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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:

 

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

  2. Proof of the valid B-BBEE status of the Beneficiary;

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

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

  5. 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.

 

Enterprise & Supplier Development Services  are available to assist Members with the creation & implementation of Enterprise & Supplier Development initiatives.

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