The Central Bank of Nigeria says interested stakeholders must meet its set criteria to access its N50bn intervention loans for small and medium scale enterprises.

The CBN introduced the N50bn Targeted Credit Facility as a stimulus package to support households and Micro,Small and Medium Enterprises affected by the COVID-19 pandemic, and guidelines to access the funds.

To access, it stated that, “Eligible households or MSMEs shall submit applications directly to NIRSAL Microfinance Bank; and the application must, among others, contain BVN number, business registration (where applicable) and business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

“NMFB shall appraise and conduct due diligence applications; upon satisfactory appraisal of application, NMFB shall forward the applications to the CBN for final approval; and CBN reviews applications and gives final approval for disbursement to NMFB.”

The bank stated that eligible participants were households and existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic; and enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.

 Activities covered under the guidelines include agricultural value chain activities, hospitality (accommodation and food services), health (pharmaceuticals and medical supplies), airline service providers, manufacturing/value addition, trading, and any other income generating activities as may be prescribed by the CBN.

It stated that the eligible participating financial institution for the scheme was NIRSAL Microfinance Bank.

The CBN said the loan amount would be determined based on the activity, cashflow and industry/segment size of beneficiary, subject to a maximum of N25m for SMEs; and households could access a maximum of N3m.

It stated that working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover (where the enterprise was not up to three years in operation, 25 per cent of the previous year’s turnover would suffice).

It added that interest rate under the intervention would be five per cent per annum (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility would revert to nine per cent (all inclusive) as from 1st March 2021.

The regulator stated that working capital would be for a maximum period of one year, with no option for rollover, while term loan would have a maximum tenor of not more than three years with, at least, one year moratorium.

It stated that the collateral to be pledged by beneficiaries under the programme must be acceptable by NIRSAL MFB, but may include any one or more of others which are moveable assets duly registered on the National Collateral Registry; simple deposit of title documents, in perfectible state; and deed of debenture (for stocks), in perfectible state.

Others were irrevocable domiciliation of proceeds; two acceptable guarantors; personal guarantee of the promoter of the business; life insurance of the key-man, with NMFB noted as the first loss payee; and comprehensive insurance over the asset.

https://www.google.com/url?q=https://punchng.com/how-to-access-n50bn-covid-19-intervention-fund-cbn/&sa=U&ved=2ahUKEwiX5vqY8-joAhUIoRQKHTlbB7sQFjAAegQIBhAB&usg=AOvVaw0F98oCH_DGYgNillL36tYh

Collateral?

[img]https://media./images/bae9f9ee3bf793a0bb667d8e4ccb9883/tenor.gif[/img]

Just nonsense

SME Supports

Why can't Nigeria help it citizens even with this free cash flow?

Why is it so hard to ease the pain of the majority?

When are we going to ever get it right ?

CBN too wan cash out from this covid-19 crisis watin man no go see

Gorvenors , health minister , humanitarian minister , covid-19 committee e.t.c is already enjoying the cash out now CBN too wan join , pls petty the masses and let this thing end soon