The Federal Government said it will soon commence the loan disbursement process for micro, small and medium enterprises (MSME) and manufacturing sectors under the Presidential N200 billion Intervention Fund scheme.
Announcing the disbursement of the funds, Minister of Industry, Trade and Investment, Doris Uzoka-Anite noted that the decision was taken following the success of the ongoing disbursements targeted at supporting one million nano businesses across the country.
According to her, N75 billion each has been allocated to support MSMEs and the manufacturing sector under the Presidential Intervention Fund. This is in addition to the N50 billion set aside to support the nano businesses.
Uzoka-Anite stated: “The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential N200 Billion Intervention Fund.
“With applications for the Presidential Conditional Grant Scheme now closed, we are excited to move forward with the loan disbursement process for the MSME and manufacturing sectors, aimed at boosting economic growth and industrial development.
“This fund is strategically divided, dedicating N75 billion to MSMEs and another N75 billion to the manufacturing sector.
“We are pleased to report that the initial disbursement to nano businesses has been met with success, and we are well on our way to supporting one million nano businesses throughout the country.
“Thousands of beneficiaries have already confirmed receipt with many more to come.
“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng.
“Additionally, applicants seeking more detailed information should visit their local state Bank of Industry (boI) branch”.
She further explained that loan eligibility for MSME loans up to N1 million includes, “The business must be an existing business in operation for at least one year, or a registered start-up, Provide CAC business registration documents, present the Company’s Bank Statement for existing businesses or the Chief Promoter’s Bank Statement for start-ups, fulfil required monthly turnover and comply with other requirements as specified by the bank”.
Others are, “Provide a personal guarantee of the promoter, agree to BVN Covenant, adhere to Global Standing Instruction and other securities as required by the bank”.
For Manufacturers, the applicant eligible for loans of up to N1 billion will choose between working capital or asset financing.
“The business must maintain at least a 6-month business/corporate banking relationship, and provide additional documentation as required by the bank. Asset Financing comes with a 5-year repayment period, and Working Capital Financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan”, She added.
