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THE

BEECHAMBER

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NEWS

EVIDENCE TO SUPPORT AN ENTERPRISE DEVELOPMENT LOAN

The most critical element of an Enterprise Development loan is that it is a loan and not a grant disguised as one.



An organisation must record a loan in their Financial Statements to confirm its origin. The following is a non-exhaustive list of evidence necessary for a B-BBEE Rating Agency at the time of a B-BBEE Verification:


  • Signed Loan Agreement including the type of loan and the terms of repayment;

  • Proof of the valid B-BBEE status of the Beneficiary;

  • Evidence that an organisation paid the loan in full as per the agreement;

  • Presentation of the loan account, ledger or a journal that determines the outstanding amount.

  • Acknowledgement from the Beneficiary that the loan was received as per the agreement;

As the necessary evidence slightly differs between B-BBEE Rating Agencies, an organisation should confirm before their B-BBEE Verification what their evidence requirements are.


The Technical Compliance Service Desk is available to guide members in collating their Enterprise Development evidence.

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