Application for the CBN N50bn COVID-19 Intervention Fund

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This is the Application for the CBN N50bn COVID-19 Intervention Fund. It’s a CBN introduced stimulus package of N50bn Targeted Credit Facility to support households and Micro, Small and Medium Enterprises adversely affected by the COVID-19 pandemic. As a matter of fact, the Central Bank of Nigeria says interested stakeholders must meet its set criteria to access its N50bn intervention loans.

Application Conditions:

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Therefore, if you are interested in this loan the following application conditions must apply. You have to carefully read this post to understand all that is required for you and the steps involved.

Step 1; Loan Application:

Eligible households or MSMEs shall submit applications directly to NIRSAL Microfinance Bank;
The application must, show the applicants BVN number,
Business registration documents (where applicable) and
Business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

Step 2; NMFB Appraisal of application:

At receiving the loan,

NMFB shall appraise and conduct due diligence applications;
And get a satisfactory appraisal of application,
Then, NMFB shall forward the applications to the CBN for final approval;
And CBN will review applications and give final approval for disbursement to NMFB.

Step 3; Other Conditions:

Eligible Participants:

Furthermore, the CBN guideline states that eligible participants are households and existing enterprises. It further states that such participants must be those with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic. In addition, they must be enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.

Activities Covered:

Furthermore, the guidelines specifies the following activities to be covered. These 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.

Application for the CBN N50bn COVID-19 Intervention Fund.

Participating Financial Institution:

In addition, the circular states that the eligible participating financial institution for the scheme is NIRSAL Microfinance Bank.

The Desired Loan Conditions:

Furthermore, the CBN guideline indicates the criteria for determining the amount of loan to be obtained. In fact, it states that the loan amount would be determined based on the applicant’s business performance/activity. Others are the business cash-flow and industry/segment size of the beneficiary. On the other hand, that the maximum loan for SMEs is N25m while those for the households is a maximum of N3m.

With regard to the loan usage, the working capital would be a maximum of 25% of the average of the previous three years’ annual turnover. This is for enterprises that has been in operation for at least three years. For those less than three years in operation, 25% of the previous year’s turnover would be considered.

The interest rate is to be 5% per annum (all inclusive) up to 28th February 2021. And after 2021, the interest on the facility would revert to 9% (all inclusive) as from 1st March 2021.

The working capital is for a maximum period of one year, with no option for rollover. On the other hand, term loan would have a maximum tenor of not more than three years with, at least, one year moratorium.

Collateral Conditions for Application for the CBN N50bn COVID-19 Intervention Fund.

Furthermore, the collateral to be pledged by beneficiaries under the programme must be acceptable by NIRSAL MFB. In fact, this may include any one or more of the following. These re moveable assets duly registered on the National Collateral Registry. In addition, are simple deposit of title documents in perfectible state and deed of debenture (for stocks), in perfectible state.

Additionally, other form of collateral are irrevocable domiciliation of proceeds; two acceptable guarantors and personal guarantee of the promoter of the business. In addition, re life insurance of the key-man with NMFB noted as the first loss payee and comprehensive insurance of the asset.

Application for the CBN N50bn COVID-19 Intervention Fund. – Application Get Started:

This move requires that you submit applications directly to NIRSAL Microfinance Bank. It also shows that you submit your BVN number. You also need your business registration documents. Needed also is your Business Plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

As a matter of fact, you’ve to consider what required documents that re not in your possession now. You have to get them. In fact, this ‘s where we come in to help you out. Complete Full Marks Consultants Limited will get you started with the following.

Business Information
Business Start-up guide/manual
Incorporation Documentation @ CAC
Import Export license if required
Comprehensive Business plan
Tax management Services
Statutory annual returns both for FIRS and CAC and others.
Business consultancy services etc. – mentorship and links with foreign and domestic supplies, middlemen and export/import forwarding agents.

Finally, if you enjoyed this post, please, help us share.

Ane

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.