13 Funding Windows for Nigerian SMEs (2/2)
In the last edition, we provided a list of sources entrepreneurs and business could go to access loan or grant Finance. In this edition, we continue the list from 8 – 13.
8. Anchor Borrowers’ Programme (ABP)
It targets small holder farmers in groups/co-operatives that are engaged in the production of identified commodities across the country.
Process Flow of Programme:
- Expression of Interest Letter to CBN by the Anchor/State Government, indicating the targeted agricultural commodities, proposed number of farmers, hectares to be covered and the Participating Financing Institutions (PFIs) etc.
- Formation of the Project Management Team (PMT)
- Verification of the farmers and farm sizes by the PMT
- Confirmation of participation by the Head Offices of the PFI(s)
- Identification of reputable agricultural inputs suppliers by the PMT
- Organisation of Town Hall Meeting to agree on the economics of production per hectare, take price, signing of Agreement, and any other relevant issues.
- Signing of tripartite Agreement by the PFI, Anchor and the farmers
- Submission of loan applications from Head Offices of PFIs with the list of farmers in the prescribed format with accounts numbers, gender, farm size, BVN, Telephone numbers, cooperative name and LGA
- Registration of farmers on the National Collateral Registry (NCR).
For more information scour through this PDF file: https://www.cbn.gov.ng/Out/2017/DFD/Anchor%20Borrowers%20Programme%20Guidelines%20-DEC%20%202016.pdf
9. Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)
An initiative of the Bankers’ Committee, it is accessible by start-up businesses, for expansion or ailing companies’ revival in the agricultural Sector; the real sector, including manufacturing, mining and petrochemicals, service Sector- the information and communication technology (ICT), beauty and creative industry and other activities as the Central Bank of Nigeria (CBN) may determine. To access, you:
- Are trained and certified by any of the CBN approved Entrepreneurial Development Centres, including the Lagos Business School, House of Tara, Fate Foundation, and Thrive Agric, among others.
- Visit any branch of your bank or its contact centre to apply
- Submit a business plan upon training to your bank for approval by the CBN and then the fund is disbursed by your bank.
10. Conditional Grant Scheme
The Conditional Grant Scheme promotes the activities of micro enterprises in the areas of capacity building and delivery of post-intervention support services, such as access to finance, markets and workspace, among others.
The training affords them entrepreneurial skills backed with a minimum take-off grant of ₦50,000 to make a difference in their chosen field of business.
To be eligible, applicant must:
- Own a registered business or willing to register a business.
- Operate a business that has progressive economic potentials.
- Have at least one staff other than the owner.
- Run an enterprise.
- Have a strong desire and commitment to grow the business.
- Have a need for additional investment and have had no previous access to any financial services.
- Meet application submission deadline and other requirements such as proof of address in the LGA and personal identification.
For an enterprise, it must:
- Register the business name and products with relevant government agencies
- Be a responsible corporate citizen by payment of appropriate taxes as at when due.
- Employ a minimum of two Nigerians within a specified minimum period.
- Source its raw materials locally.
- Institute a sustainable minimum simple governance structure.
- For more: https://smedan.gov.ng/images https://smedan.gov.ng/image
11. Business, Innovation and Growth (BIG) Platform.
It supports five sectors- the Construction, Entertainment, Hospitality, Information and Communication Technology, ICT and Light Manufacturing, including Agro-processing industries.
- Create an account and register your business.
- Attend an induction workshop
- Access the various services available on the platform.
- Log on to the BIG Platform (www.bigportal.org.ng) to apply.
12. Development Bank of Nigeria (DBN)
The Development Bank of Nigeria (DBN) has taken off with an initial funding of US$1.3billion injected by the World Bank, German Development Bank, the African Development Bank and Agence Française de Development to provide medium and long-term loans to MSMEs.
To apply and access the Loans:
- You must be an MSME (start up or existing) involved in productive enterprises and a customer of an eligible financial institution.
- Visit your Participating financial institution (PFI) to Indicate interest.
- Financial institution appraises the business and loan purpose, and if favourable, applies to DBN for funding.
13.Government Enterprise and Empowerment Programme (GEEP)
GEEP is designed for Micro, Small and Medium Enterprises (MSMEs) to stimulate the bottom of the pyramid with credit.
It comprises three sub-programmes- Tradermoni, MarketMoni and FarmerMoni, under which zero collateral loans, ranging from N10, 000 to N300, 000 are given to MSME operators.
To access, an applicant must:
- Have a Bank Verification Number (BVN).
- Belong to an accredited market association or cooperative registered by the state government or Corporate Affairs Commission (CAC), which applies for loans on behalf of their members.
- Own a verifiable business location by BoI.
- Cooperatives can register for loans online via https://boi.ng/apply/, boi.ng.
But as they say, there’s no such thing as a free lunch. Before you secure any these grants, you must have paid for assistance in getting your applications upto the standards that have been requested by these organisations. Getting an accounting software majorly built for SMEs, such as BMAC, will help structure a business to easily attract loans and grants from investors.