Frequently Asked Questions
Can anyone apply for funding from the Legacy Investment Fund?
No. The Legacy Fund is only available to individuals who have successfully completed the Asukume program.
Are all Asukume Programme graduates guaranteed funding from the Legacy Investment Fund?
No. Every application will be evaluated on merit.
For example, loans will only be provided where it is believed that the business will be realistically able to repay the loan.
Investments by the Legacy Fund into businesses will only be considered where it is believed that the investment has investment merit, for example that it will generate a sufficiently attractive investment return.
How will funding applications be evaluated?
Evaluating an application for entrepreneur funding requires a careful analysis of the business in its entirety.
While past financial performance will have a considerable impact, so too will the qualitative elements of the applications and presentations.
A well written business plan and motivation by the entrepreneur and supporting documents, such as letters from mentors will typically help motivate the application.
Will the Legacy Fund require me to provide any other security, such as a personal surety or offering property as security?
No. The Legacy Fund does not require any other security. The only security the Legacy Fund would require is restricted to the assets of the business.
What types of funding are available?
The Legacy fund essentially offers two types of funding.
It offers interest bearing loans to provide start-up/ term finance finance or where the entrepreneur does not wish to involve an external shareholders. Interest bearing loans are also offered in cases where the investment case does not warrant an equity investment by the fund.
The other type of funding is essentially equity/ shareholder funding. This funding essentially represents an investment by the fund in the business of the entrepreneur. This funding is typically of a long term nature and may include an equity investment, shareholder loans and/or interest bearing loans.
How much funding can I apply for?
The amount of funding depends on the type of funding required.
Interest bearing loans (where the Legacy Fund does not take an equity position) are typically limited to R 100 000, whereas equity type investments (all forms of funding to the entrepreneur) are limited to R 2 500 000 per entity.
How do I apply for funding from the Legacy Investment Fund?
Applications are restricted to those who have successfully completed the Asukume Program.
We suggest that you first check the requirements for an application and then prepare the necessary documents before applications before registering.
Once you have assembled the necessary documents, you will need to register on https://legacyfund.co.za/apply to start the application process.
The next step will then be to complete the online application forms and attache all the supporting documents.
Can I apply for funding to purchase property?
No. The Legacy Fund only provides funding for the development of businesses, for example to finance capital equipment or working capital.
What must I do if I am unable to repay my loan installment or interest in a month?
There are two things you must do. The first is to notify the fund that you will be unable to make that payment (don’t wait for us to call you) and secondly pay what you can.
How much of my company would The Legacy Fund want in return for an investment in my company?
There are no fixed rules on the percentage the fund would expect to obtain in your company. The principle though is that the equity holding must be fair relative to the value of your business. As an example, you could not expect to only offer a 10% stake when you request a R 1 mil. investment into a business that itself is valued at R 1 mi..