MON APRIL 22 2024-theGBJournal| The Federal Government has announced the operational launch of the MSMEs and manufacturing segment of the Presidential 200 billion Naira fund.
The Ministry of Trade, Industry and Investment released a statement to the effect today saying, ”with the applications for the Presidential Conditional Grant Scheme now closed, we are excited to move forward with the loan disbursement process for MSMEs and the manufacturing sector, aiming to boost economic growth and industrial development.”
The Ministry noted that the Fund is strategically divided, dedicating N75 billion to MSMEs and another N75 billion to the manufacturing sector.
The Ministry also reported that the initial disbursement to nano businesses has been met ”with success, and we are on our way to supporting 1 million nano businesses throughout the country,” adding that thousands of beneficiaries have already confirmed receipt with many more to come.
The loan eligibility criteria for loans up to N1 million stipulates that, it must be an existing business in operation for at least one year, or a registered start-up
-the business must provide CAC business registration documents
-Present company’s bank statement for existing businesses or Chief Promoter’s bank statement for start-ups and;
-Fulfil required monthly turnover and comply with other requirements as specified by the bank.
Recipients are also expected to
-provide a personal guarantee of the promoter
-agree to BVN covenant
-adhere to global standing instruction (GSI) and other securities as required by the bank
The repayment requirement as stipulated says monthly equal instalments with no moratorium, spanning a 3-year term.
For Manufacturers (for loans up to 1 billion):
-Choose between working capital of asset financing
-provide additional documentation as required by the bank
-maintain at least a 6-month business/corporate banking relationship
-asset financing comes with a 5-year repayment period, and working capital financing includes a 8-month moratorium on principal and interest, followed by a 12 month equal instalment repayment plan.
application details can be found here- fedgrantandloan.gov.ng
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