Apply for N1.2 million – N5 million Agric Loan and Processing Loan from BOA and SMEDAN for businesses in FCT, Kaduna and Oyo states.

BANK OF AGRICULTURE LTD. (BOA) / SMALL AND MEDIUM

ENTERPRISES DEVELOPMENT AGENCY OF NIGERIA (SMEDAN)

MATCHING FUND PROGRAMME FOR MICRO

AND SMALL ENTERPRISES (MSEs)

INTRODUCTION

As a concept, pioneered in Nigeria by Development Finance

Institutions (DFIs), fund matching has proved popular and

successful in making micro and small enterprises (MSEs)

attractive to access finance. The strategy requires the fund

matching partner (often a DFI and an MSMEs-promoting

institution/Government) to share the risks of making funds

available to target MSEs – usually at concessionary rates over the

medium-term.

Consequently, desirous of building synergy on this very important

aspect of their respective mandate Bank of Agriculture Ltd (BOA)

and SMEDAN hereby announces the commencement of the

BOA/SMEDAN MATCHING FUND PROGRAMME FOR

MICRO AND SMALL ENTERPRISES. This intervention is to

deliver credit, to the sub-sector, as a promotional mechanism to

enhance enterprises output, competitiveness and jobs creation.

The disbursing entity, under the programme shall be the Bank of

Agriculture Ltd (BOA).

 

2. PROGRAMME TERMS AND CONDITIONS

The here-under definitions, terms and conditions shall apply under the Programme,

viz:

1. Target Beneficiaries Definition: Target beneficiaries for this Programme

shall be labour-intensive, micro or small enterprises (SMEs), operating in the

real sector. These shall ideally be innovative value-added products that are

establishing footprint in the Nigeria market, and requires additional funds to

increase output. Qualified enterprises shall also be utilizing local raw

materials (at least 65%); are regulatory-compliant and as a result of the

facility obtained. Finally, in line with current emphasis of the Federal

Government, enterprises within the agricultural value chains shall receive

topmost priority.

 

1. Loans available under the programme: Prospective beneficiaries may

apply for loans within the range of 1.2 million – 5 million, with enterprises

modernization and/or expansion as the focus.

 

iii. Conditions/Terms applicable: The interest rate chargeable on all loans

under the programme, is currently fixed at 9% per annum. The Loan tenor is

for a maximum period of 30 months, effective from the date of first

disbursement. This is inclusive of moratorium (which may vary between 2-6

months depending on the type of enterprise). Beneficiaries must complete a

loan application form in hard copy or online, sign all necessary documents

with BOA, and shall also bear cost of all approved charges (appraisal fee,

stamp duty etc.) All approved charged shall not exceed 0.5% of the facility

amount and are expected to be paid up-front. Finally, mandatory insurance

cover by NAIC applies to all beneficiaries under this programme. Insurance

premium shall be paid annually, by beneficiaries, over the project life.

1. Applicable Security: To improve accessibility to the target beneficiaries,

this facility does not require provision of collateral security. This is in

line with global best practices for delivering development financing to MSEs.

Nevertheless, all prospective beneficiaries shall:

1. Provide Bank Verification Number (BVN)
2. Execute Global Standing Instruction (GSI), giving right to the Bank

to activate the Global Standing Instruction and debit the loan in the

event of repayment default.

1. Procure NIRSAL Credit Guaranty Cover
2. SMEDAN Identification Number: All applicants for this facility are

expected to have registered and received a SMEDAN unique Identification

Number (SUIN) from the link smedanregister.ng on our website

(www.smedan.gov.ng). Please note that registration is still ongoing and as

such interested MSEs are welcome to register as part of this process.

Registration is free.

MATCHING FUND PROGRAMME FOR MICRO

AND SMALL ENTERPRISES (MSEs)

3. PROGRAMME IMPLEMENTATION MODALITIES

To facilitate inclusiveness and transparency, under the programme, the hereunder

are the approved, step-wise, implementation modalities for all applicants.

1. Portal Opening: This shall be done via a public notice placed in

selected national dallies to invite all suitably qualified MSEs to apply via

link smedan.simplifiedcredict.net on the SMEDAN website

(www.smedan.gov.ng). Once migrated to the Simplified Credit

portal, pre-qualification of application shall commence.

1. Pre-qualification of Application: This takes the form of soliciting

binary (i.e. Yes/No) responses to a number of fields to confirm the

applicant’s suitability for the facility. Disqualified applicant cannot

proceed beyond this stage.

iii. Business Plans Submission: To continue pre-qualified applicants

shall be required to pay a processing fee of ten thousand (N10,000.00)

naira for the Business Plan template on the platform (Note that a

separate training fee is not required). Also, note that a number of

Business Plan slot shall be allocated to each participating state/FCT.

