The 2022 SMEDAN Jaiz Bank Matching Fund Program is accepting applications from micro and small businesses.
It collaborates with Development Finance Institutions (DFI) in Nigeria to provide capital and share basic credit risks for running entrepreneurial businesses in the country.
So, the goal is centered on growing micro-businesses by leveraging other financial institutions to redistribute start-up capital.
Also, the current fund is specifically for states identified by the SMEDAN Jaiz Bank Matching Fund Program. Thus, people from Bauchi, Gombe, Katsina, Niger, Kogi, Niger, Jigawa, and Adamawa are eligible provided they meet other qualification criteria in this scheme.
Learn about the SMEDAN program (including the merger with Jaiz Bank) in this article.
SMEDAN Jaiz Bank Matching Fund Program: Overview
The government has rolled out other fund tranches under the Nigerian Agency for the Development of Small and Medium-sized Enterprises (SMEDAN. Its 2022 program will roundup the initiative by the current government to grow and support MSEs.
Why do you need SMEDAN Jaiz Bank Matching Fund Program?
At the onset, a bill at the Nigerian senate with the acronym, BOFIA, sought to curb the proliferation of start-ups due to multi-layered implications for both political and economic parties involved.
Some major stakeholders pushed back, but the motion is set. The BOFIA bill would allow Nigeria’s apex bank, CBN, to completely regulate entrepreneurship businesses.
However, MSEs stand a good chance to scale through these hurdles via the SMEDAN Jaiz Bank program, although it focuses on states in the Northern parts. SMEDAN strives to maintain an inclusive policy, regardless. According to the official website, the vision is
”To establish a structured and efficient micro, small and medium enterprises sector that will enhance the sustainable economic development of Nigeria.”
Looking forward, SMEDAN puts facilities in place to provide required resources for micro, small and medium entrepreneurs and investors.
Further, the project typically subsidizes the credit risks by providing ready funds for eligible businesses.
On a slightly different note, Development Finance Institutions (DFIs) in Nigeria introduced a matching concept to merge SMEDAN agencies and financial institutions as joint-risk sharers for the SME funds.
The DFI partner countries will work according to the program application guidelines in specified Paragraphs (1-3) on the website.
Applicants will get due notifications before the current quota elapses, including application details.
Only applications from the eligible states listed below may access the SMEDAN Jaiz Bank Matching Fund Program. Check that your state of origin is included.
See the requisites for the application in the following section.
The DFI partner countries have designated carriers. Nigeria uses SMEDAN for this role.
Here are the guidelines _
- The current tranche will last for thirty (30) months from the date of disbursal.
- It will be between three (3) to six (6) months’ moratoriums (according to the business type).
- Retrieve and completely answer the Financial Application Form
- Sign the requisite Jaiz Bank Plc docs and pay accompanying charges, which includes ₦5000.00 each for credit search on at least two Credit Bureau website and the application fee.
Beneficiaries will also pay RTGS transfer fees, and compliance fees under CBN agricultural regulatory tax drafts.
Moreover, beneficiaries will have to pay the obligatory agricultural insurance obtained from Takaful in the purview of NAIC.
The SMEDAN Jaiz Bank Matching Fund Program application requirements include the following _
- GSI (Global Standing Instruction);
- Bank Verification Number;
- NIRSAL Credit Guaranty;
- Takaful Insurance voucher;
- Collateral (must be a movable asset) indexed with the NCR (National Collateral Registry) according to CBN policy for funds above ₦500,000.00
To avoid fraud (or disqualification), do not use a third party for this application .