ABSA South Africa Future Trust (SAFT)
ABSA South Africa Future Trust (SAFT) – Find out all the facts about the ABSA South Africa Future Trust (SAFT).
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What is ABSA South Africa Future Trust (SAFT)?
- The South African Future Trust (SAFT) has been set up by Nicky and Jonathan Oppenheimer to provide direct financial relief of R1 billion to employees of qualifying SMMEs in South Africa against possible income loss as a result of the COVID-19 pandemic.
How does ABSA South Africa Future Trust (SAFT) work?
- An interest-free loan will be granted to qualifying SMMEs, exclusively for the purpose of making weekly payments over 15 weeks of a specified amount of money to their permanent employees who are at risk of losing their jobs or suffering loss of income due to COVID-19.
How does SAFT operate?
- SAFT has its own board of trustees including representatives from the Government and the private sector.
Do I qualify for ABSA South Africa Future Trust (SAFT) loan?
Any SMME that meets the qualification requirements and banks with either Absa, Nedbank, Standard Bank or FirstRand Bank can apply. SMMEs must apply at the bank where their main transactional account is held.
To qualify for a SAFT loan your business needs to:
- Be able to prove the current or future impact of COVID-19 on your operations;
- Have been trading for 24 months or more
- Be in good standing with the bank
- Have an annual turnover of less than R25 million
- Includes sole proprietors, partnerships, operating trusts, CCs and Pty Ltd
My business does not bank with Absa, Nedbank, Standard Bank or FirstRand Bank?
SAFT is working to make the SAFT loans available to as many SMMEs as possible and is engaging with other financial institutions. Go to the SAFT website for more information and updates,
Which of my employees qualify for SAFT repayments?
- Full-time employees are eligible – contractors will not qualify
- Employees at risk of losing their jobs or income as a result of COVID-19
- Business owners, Trustees, shareholders or their family members do not qualify
How much will my employees receive?
A standard amount of R750 per week per employee for 15 weeks will apply. SAFT will be monitoring the current COVID-19 situation and may adjust the 15-week period.
Do my employees need a bank account to receive their payments?
- It is preferable that payments are made into the employee’s bank accounts. Should employees not have a bank account Absa will endeavour to make alternate arrangements, for example, make payments via CashSend.
Will my employees have to pay back any monies?
- The employer enters into a loan agreement with SAFT in respect of amounts paid to the employees and employees will carry no financial liability as a result of these payments.
As an employer, when will I have to pay back my SAFT loan?
- Your loan must be paid in full on or before 31 December 2025 – the loans are interest-free and carry no early-repayment fees. Loans can be paid as a lump sum or in instalments over 5 years at the discretion of the business. Loans paid after this date may be charged interest.
What if I cannot pay back my ABSA South Africa Future Trust (SAFT) loan?
- You will sign a new loan agreement that will be cognizant of your default status.
How quickly can I get my loan?
Loans approved before the close of business every Wednesday of the week will receive their first payment on Friday thereafter. Payments will be made weekly on a Friday.
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