MSMEs N200 billion Loans – FG sets budgets for the Small Businesses Support Scheme | BasedOnNews

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Micro Small and Medium Enterprises (MSMEs) Loan of N200 Billion – The Federal Government of the Federal Republic of Nigeria has made budgets regarding to the Micro Small and Medium Enterprises (MSMEs) Loan. The full details on how the loan will be for the support scheme of MSMEs was rolled out under the National Economic Sustainability Programme (NESP).

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FG Loan Budgets for MSMEs and others

According to estimates provided, the sum of N50 billion will be used to provide payroll support, N200 billion for loans to artisans, and N10 billion support to private transport companies and workers

This update was given to us through the Federal Government Tweet which in scripts as stated below;

“The Federal Govt is rolling out, under the NESP, support schemes for MSMEs nationwide, including a Guaranteed Offtake Scheme (guaranteeing off-take of priority products); and an MSMEs Survival Fund that will make payroll support available to save jobs & sustain local production.”

Sectors that would benefit from MSME Loan

Major sectors to benefit from the SME survival fund include:

Hotels
Restaurants
Creative industries
Road transport
Tourism
Private schools and
Export-related businesses.

Note: As far as you are into one business or the other, you are eligible for the MSMEs Loan as it is for small and medium businesses. Feel free to apply.

Details for the take-off scheme for MSMEs Loan

The first track is a Guaranteed Off-take Scheme which will ensure continued local production and safeguard 100,000 existing small businesses to save 300,000 jobs. FG will as well purchase itemized products for MSMEs and pay for the products transportation.

Priority products include processed foods, personal protective equipment, hand sanitizers, face-masks, face-shield, shoe-covers and pharmaceuticals.

The implementation committee chaired by Ambassador Mariam Katagum, Minister of the Federal Ministry of Industry Trade and Investment, will collaborate with private sector MSME associations to verify and screen applications from bidding MSMEs, define quantity and price of products required, and also get participants to join in the procurements.

Some important facts to know about MSMEs Loan

Did you know that with a budget of N15 billion, the SME survival fund is expected to sustain 500,000 jobs in 50,000 SMEs.

It is through the committee that FG will identify eligible SMEs and screening and verification for this fund will be based on company registration, and tax registration. The implementation committee will approve disbursements through microfinance banks and fin-tech credit providers.

MSMEs that are unregistered will receive support to complete registration with the Corporate Affairs Commission (CAC), and all participants will be expected to make payments based on signed agreements.

The Bank of Industry will also join to coordinate the implementation of the scheme.

The scheme will last 3 months with Ambassador Mariam Katagum as Chairman, while Ibukun Awosika, Founder of The Chair Centre Limited (TCCL), and First Bank Nigeria will serve as the Vice Chairman.