objectives

** Promote co-operatives through the provision of a matching grant;
** Improve the viability and competitiveness of co-operative enterprises by lowering the cost of doing business;
** Assist co-operatives to acquire their start up requirements;
** Build an initial asset base for emerging co-operatives to enable them to leverage other support; and
** Provide an incentive that supports broad-based black economic empowerment.

Eligible Activities Through The Grant

** Business development services (e.g. feasibility studies; business, manufacturing and production systems; and production efficiency and improvement, etc);
** Technological improvements;
** Machinery, equipment and tools;
** Commercial vehicles;
** Infrastructure linked to the project (e.g. 3-phase electricity; boreholes, etc.); and
** Working capital.

Who Benefits / Eligible Criteria

Eligible entities should :
** be incorporated and registered in South Africa in terms of the Co-operatives Act of 2005;
** be emerging co-operatives with a majority black ownership;
** have projects in any of the different economic sectors;
** adhere to co-operative principles;
** be owned by historically disadvantaged individuals (HDIs); and
** be biased towards women, youth and people with disabilities.

CIS Application Checklist

1 Completed & signed Application Form
2 SARS Tax Clearance Certificate- Original & Valid
3 Detailed business plan
4 Co-operative resolution to apply for CIS grant
5 Three competing and comparable quotations
6 Copy of Co-operative Constitution signed by founder members
7 Directors’ copies of CV’s and certified copies of IDs
8 Copy of Co-operative registration certificate
9 Motivation letter for choosing higher quotation(s)
10 Motivation letter for submitting one quotation
11 Bank Statement for start-up (confirmation letter from the Bank) Bank Statement for expansion (3 months statement)
12 Projected Financial Statement for (Start-ups) Financial Statement for Expansions (Existing)

Application Form

This will be a duly signed (by authorised person as per the constitution of the co-operative), formal submission by the applying co-operative to indicate the intention to participate in the CIS. The online application form is available on the Department: Small Business Development

Proof of registration :
Applicants must provide proof of registration in the form of a certificate of registration, indicating the name of the co-operative, its registration number, information about the registered office and the names of directors.

Proof of decision to apply for funding :
The applying co-operative must be able to provide a resolution for it to apply for the CIS. This could be by way of attaching the minutes of meetings of the Co-operative Board or sessions during which during which the decision to apply for the grant was taken.