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.