Business Partners Limited

SME Youth Jobs Fund

Looking to expand your workforce but concerned about the cost?

We have introduced the SME Youth Jobs Fund, offering finance from R250 000 to R2 million to established SMEs to cover labour-related costs associated with newly created jobs for youth aged 18 to 35, including salaries and wages.

With finance typically available at Prime less 2% (subject to risk assessment and approval) and a six-month interest-only repayment period, the Fund is designed to support business growth while easing the financial burden of hiring and developing new talent.

SME Youth Jobs Fund

Finance Your Growth. Create Jobs. Empower South Africa’s Youth.

The SME Youth Jobs Fund provides affordable finance from R250 000 to R2 million to fund labour-related costs associated with newly created jobs. This enables businesses to expand their workforce while creating employment opportunities for young South Africans.

The funding covers the first 2 years of salaries and wages for newly employed youth aged 18 to 35 years, helping businesses manage hiring costs while investing in long-term business growth.

  • The SME Youth Jobs Fund has been exclusively established to assist SMEs looking to onboard new employees. Through the Fund, you can expand your workforce with reduced financial pressure
  • We offer an initial 6-month interest-only period. Thereafter, monthly capital and interest repayments for the remainder of the term
  • We are invested in seeing business owners succeed: We have spent over four decades adjusting our products and services to boost the success of the business owners we support
  • We provide more than just money: Because we understand the experiences and challenges business owners face, we take more risk than most financiers

Whether you are expanding operations, entering new markets, increasing production capacity, or scaling your workforce, the SME Youth Jobs Fund can help you create sustainable jobs while strengthening your business.

Businesses can apply for funding ranging from R250 000 to R2 million.

The Fund is open to both existing Business Partners Ltd clients and the SME community at large. To qualify, the legal entity borrowing finance (borrower) needs to meet the following requirements:

  • Be registered as a company or close corporation – trust are not financed through this Fund
  • Have only natural persons as shareholders or members
  • Have a minimum of 2 years’ trading history
  • Demonstrate that the business is financially viable and solvent at the time of application
  • Intend to use the finance to create new employment opportunities for youth aged 18 to 35 years
  • Not use the funding to employ relatives or other related parties

The SME Youth Jobs Fund does not provide funding to the following business types and sectors:

  • Non-Profit Organisations (NPOs)
  • Primary agriculture
  • Sin Industries​
  • Underground mining
  • Residential letting

Should your business fall under this category, we invite you to explore alternative Business Partners Limited financing options.

The cost of finance is determined based on the risk profile of each application and includes:

  • Interest rate of Prime -2% (variable)
  • A once-off raising fee of 1,5% of the approved funding amount
  • A monthly administration fee of R120

Finance is provided through a loan agreement and is structured to support businesses as they create new employment opportunities.

Loan Term

  • The repayment term is generally up to 60 months
  • There is an initial 6-month interest-only period
  • Thereafter, monthly capital and interest repayments for the remainder of the term

How Funds Are Disbursed

Funding is released in stages to align with employee onboarding and salary payments:

First Tranche

  • This tranche is paid once all funding conditions have been met, including signed loan documents, employment contracts, and employee identification documents
  • It covers the first six months of salary costs in advance

Second Tranche

  • This tranche is paid after six months, subject to the submission of payroll records, EMP201 returns, and proof of salary payments
  • It covers the next six months of salary costs in advance

Final Tranche

  • This tranche is paid after twelve months, subject to the submission of updated payroll records, EMP201 returns, and proof of salary payments
  • It covers the remaining approved salary costs for the funded employment period

When evaluating your application for the SME Youth Jobs Fund, we focus on three key areas:

  1. We first assess for business viability and solvency: We evaluate the cash flow viability of the borrower, identify potential risks associated with the business, and consider the overall business’s growth potential.
  2. Our next assessment is the entrepreneur capability: We evaluate the business owner/s’ technical and management skills and experience, credit worthiness, their business acumen – their ability to run a successful business on sound business principles and their personal principles such as integrity, drive and vision.
  3. And finally, we assess job creation potential: We assess the existing jobs in the borrowing entity and the comprehensive plan on how the business will create new jobs.

To ensure a smooth application process, please prepare the following documents:

Business Documents

  • Completed online application
  • Company or close corporation registration documents
  • Copy of company’s share register
  • Copy of Registration Certificate or Founding Statement
  • Confirmation of bank account details issued by the relevant bank

Director and Shareholder Documents

  • Certified copy of IDs of all directors, shareholders and members
  • Copy of marriage certificate, including ANC contract, divorce decree or death certificate, where applicable

Financial Information

  • Signed Annual Financial Statements not older than 12 months from the date of application
  • Signed Management Accounts not older than 3 months from the date of application
  • Latest rental statement for business premises, not older than 1 month
  • Statements for any other existing credit facilities including ISA, bond facilities or trade finance – all these statements must not be older than 3 months from the date of application
  • Statements of assets and liabilities for the main business owner/s