How to Apply CBN N50bn COVID-19 Intervention Fund

How to Apply CBN N50bn COVID-19 Intervention Fund: The Central Bank of Nigeria says interested stakeholders must meet its set criteria to access its N50bn intervention loans for small and medium scale enterprises (MSMEDF).

The CBN introduced the N50bn Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic, and guidelines to access the funds.

How to Apply CBN N50bn COVID-19 Intervention Fund.

To access, it stated that, “Eligible households or MSMEs shall submit applications directly to NIRSAL Microfinance Bank; and the application must, among others, contain BVN number, business registration (where applicable) and business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

“NMFB shall appraise and conduct due diligence applications; upon a satisfactory appraisal of application, NMFB shall forward the applications to the CBN for final approval; and CBN reviews applications and gives final approval for disbursement to NMFB.”

RELATED: CBN N50bn COVID-19 Fund Disbursement Begins Thursday

The bank stated that eligible participants were households and existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic; and enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.

Activities covered under the guidelines include agricultural value chain activities, hospitality (accommodation and food services), health (pharmaceuticals and medical supplies), airline service providers, manufacturing/value addition, trading, and any other income-generating activities as may be prescribed by the CBN.

Join WhatsApp Group Join Now
Join Telegram Group Join Now

It stated that the eligible participating financial institution for the scheme was NIRSAL Microfinance Bank.

The CBN said the loan amount would be determined based on the activity, cashflow and industry/segment size of the beneficiary, subject to a maximum of N25m for SMEs; and households could access a maximum of N3m.

It stated that working capital would be a maximum of 25 percent of the average of the previous three years’ annual turnover (where the enterprise was not up to three years in operation, 25 percent of the previous year’s turnover would suffice).

SEE ALSO: Nigeria Centre for Disease Control Recruitment 2024 & How to Apply

It added that interest rate under the intervention would be five percent per annum (all-inclusive) up to 28th February 2024 and thereafter, the interest on the facility would revert to nine percent (all-inclusive) as from 1st March 2024.

The regulator stated that working capital would be for a maximum period of one year, with no option for rollover, while term loan would have a maximum tenor of not more than three years with, at least, one-year moratorium.

It stated that the collateral to be pledged by beneficiaries under the program must be acceptable by NIRSAL MFB, but may include any one or more of others which are moveable assets duly registered on the National Collateral Registry; simple deposit of title documents, in the perfectible state; and deed of debenture (for stocks), in the perfectible state.

Others were irrevocable domiciliation of proceeds; two acceptable guarantors; personal guarantee of the promoter of the business; life insurance of the key-man, with NMFB noted as the first loss payee; and comprehensive insurance over the asset.

Join @mediangrr on Telegram

Related Posts:

2 thoughts on “How to Apply CBN N50bn COVID-19 Intervention Fund”

Leave a Comment

Send this to a friend
Hi, this may be interesting you: How to Apply CBN N50bn COVID-19 Intervention Fund! This is the link: https://www.mediangr.com.ng/education/how-to-apply-cbn-n50bn-covid-19-intervention-fund/3841/