35 Things to Consider when Writing GEM Business plan and Preparing for GEM Interview in Nigeria
About GEM Federal Government Grant in Nigeria
The grant amount ranges from $10,000 to $40,000 to be converted at the prevailing official exchange rate. To be eligible, your firm must be operating in Nigeria and have not more than fifty (50) full time employees. Your business should also fall within the GEM sectors of ICT, Construction, Entertainment, Hospitality and Light Manufacturing
Note: Not everyone will get the Grant!! So here’s what you need to do.
What you have to do…
The following process applies for a successful application for grant:
- 1. A competitive business plan submitted online alongside a work plan and financial spreadsheet. The link, username and password will be sent to you with a timeframe for submission.
- 2. Evaluation of business plans by the GEM project using criteria such as business aspiration, market viability, technical viability and financial viability
- 3. Selection of winning business plans
- 4. Short interview session
- 5. Document validation
- 6. Milestone setting
- 7. Grant signing ceremony
What you need to know…
By the time of grant signing:
- The firm must be registered with the Corporate Affairs Commission (CAC)
- The product/service line described in the business plan must be covered in the registration details with the CAC
- The prospective grantee must have a valid government issued ID card, Bank Verification Number and be the majority shareholder
What is a Performance Grant?
You will be required to fill out a short business plan template and have one chance out of two to obtain a grant from the GEM project. You can use the grant to pay for goods, equipment and technical assistance to grow your business. The total amount of the GEM contribution cannot exceed USD 40,000 equivalent.
Can I apply for both Matching and Performance grants?
No, you are entitled to apply for only performance grant.
How soon will I receive the grant after being selected?
Successful MSME will receive their funds in two tranches
What triggers release of my grant?
Successful MSME will be required to submit quarterly reports and create time for their business to be monitored
Matching vs. Performance
You need to earn up to 50 points to apply for this grant – look at your Dashboard to see how many points you have accumulated. You can use it to pay upfront for technical assistance (e.g. external consultancy services and related costs but not equipment, goods, construction works or materials) and be reimbursed 50 percent of the amount you spend by the GEM project (in Naira). The total amount of the GEM contribution cannot exceed USD 70,000 equivalent. Fill the form available online for matching grant and find out if you are eligible. A few examples of what a matching grant can help pay for:
- Consulting services to obtain licenses, patents, and product certification, e.g. NAFDAC license.
- Consultants that will help with laboratory testing.
- Consultants that will develop IT solutions for your human resource, finance, or marketing needs, e.g. payroll systems, SAP/Oracle, and websites for your products.
More details and examples can be seen on the application form, which you will receive when you reach up to 50 points.
Once you reach 100 points, you will be required to fill out a short business plan template. Your business plan and application will be assessed by an external consulting firm on an anonymous basis – so please do not mention any names in your business plan. If your business plan is solid and bankable, you will have one chance out of two to obtain a grant from the GEM project. You can use the grant to pay for goods, equipment and technical assistance to grow your business (but no construction works). The total amount of the GEM contribution cannot exceed USD 40,000 equivalent.
A few examples of what a performance grant can help pay for:
- Equipment that will be used for your specific business.
- Technical assistance, as in the examples listed above for matching grants.
- Goods and/or services that you would need for your business.
More details and examples can be seen on the application form, which you will receive when you reach up to 100 points.
Key points to note:
- You can only win one of the grants.
- If you apply for a Matching Grant and your request does not meet the criteria, you can still work towards applying for a Performance Grant.
- If you apply first for a Performance Grant and do not win it, you will be allowed to request for a Matching Grant without having to gain additional points.
- You do not need to get the Matching Grant first to be eligible for the Performance Grant.
- You do not need to be incorporated with the CAC to be eligible for either grant, but you need to be incorporated with the CAC to sign your grant agreement and receive your grant.
To Apply for this Grant when it is Open Again, Click the link below
These 35 Things to Consider when Writing GEM Business plan and Preparing for GEM Interview in Nigeria is for People that have been shortlisted to submit a business plan and those that have been invited for the interview
To be Continued…