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BBSDP
(Black Business Suppliers Development Program)
BBSDP is a grant offered by the Department of Small Business Development…
• The BBSDP is a cost-sharing grant offered to black-owned small
enterprises, to assist them in improving their competitiveness and
sustainability, in order to become integrated into the main
economy.
• It provides grants to a maximum of R800 000 for tools, machinery
and equipment, and R200 000 for business development and
training interventions per eligible enterprise, to improve the
business’s corporate governance, management, marketing,
productivity and use of modern technology.
Letlotlo Ranyathole and Associates
1

Eligible Enterprises
To be eligible, enterprises should satisfy the following criteria:
 50+1% black majority shareholding (Foreign Nationals must have been
naturalized prior 27 April 1994 to considered as PDIs`)
 R250,000 to R35 million turnover per year
 1 year in operation & trading as a business
 50% management positions held by blacks
 VAT registered compulsory only for companies with annual turnover
+R1million.
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Continues…
Qualifying enterprises are eligible to receive a maximum of up to
R1m grant.
 Enterprises will receive grant value of 30% for the current
turnover
 Cost Structure is as follows:
 Max R800 000 being ring fenced for tools, equipment and
machinery) – 50 : 50 % cost sharing.
 Max R200 000 being ring fenced for business development
services and training – 80: 20 % cost sharing.
3

Eligible Expenditure
 For Enterprise Support Services (ESS) interventions, the BBSDP will
offer a cost-sharing grant of 80% of the approved costs of qualifying
interventions, and approved enterprises will contribute 20% of the
necessary costs (for business development services and training).
 The maximum grant will be R200 000
 With regard to tools, machinery and equipment, the BBSDP will
offer a cost sharing grant of 50% of the approved costs of qualifying
equipment, an approved enterprises will contribute 50% of the
necessary costs.
 The maximum grant will be R800 000
4

Calculation and Payment of Incentive Benefit
 Is calculated on a 80:20 ratio for ESS (business development and training
support services)
 BBSDP will cost share on a 50:50 ratio of the cost of the equipment or R800
000, whichever is the lesser
Where a client qualifies for R1 000 000, the amount can be divided as follows:
Department will pay
R200 000 x 80% = R160 000 (ESS)
R800 000 x 50% = R400 000 (Tools, machinery and equipment)
Client will pay
R200 000 x 20% = R40 000 (ESS)
R800 000 x 50% = R400 000 (Tools, machinery and equipment)
5

Examples of Enterprises Support Services
 Specialised Software
 Business process reengineering
 Management Information Systems Quality Assurance (ISO,
certifications, accreditations, health and safety policies)
 Patenting & intellectual property rights
 Production & Productivity Improvements
 Product Improvements and product testing
6

Continues…
Interventions that qualify are those aimed at improving the effectiveness of the
management systems of an enterprise…
 Company diagnostics;
 Business Plan to raise finance
 Management information systems (including production, sales, accounting
software);
 Quality management systems and assurance (e.g. International Organisation for
Standardisation (ISO), certification, accreditation, grading costs);
 Patenting and intellectual property rights;
 Production and productivity improvements;
 Product improvements;
 BEE rating and certification; and
 Merger (majority shareholding) and acquisitions
7

Application Procedure
Documents required for the submission of applications to DSBD:
 Proof of ownership of the enterprise (CIPC eg. Ck1, CM9 etc.);
 ID Copies of owners and employees
 Signed financial statements or management accounts
 A completed application form;
 PSC report (to be conducted pro-bono by network facilitators);
 Company diagnostic report; (to be conducted pro bono by network facilitators);
 At least three (3) quotations
 A valid tax clearance certificate
 Support letters/orders/contracts for goods and services to be supplied
 With regard to tools, equipment and machinery, financial capacity of enterprise to fund the
project or
 Letter of intend from a 3rd party.
8

Monitoring and Reporting
 All approved interventions will be monitored to assess
how the BBSDP is contributing to the stated development
outcomes.
 The BBSDP Secretariat will undertake post-approval site
visits for progress reports (on a bi-annual basis). An
Intervention Monitoring Report will be completed as part
of this process.
9

Thank You…
Contact Details:
Kenneth Ngake
Cell: 078 052 2067
Office: 081 365 9792
info@LRANDASSOCIATES.co.za
admin@LRANDASSOCIATES.co.za
Office Address:
Harmony Business Development Centre
Farm Mealie Building
No. 49 Alma Road
Welkom
10

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LRA BBSDP Presentation Final

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LRA BBSDP Presentation Final