“Apply Now”: SMEDAN Begins Disbursement of N5bn to Small Businesses, Sets Criteria to Qualify

“Apply Now”: SMEDAN Begins Disbursement of N5bn to Small Businesses, Sets Criteria to Qualify

  • The Small Medium Enterprises Development Agency of Nigeria (SMEDAN) said it is now disbursing an N5 billion loan to small business owners
  • The agency said the single-digit loan is in partnership with Sterling Bank for small business owners to grow their businesses
  • SMEDAN revealed that the hurdles surrounding access to the loan have been cleared and that small business owners can now apply

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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Smal Medium Enterprises Development Agency of Nigeria (SMEDAN) says small and medium-sized enterprises (SMEs) have begun accessing the N5 billion low-interest rate loan secured from Sterling Bank.

The agency said some SMEs are finding it challenging to meet the bank’s criteria and is offering support to help overcome the hurdles.

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SMEDAN begins disbursement of loans
SMEDAN announces disbursement of N5 billion loan to small businesses Credit: Bloomberg / Contributor
Source: Getty Images

SMEDAN removes hurdles to funding

The director-general of SMEDAN, Charles Odii, met Sterling Bank’s managing director, Abubakar Suleiman, on Tuesday, May 14, 2024, to address the issues.

He disclosed on X that the bank blamed the challenges on issues with formalization and other factors affecting eligibility.

According to Odii, he met with the bank’s MD/CEO to discuss the SMEDAN-Sterling loan programme, offering N5 billion to small businesses at a single-digit interest rate to increase access to funding.

He said:

“While disbursements have been made and are ongoing, I raised concerns we received about the application process and difficulties some have faced in reaching the disbursement stage. 
“The bank explained issues with formalization and other factors that prevented some businesses from meeting their eligibility criteria.
“We agreed on an action plan to address this, including continuous updates to the digital platform for a seamless experience, support for applicants who failed the eligibility test to address the responsible factors, and providing clear answers to applicants’ questions online or at bank branches.

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TheCable reports that the agency will contact successful applicants to monitor their progress and offer tailored support to ensure the opportunity to leverage the benefits of the loan.

The agency signed an agreement with Sterling Bank to provide small businesses with a nationwide N5 billion loan facility.

FG to give N10m grant to NYSC members

The development comes amid another report that the Nigerian government is planning an N10 million grant to 5,000 National Youth Service Corps (NYSC) entrepreneurial members.

President Bola Ahmed Tinubu-led federal government has announced plans to empower at least 5,000 National Youth Service Corps (NYSC) members with N10 million each. 

The empowerment programme funds the corps members' entrepreneurial ventures after completing the NYSC scheme. 

The minister of Youth Development, Dr Jamila Ibrahim, made this known during the opening ceremony of the inaugural meeting of the NYSC management with heads of Corps Producing Institutions (CPI) in Nigeria, held on Monday in Abuja

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FG begins sharing N200bn to small business owners

Legit.ng earlier reported that the Nigerian government will soon begin the loan disbursement procedure for micro, small, and medium enterprises (MSMEs) under the N200 billion Presidential Intervention Fund initiative.

President Bola Tinubu launched the initiative on October 17, 2023, to ease the removal of the petrol subsidy and other economic effects on Nigerians.

The minister of Industry, Trade and Investment, Doris Uzoka-Anite, said on Monday, April 22, 2024, that the decision was taken following the success of the ongoing disbursements targeted at supporting one million nano-businesses nationwide.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

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