₦500,000 Federal Government loan

The Federal Government’s initiative, in partnership with the Central Bank of Nigeria (CBN), has introduced an impactful scheme known as the FG Loan which is aimed at supporting small and medium-sized enterprises (SMEs) across the nation.

2% of the wholesale component of the Fund shall go to economically active persons living with disabilities (PLWD) and 10% provided for start-up businesses.

The broad objective of the Fund is to channel low interest funds to the MSME sub-sector of the Nigerian economy through Participating Financial Institutions (PFIs)to:

· Enhance access by MSMEs to financial services;

 · Increase productivity and output of microenterprises;

 · Create jobs; and

 · Engender inclusive growth.

 

Eligible Enterprises

In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme shall include:

a) Micro Enterprises

 b) Small and Medium Enterprises (SMEs)

 

Micro enterprises

 · Agricultural value chain

 · Cottage Industries

 · Artisans

 · Services

 · Renewable energy/energy efficient product and technologies

 · Trade and general commerce

Note:

· Only 10% of the Commercial component of the Fund shall be channeled to trade and general commerce.

 · Nigerian Agricultural Insurance Corporation (NAIC) Insurance is compulsory for primary agricultural production

Small & Medium Enterprises (SMEs)

 · Manufacturing

 ·Agricultural value chain activities

 · Services

 · Renewable energy, energy efficient product and Technologies

Qualifications for the FG Loan

To be eligible for the FG Loan, businesses must meet specific criteria set forth by the government. These criteria include:

a) Registration with Corporate Affairs Commission (CAC) or Relevant Ministries, Departments and Agencies (MDAs) of States/FCT.

b) Board Resolution or Trustee consent to access the Fund

 c) Corporate, Trustee and Management profile

 d) Financial asset of the institution or the third party guarantor

 e) Twelve (12) months Statement of Account

 f) Current Audited Account or Management Account

 g) Membership of the Apex Association

Application Process for FG loan

The application process involves several critical steps, each integral to securing the financial support provided by this program. These steps include:

1. The collection of all necessary documentation, such as business plans, financial statements, tax documents, and relevant permits.
2. Submitting of the completed application through the designated channels, adhering strictly to the outlined procedures.
3. The submitted application undergoes a comprehensive review process by the relevant authorities. Successful applicants receive notification regarding the next steps.

Benefits of the FG Loan

The FG Loan presents benefits to qualified businesses, including:

• Financial Support: Access to substantial funds that can be vital for various business needs, including expansion, technology upgrades, or working capital.
• Low-Interest Rates: The loan program typically offers attractive interest rates, ensuring manageable repayment terms for borrowers.
• Capacity Building: Beyond financial aid, the program often includes capacity-building initiatives, workshops, and training sessions aimed at enhancing entrepreneurial skills.