Independent restaurants, which are members of FEDHASA, have been given another shot in the arm with a recent partnership between the hospitality association and The Sukuma Fund, in which just over R100m (€5.9m) has been secured to provide immediate cashflow and rental relief.
To qualify, independent restaurants must be FEDHASA members, be formally registered and regulatory compliant, and provide evidence of financial solvency and future viability, among other criteria.
Structured over 60 months, the unsecured interest-bearing loans of between R250 000 (€14 650) and R1m (€58 616), will incur no interest or repayment obligations for the first 12 months. Thereafter, interest will be raised at the prime rate with repayments set to commence from month 13.
“Administered by Business Partners Limited in collaboration with FEDHASA, this financial aid through The Sukuma Fund, is the oxygen many independent restaurant owners need to extend their runway, keep their doors open and retain jobs,” said Rosemary Anderson, FEDHASA National Chairperson.
“We are incredibly grateful to The Sukuma Fund for responding to this great need and for extending favourable terms to our qualifying FEDHASA members.”
The Sukuma Fund was formed to distribute the R1bn (€58.62m) donated by the Rupert Family and Remgro Limited, long-time supporters of the small-business sector, in response to the economic crisis caused by the pandemic. To date, 1 303 SMEs and 2 614 formal sole proprietors have received survival grants and/or soft loans from The Sukuma Fund, saving over 32 000 jobs in the process.
“The collaboration with FEDHASA provides an ideal opportunity to help sustain many independent restaurant businesses that have been under pressure, and continue in the quest to preserve much-needed jobs in the industry,” said David Morobe, spokesperson for The Sukuma Fund.
Qualifying businesses must have obtained at least 25% reduction in rental for a minimum period of six months and furnish proof thereof, along with other documentation, such as management accounts, bank statements, company documents, etc.
“Businesses that meet the criteria and become FEDHASA members can still apply for The Sukuma Fund Rental Relief,” said Anderson.
A recent Researchgate.net study has shown that restaurants are an important factor in the choice of a holiday destination for some tourists. The study further found that the restaurants at a destination can enhance the guests’ overall satisfaction with the destination.
