SMEDAN Floats Single-digit Funding for Small Businesses

James Emejo in Abuja

The Director General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Olawale Fasanya, has disclosed that a matching fund programme for agro-based Nano, Micro and Small Enterprises (NMSEs) has been launched.

He said the intervention was aimed at delivering credit to the sub-sector in six selected states including Anambra, Bayelsa, Delta, Ebonyi, Ekiti, and Osun.

Fasanya explained that the initiative was in partnership with Sterling Bank Plc to boost financing for small businesses.

In a statement he added that the programme is a promotional mechanism to enhance enterprise output, competitiveness and job creation with the bank as the disbursing entity,

The SMEDAN boss also said the intervention is largely targeted at MSMEs operating in the real sector with value-added agricultural products.

He explained that prospective beneficiaries may apply for financing within the range of N500,000 and N2.5 million.

Fasanya said, “The interest rate applicable on all financing under this programme shall not exceed single digit per annum. The financing tenor is for a maximum period of 30 months effective from the date of the first disbursement.

“This is inclusive of the moratorium which may vary between three to six months depending on the type of enterprise”.

He also said applicants or enterprises wishing to apply must be within the agribusiness value chain.

He said, “The applicant/enterprise must have a Corporate Affairs Commission (CAC) registration or state-approved registration and a movable asset to be registered under the National Collateral Registry (NCR).”