Consequently, entries for such state shall cease when the required

number is met

1. Business Plans Evaluation: it shall be the responsibility of SMEDAN,

using approved in-house criteria, to shortlist business plans for field

validation. Such criteria shall include the following, bankability of

business plans; equitable distribution of prospective beneficiaries;

gender balance.

1. Field Validation Visits/Referral to BOA: Field visits shall be carried

out to all shortlisted MSEs, from the preceding stage. Validation MSEs

form this process shall be referred to BOA.

1. Due Process/Confirmation of Final Beneficiaries: This shall be

based on BOA lending policy/agreed criteria for this programme. BOA

shall thereafter inform all successful applicants, with guidance on next

steps.

vii. Refresher Training of Selected Beneficiaries: All selected

beneficiaries shall receive refresher entrepreneurship training, at no fee,

by SMEDAN, as a condition to draw-down.

viii. Opening of Bank Accounts: All successful applicants shall open (and

operate) account with the BOA branch nearest to their project location.

The required 10% lien deposit shall thereafter be paid into their

accounts by SMEDAN, prior to draw-down.

1. Loan Disbursement/On-field Recovery and Advisory Services:

Loans disbursement shall be by BOA, who shall also commence loans

recovery at the end of the advised moratorium period. SMEDAN, on its

part, shall carry out quarterly advisory visit to beneficiaries, during this

period.

CALL FOR PARTICIPATION:

The joint programme partners – Bank of Agriculture Ltd (BOA)

and Small and Medium Enterprises Development Agency of

Nigeria (SMEDAN) – hereby invites applications from all suitably qualified

micro and small enterprises (MSEs) located in FCT,

Kaduna and Oyo states. It should be clearly understood that

programme particulars set out in paragraphs 1 – 3, above, form

the basis for consideration of loan requests under this

programme. Consequently, applications from qualified micro and

small enterprises, shall be received over a period of six (6) weeks

or when the allocated quota of business plans per participating

state/FCT is exhausted (whichever comes first). Portal

Opening Date is Tuesday, 15th December, 2020. All suitably

q u a l i f i e d M S E s a r e t o a p p l y v i a l i n k

smedan.simplifiedcredit.net   on the SMEDAN website

(www.smedan.gov.ng ). Once migrated to the Simplified

Credit portal, pre-qualification of applicants shall commence.

Managing Director/CEO

Bank of Agriculture Ltd (BOA)

1, Yakubu Gowon Way

P.M.B 2155

info@boanig.com

www.boanig.com

Director General/CEO

Small and Medium Enterprises Development

Agency of Nigeria (SMEDAN)

No 35 Port-harcourt Crescent,

Off Gimbiya Street, Area 11, Garki, Abuja

info@smedan.gov.ng

www.smedan.gov.ng

BANK OF AGRICULTURE LTD. (BOA) / SMALL AND MEDIUM

ENTERPRISES DEVELOPMENT AGENCY OF NIGERIA (SMEDAN)

 

Source

FULL PG B&W ADVERT (SMEDAN) LATEST

 

The questions to answer

BOA-SMEDAN Matching Fund Program

Bio Data

Please enter your first name. Please enter your last name. Please enter your email address.

Basic Information

1) Does your enterprise currently employ ≤50 employees?

Yes No

2) Is your enterprise operating within FCT, Oyo or Kaduna State?

Yes No

3) Is your enterprise operating within the Food-processing or Agro-processing industry?

Yes No

4) Has your enterprise been in operation since 2018?

Yes No

5) Is your enterprise wholly Nigerian owned?

Yes No

6) Can your enterprise employ at least 2 people from the loan requested?

Yes No

7) Does your enterprise or major promoter(s) have any credit history?

Yes No

Regulatory Compliance

1) Does your enterprise have a SMEDAN Unique Identification Number? (Please note that registrations are still on-going and you may register to receive your ID Number)

Yes No

2) Does the enterprise have a CAC registration number?

Yes No

3) Does the enterprise have a Tax Identification Number (TIN)?

Yes No

4) Does the enterprise have a NAFDAC registration number for its products? (for packaged food products only)

Yes No

5) Is/are there any audited financial statements?

Yes No

Product Demand/Marketing

1) Does the enterprise have a marketing plan?

Yes No

2) Does your enterprise source at least 65% of its raw materials locally?

Yes No

3) Have you had up to 35% of your products stock unsold in the last two years?

Yes No

Source: https://www.simplifiedcredit.net/matching-fund/screening