Last Updated on September 21, 2020 by Ope Quadri
Nigeria’s government released the timetable for survival fund application for the N75 billion for Micro, Small and Medium Enterprises (MSMEs) and Guaranteed Off-take schemes. The application begins Monday, September 21, 2020
Recall that the Minister of State for Industry, Trade and Investment, Mariam Katagum, announced last week that registration would begin today.
What is Payroll Survival Fund?
The Survival Fund is part of the core of the N2.3tn stimulus package of the Federal Government also known as the Nigeria Economic Sustainability Plan which is being implemented by the Federal Government to cushion the impact of the COVID-19 pandemic on Nigeria’s economy.
According to the FG, the project, which would run for an initial period of three months, and made available for 1.7 million entities and individuals across the country.
Aim of the fund:
- To boosting the economy
- Saving existing jobs
- Creating new job opportunities.
Who can apply for N75bn Survival Fund?
The fund is for MSMEs i.e small business owners across the country and as such a special fund is designed for you and I if your business is registered
Application Timetable for Payroll Survival Fund
The payroll support timetable of the FG’s N75 billion Survival Fund for Micro, Small and Medium Enterprises (I.e small business owners) in Nigeria shows that private school owners which falls under education will be the first to register on the official portal on Monday, September 21, 2020
This will be followed by firms in the hospitality industry on Tuesday, September 25, 2020, while other businesses will begin registration from Monday, September 28, 2020.
|10:00 AM||Monday, September 21, 2020||Education (private schools)|
|12:00 AM||Friday, September 25, 2020||Hospitality (hotels etc)|
|12:00 AM||Monday, September 28, 2020||All sectors not included above (General)|
3 sectors under Payroll Support Registration
Let’s break down the three major sectors that can apply for this fund:
- General (All sectors)
This includes private school owners
Private institutions generally
If you are unsure if your business falls under the hospitality industry, here is List of the hospitality industry in Nigeria that falls under the Micro, Small and Medium Enterprises (MSMEs)
- Arts and culture
- Food and beverages
- Health and sports
Requirements for N75bn Survival Fund for Small Business Owners
- Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission, CAC
- Must have BVN by company CEO
- Must have a staff strength of no less than 3 persons
- Must be owned by a Nigerian
How to apply:
During the official launching of the scheme, applicants were directed to apply at www.survivalfund.ng That has changed as the government launched a new Survival Fund Portal on Saturday, October 31, 2020. The old will be migrated to the new one.
Now, let’s take a quick look at some of the loans to provide by Nigeria’s apex bank for small businesses in Nigeria.
List of CBN’s Fund Interventions For SME Businesses After COVID-19
As we know after the COVID-19 pandemic, the Central Bank of Nigeria introduced several loan opportunities and fund interventions for small businesses across Nigeria.
CBN’s fund intervention includes:
- CBN Healthcare Research And Development Grants
- Creative Industry Financing Initiative (CIFI Loan)
- Anchor Borrowers Programme (ABP) Intervention For Agriculture
- Accelerated Agricultural Development Scheme (AADS Loan)
- AGSMEIS Loan For SME’S And Agricultural Businesses Without Collateral
- MSMEDF Loan – Micro, Small and Medium Enterprises Development Fund
CBN Fund For Healthcare Research And Development Grants
The Central Bank of Nigeria (CBN) has released the guidelines for interested candidates to access funds under the Healthcare Sector Research and Development Intervention Scheme (HSRDIS) grant.
The CBN’s Healthcare Research And Development Grant is aimed at strengthening the public healthcare system with innovative financing of research and development (R&D).
In the guidelines for CBN HSRDIS, it is to make sure that the fund is made available for new and improved drugs, vaccines and diagnostics of infectious diseases in Nigeria and is accessible to biotechnological and pharmaceutical companies, institutions, researchers, and research institutes for the research and development of drugs, herbal medicines, and vaccines for the control, prevention, and treatment of infectious diseases.
Creative Industry Financing Initiative (CIFI Loan)
In collaboration with the Bankers’ Committee developed a Creative Industry Financing Initiative (CIFI) which is known as Creative Industry loan.
The aim of this loan is to boost job creation in Nigeria, especially among young people, who are the most active in the creative industry.
CBN aims to improve access to long-term low-cost financing for entrepreneurs and investors in the Nigerian creative and information technology (IT) sub-sectors.
Who can apply for the Creative Industry Financing Initiative (CIFI Loan)?
The below businesses can apply for CIFI loan to benefit from it:
- Information Technology
- Movie Production
- Movie Distribution
- Music and
- Software Engineering Student Loan
How much can I get for my business?
- Software Engineering Student can access up to N3 million
- Movie Production business can access up to N30 million
- N500 million for Movie Distribution business
- Cover your rental/service fees for Fashion and Information Technology business
- Cover your training fees, equipment fees, and rental/service fees for the Music business
The requirements vary from bank to bank, besides being part of the creative industry (fashion, music, movies, and information technology), you are still expected to provide the following
- Registration with the Corporate Affairs Commission
- Comprehensive business proposal
- Clean Credit Bureau Report with no unpaid obligations
- Satisfactory CRMS report of owners, sponsors and directors
How to apply for CIFI Loan
- Visit a nearby bank
- Tell your bank how much you need.
- Your bank will supply you with details
Period For Repayment and Interest Rate
The maximum interest rate of 9.0% per annum (all charges inclusive) is applicable to all loans.
a) For Software Engineering Student Loan, it is a maximum of three years
b) For Movie Production and Distribution, it is a maximum of ten years
c) For Fashion, Information Technology (IT) and Music, it is a maximum of ten years
All the best.