The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has began disbursement of N5 billion loan to small business owners.
On Tuesday, SMEDAN announced that small and medium-sized enterprises (SMEs) are now accessing the N5 billion loan with a single-digit interest rate secured from Sterling Bank.
However, SMEDAN noted that some SMEs are encountering challenges meeting the eligibility criteria set by the bank.
To address these issues, support is being provided to help overcome these hurdles.
Charles Odii, the director-general of SMEDAN, stated on Tuesday that he met with Abubakar Suleiman, the managing director of Sterling Bank, on Monday to discuss these matters.
Odii explained that the bank attributed the difficulties faced by some SMEs to issues with formalization and other factors affecting eligibility.
“Yesterday, I met with Sterling Bank MD/CEO, and other officials to discuss the SMEDAN-Sterling loan program, which offers ₦5 billion to small businesses at a single-digit interest rate to increase access to finance,” he posted on X.
“While disbursements have been made and are ongoing, I raised concerns we received about the application process and difficulties some have faced in reaching the disbursement stage.
“The bank explained issues with formalization and other factors that prevented some businesses from meeting their eligibility criteria.
“We agreed on an action plan to address this, including continuous updates to the digital platform for 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.
“Our shared goal remains to support small businesses and ensure the loan opportunity is fully maximised for business growth.”
Odii added that the agency will be in touch with successful applicants to monitor their progress and offer tailored support to ensure they make the most of the opportunity.
On November 22, 2023, SMEDAN signed an agreement with Sterling Bank to provide a N5 billion loan facility to small businesses across the country.