The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has updated its selection process for beneficiaries of a N5 billion credit facility earmarked for small businesses in the country. Now, applicants are required to submit their Corporate Affairs Commission (CAC) certificate and Tax Identification Number (TIN) as mandatory documents to access the loan.
Previously, SMEDAN partnered with Sterling Bank to provide loans ranging from N250,000 to N2,500,000 at a competitive interest rate of nine percent to aid the growth of small businesses. This initiative aimed to assist over 10,000 Small and Medium Enterprises (SMEs) within a 12-month period.
The Director-General of SMEDAN, Charles Odii, emphasized the significance of this financial support in stimulating economic growth and prosperity by enhancing SMEs’ access to finance. However, to ensure transparency and prevent fraudulent applications, SMEDAN introduced a new software application for loan submissions. The app streamlines the process and reduces human interference in assessing the credibility of applicants.
Moshood Lawal, Head of Corporate Affairs at SMEDAN, explained that the submission of CAC certificate and TIN helps in verifying the authenticity of applicants and ensures that the funds are disbursed to genuine beneficiaries. He mentioned that previous applicants need to reapply using the new app, as additional questions are now included to assess the viability of their businesses.
Despite initially receiving interest from over 200,000 small-scale businesses, SMEDAN is implementing these measures to ensure that the loan reaches legitimate entrepreneurs who can effectively utilize the funds for business growth and development.
