The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced that small and medium-sized enterprises (SMEs) across the country have begun to access the N5 billion loan it secured from Sterling Bank.
This loan comes with a single-digit interest rate, making it a favorable option for many businesses. The initiative aims to support and boost the growth of SMEs, providing them with much-needed financial assistance to expand their operations, invest in new technologies, and create more job opportunities.
This development is expected to have a significant positive impact on the Nigerian economy by fostering entrepreneurship and innovation among small business owners.
However, SMEDAN said that some small and medium-sized enterprises (SMEs) are facing hurdles in meeting the bank’s eligibility criteria. To address this issue, support is being offered to these businesses to help them overcome these challenges.
This support includes guidance on how to meet the requirements, assistance with the necessary documentation, and advice on improving their business practices to qualify for the loan.
SMEDAN is committed to ensuring that as many SMEs as possible can benefit from this financial opportunity, recognizing the crucial role they play in the economic development of Nigeria.
By providing this support, SMEDAN aims to enhance the chances of SMEs securing the loan and contributing to the growth and diversification of the Nigerian economy.
Charles Odii, the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), reported that he met with Abubakar Suleiman, the Managing Director of Sterling Bank, on Monday to discuss issues related to the SMEDAN-Sterling loan program.
This program offers ₦5 billion to small businesses at a single-digit interest rate to increase access to finance.
Odii posted about the meeting on X, stating that while disbursements have been made and are ongoing, there have been concerns about the application process and difficulties some businesses have faced in reaching the disbursement stage.
The bank explained that issues with formalization and other factors have prevented some businesses from meeting their eligibility criteria. To address these challenges, an action plan was agreed upon.
This plan includes continuous updates to the digital platform to ensure a seamless experience, support for applicants who failed the eligibility test to address the responsible factors, and providing clear answers to applicants’ questions online or at bank branches.
The shared goal is to support small businesses and ensure the loan opportunity is fully maximized for business growth.
Odii also mentioned that SMEDAN will contact successful applicants to monitor their progress and offer tailored support to ensure they fully leverage the opportunity.
On November 22, SMEDAN signed an agreement with Sterling Bank to provide a ₦5 billion loan facility to small businesses across the country.