The Nigerian government recently unveiled a groundbreaking initiative, the Presidential Intervention Fund. This program has earmarked a substantial sum of N200 billion to foster the growth and development of small businesses across the country.
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FG N200 Billion Grant August 2024
Eligibility
The opportunity to apply for this program is open to all small businesses operating within the borders of Nigeria. The businesses that are eligible fall into two distinct categories:
- Existing businesses: These are businesses that have been in operation for a minimum of one year.
- Registered startups: These are newly established businesses that have undergone official registration.
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What Are the Prerequisites?
To be considered for this program, businesses must meet the following prerequisites:
- Proof of Business: Applicants are required to provide legal documents that confirm the existence and legality of their business. These documents are called CAC (Corporate Affairs Commission) documents in Nigeria. They include the Certificate of Incorporation, particulars of the company directors, and the company’s articles of association. These documents prove that the business is recognized by law and operates within the legal framework.
- Bank Statements: Businesses that are already operational must provide their company bank statements. These statements should reflect the business’s financial transactions over a certain period, typically the last six months. This helps the bank assess the business’s financial health and cash flow. For startups, the bank statements of the chief promoter or the main person in charge will suffice. This gives the bank an idea of the financial capacity of the person running the startup.
- Satisfactory Business Performance: Businesses are required to meet a minimum monthly income threshold. The bank determines this specific amount, which varies depending on the type and size of the business. This requirement ensures that the business generates enough revenue to sustain its operations and repay the loan.
- Guarantees and Agreements: Applicants may be required to provide a personal guarantee for the loan. If the business fails to repay the loan, the individual who provided the guarantee will be held responsible for repayment. Additionally, applicants must agree to abide by certain rules and regulations set forth by the bank. These could include maintaining a certain balance in the account, meeting specific operational standards, or providing regular financial reports. These agreements help protect the bank’s interests and ensure the business is committed to responsible financial management.
Which Businesses Can Benefit?
A diverse array of small businesses stand to benefit from this program. Here are some examples:
- Retail Outlets: This category includes a variety of small-scale retail businesses. Small stores refer to businesses that operate in a confined space and offer a range of products to consumers. Corner shops are typically small convenience stores located in a residential area. Petty traders are small-scale vendors who sell goods in small quantities. Market sellers are vendors who operate in a marketplace, selling various goods ranging from food items to clothing.
- Food Vendors: This category includes individuals who sell food and vegetables. They could be street food vendors, stall owners in a food court, or even vendors in a farmers’ market selling fresh produce.
- Tech Businesses: This category encompasses businesses that offer technology-related services. Business centre operators provide services like photocopying, printing, internet access, and computer rentals. Phone chargers and recharge card sellers deal with the sale of mobile phone accessories and prepaid credit for mobile networks. Call centre agents work in a company that handles incoming and outgoing customer calls.
- Transportation Services: This category includes individuals who offer transportation services. Wheelbarrow pushers offer manual transportation services, often in markets or construction sites. Independent delivery riders offer delivery services, often for food or courier companies.
- Creative Industries: This category includes individuals who offer creative services. Makeup artists provide beauty services for events, fashion shows, or personal needs. Fashion designers design and create clothing and accessories. Dry cleaners offer professional cleaning services for clothes and other textiles.
- Service Providers: This category includes individuals who offer various services. Vulcanizers repair vehicle tires. Shoemakers design, repair, and sometimes manufacture shoes. Painters paint buildings, houses, and other structures. Repair shops offer repair services for various items, including electronics, furniture, and vehicles.
Application Process
There are two methods to apply for the grant:
- Online: Applications can be submitted electronically via the official website: www.fedgrantandloan.gov.ng
- Bank branch: Applicants can visit their local Bank of Industry branch for more information and assistance with their application.
The Government is Here to Support!
The Nigerian government is deeply committed to supporting small businesses. This N200 billion fund represents a golden opportunity for businesses to secure the necessary funds to expand and grow. Don’t let this opportunity pass you by – take your business to new heights today!
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