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

Organisation : Department of Small Business Development.
Facility : Co-operative Incentive Scheme
Website : http://www.dsbd.gov.za/?page_id=1220
CIS Guidelines : https://www.southafricain.com/uploads/9219-guidelines.pdf
CIS Application Form : https://www.southafricain.com/uploads/9219-Applications.pdf
CIS Application Checklist :  https://www.southafricain.com/uploads/9219-Checklist.pdf

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.

FAQ On DSBD Co-operative Incentive Scheme

Frequently Asked Questions FAQ On DSBD Co-operative Incentive Scheme

Q: What is the Co-operative Incentive Scheme?
A: The Co-operative Incentive Scheme is a program created by the South African Department of Small Business Development (DSBD) to provide financial support to co-operatives in South Africa. The scheme aims to promote job creation, improve productivity, and enhance the competitiveness of co-operatives in the country.

Q: Who is eligible for the DSBD Co-operative Incentive Scheme?
A: Co-operatives that are registered with the relevant authorities, have a valid tax clearance certificate, and have been in operation for at least one year are eligible to apply for the DSBD Co-operative Incentive Scheme.

Q: What kind of financial support does the DSBD Co-operative Incentive Scheme offer?
A: The DSBD Co-operative Incentive Scheme offers financial support in the form of grants to eligible co-operatives. The grants can be used for a range of activities such as purchasing equipment, acquiring stock, and covering operational costs.

Additional Simplified Procedure

Here are the steps on how to apply for the DSBD Co-operative Incentive Scheme:
1. Go to the DSBD website and click on the “Co-operative Incentive Scheme” link.
2. Click on the “Apply for the CIS” button.
3. Read the eligibility criteria carefully.
4. Download the application form and the CIS checklist.
5. Complete the application form and the CIS checklist.
6. Upload the required documents.
7. Submit the application form and the CIS checklist.

The required documents are:
** A copy of the co-operative’s registration certificate.
** A copy of the co-operative’s constitution.
** A copy of the co-operative’s audited financial statements for the previous year.
** A business plan for the co-operative.
** A letter from the co-operative’s board of directors, confirming their support for the application.

Once you have submitted your application, the DSBD will review it and process it within 30 days. If your application is approved, you will be notified by the DSBD.

Here are some additional tips for applying for the DSBD Co-operative Incentive Scheme:
** Make sure you have all of the required documents before you start the application process.
** Read the instructions carefully before you submit your application.
** Double-check all of your information before you submit your application.
** If you have any questions, contact the DSBD.

Here are some of the benefits of applying for the DSBD Co-operative Incentive Scheme:
** You could receive a grant of up to R500,000.
** You could receive technical assistance to help you develop your co-operative.
** You could be eligible for other government funding programs.