Apply Now: Lagos Cares Grant Program for MSMEs (Up to ₦1.5 Million)
In response to the profound impact of the COVID-19 pandemic and aligned with the Federal Government of Nigeria’s ambitious goal of lifting 100 million Nigerians out of poverty within a decade, the government sought vital support from the World Bank to execute a two-year emergency response initiative known as the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES).
The Lagos COVID-19 Action Recovery and Economic Stimulus (CARES) Program represent a state-level intervention aimed at mitigating the local repercussions of the global COVID-19 pandemic. It is designed to safeguard the livelihoods of both existing and newly vulnerable households, while simultaneously bolstering the recovery of local economic activities, particularly within the Micro, Small, and Medium-sized Enterprises (MSMEs) sector.
Results Areas of Lagos Cares Program
The program encompasses three distinct Results Areas (RAs):
RA1 – Focus on Social Protection
This result area is centered on enhancing social protection mechanisms to shield vulnerable households from the economic fallout of the pandemic.
RA2 – Focus on Agriculture
Result Area 2 concentrates on revitalizing the agricultural sector to ensure food security and sustainable livelihoods.
RA3 – Focus on Micro Small and Medium-scale Enterprises (MSMEs)
As the responsible State’s MDA (Ministry, Department, or Agency) for MSME intervention, the Lagos State Employment Trust Fund (LSETF) is tasked with overseeing RA3. This outcome area is tailored to provide relief, facilitate recovery, and empower local MSMEs. It aims to reduce vulnerability and cushion the financial impact stemming from the ongoing COVID-19 crisis and its associated disruptions to regular commercial activities.
Grants Available Under RA3
Under Result Area 3 (RA3), the Lagos State Employment Trust Fund offers the following grants:
Credit Grant
The Credit Grant extends financial support to co-finance up to 40% of performing loans acquired by businesses from June 16, 2020, to the present day. These loans must originate from qualified financial institutions after the onset of the COVID-19 crisis.
Operations Grant
The Operations Grant is a conditional grant designed to subsidize ongoing operational expenses. This grant covers up to 50% of verifiable and documented monthly operational costs for a duration of 6 months. Eligible expenses include staff salaries, documented utilities, rent, documented private security expenses, alternative power supply, and more.
IT Enhancement Grant
The IT Enhancement Grant is aimed at empowering Micro and Small Enterprises (MSEs) to enhance their technological capabilities. It supports the adoption of technology and the upgrade of digital tools that facilitate remote work. This non-cash grant encompasses IT infrastructure, connectivity, and digital technology tools such as laptops, internet services, e-commerce tools, and productivity software suites.
Grant Amounts
The grant amounts vary based on the classification of businesses:
- Micro Enterprises: Up to ₦1 Million for Credit Grant and Operations Grant; Up to ₦400,000 in hardware or software for IT Enhancement Grant.
- SMEs: Up to ₦1 Million for Credit Grant and Operations Grant; Up to ₦1.5 Million in hardware or software for IT Enhancement Grant.
Requirements for Micro Enterprises
To qualify for the grants, Micro Enterprises must meet the following requirements:
- BVN of Principal
- Company Registration, where applicable
- Evidence of existing business operation
- LASRRA (Lagos State Residents Registration Agency)
- Evidence of tax payment
- Evidence of existing loans from qualified financial institutions
- Minimum of 3 staff
Requirements for SMEs
SMEs seeking these grants must fulfill the following requirements:
- BVN of Directors
- Company Registration
- Evidence of existing business operation
- Evidence of Tax Payments
- LASRRA of Directors
- Evidence of existing loans from qualified financial institutions
- Minimum of 10 staff
To Apply Visit ; https://lsetf.ng/content/lagos-cares
Note: Previous beneficiaries of the Operations grant are now eligible for the Credit Grant, provided they have obtained a loan from a licensed microfinance or commercial bank between June 16, 2020, and the present day. Additionally, previous beneficiaries of the Credit Grant can now apply for the Operations Grant.
In conclusion, the Lagos Cares Grant Program for MSMEs represents a significant opportunity for businesses in Lagos State to access financial support and enhance their resilience in the face of the ongoing challenges posed by the COVID-19 pandemic. Whether you’re a micro enterprise or an SME, these grants can provide the necessary boost to help your business thrive. Apply now and take a step towards securing a brighter future for your enterprise.
Frequently Asked Questions (FAQs)
- Who is eligible to apply for the Lagos Cares Grant Program?Both Micro Enterprises and SMEs meeting the specified requirements can apply for the program.
- What is the application deadline for the grants?The application deadlines are typically announced when the program is open for applications. Please refer to official sources for the most up-to-date information.
- Can a business apply for more than one type of grant under RA3?Yes, businesses meeting the eligibility criteria can apply for both the Credit Grant and the Operations Grant.
- Are previous beneficiaries of the Operations Grant eligible for the Credit Grant?Yes, if you have obtained a loan from a licensed microfinance or commercial bank between June 16, 2020, and the present day.
- What documents are required for the application process?The required documents vary depending on whether you are a Micro Enterprise or an SME. Refer to the specific requirements outlined for each category in the article.
