Modalities for CBN COVID-19 Intervention Fund

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Here are the Modalities for CBN COVID-19 Intervention Fund. It’s the CBN introduced N50bn Targeted Credit Facility as a stimulus package to support households and micro, small and medium enterprises. Therefore, these are the modalities for accessing the N50bn COVID-19 intervention fund. As it is, a major economic intervention facility for Households & MSMEs in Nigeria. As a matter of fact, this Guidelines outlines the operational modalities for the Scheme.

How Did COVID-19 Affect You?

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Are you in fact affected economically by COVID-19? Is your family or business source of income so adversely affected? Is your investment capital depleted by COVID-19 pandemic? As a matter of fact, the CBN intervention fund is to help cushion such negative impacts on the source of income. This is because businesses are hurt. People are hurt. And, in fact, people are no longer staying on jobs. So, the idea is to provide cash flow which has been disrupted by the lockdown occasioned by the pandemic. On the other hand, the facility is intended to provide liquidity for businesses to come up again.

The Modalities for CBN COVID-19 Intervention Fund:

(A) The Loan Limit:

Furthermore, this 2 classes of the loan target are having different but similar modalities. The SMEs can access up to N25,000,000. However, this is to be determined based on the activity, cash-flow and industry or segment size of beneficiary. On the other hand, the Households can access a maximum of N3 million. In general, the working capital is to be a maximum of 25% of the average of the previous 3 years’ annual turnover. That means, this fund is for existing enterprises. So, where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice.

(B) The Applications from Households and MSMEs

The procedure for accessing the loan is that:-

i. Eligible households or MSMEs shall submit applications directly to NIRSAL Microfinance Bank (NMFB), containing the following;

The persons BVN,
Business registration (where applicable) and
Business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic

ii. NMFB shall appraise and conduct due diligence on the applications.

iii. NMFB shall forward satisfactory applications to the CBN for final approval

iv. The CBN reviews applications and gives final approval for disbursement to NMFB.

Modalities for CBN COVID-19 Intervention Fund

(C) Applications from Corporate Entities.

Furthermore, those for corporate entities modalities are as follows;

Such entities shall submit application to NMFB with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.
NMFB shall appraise and conduct due diligence on the applications.
If satisfied, NMFB shall forward the applications to CBN for final approval
Furthermore, the CBN reviews the applications and gives final approval for disbursement to NMFB.

(D) Activity Monitoring and Reporting

Periodically, NIRSAL MFB monitors the projects financed under the Scheme. This is to ensure that the objectives of the programme is achieved.

(E) Responsibilities of Stakeholders

The 2 stakeholders CBN and NIRSAL MFB are under obligations to ensure that the project works. Therefore, their shared responsibilities include;

i. CBN to:

Provide the seed fund for the Scheme
Release funds to NIRSAL MFB for disbursement to successful applicants.
Review the Guidelines of the Facility as may be necessary
Receive and process periodic returns from NIRSAL MFB.
Monitor and evaluate implementation of the Scheme by NIRSAL MFB.

ii. NIRSAL MFB to:

Validate the status and BVN of the applicants;
Process and disburse funds to approved beneficiaries;
Maintain records of all beneficiaries and disbursements;
Forward periodic returns on the prescribed format on the Scheme to CBN;
Comply with the Guidelines; and
Carry out any other duties as the CBN may prescribe from time to time.

(F) Modalities for CBN COVID-19 Intervention Fund – Exit Date:

The exit date ffor this project is already determined. It shall cease to exist by 31st December 2024. The implication is that all the loan debtors shall have been able to liquidate their debts by this date.

Modalities for CBN COVID-19 Intervention Fund – Who is concerned?

So, one of the questions seeking for answer is, why explaining the modalities to us? In fact, I am happy you have read up-to this level. That means, our aim is achieved. This piece is to educate and inform you, so that you are well armed before you go in for the loan. As a matter of fact, the loan is not a grant or subsidy for COVID-19. It’s a full-fledged term loan with conditionalities good enough to enable you do business and be able to pay back in time.

What our Organisations does for you:

Our organisation, complete Full Marks Consultants (CFMC) Limited, will help you organise yourself for this loan application. In doing that we give you up-to date information on the programme and prepare your existing business operational business plan.

Modalities for CBN COVID-19 Intervention Fund

Contact us on +234 8034347851 or email via [email protected]. In summary, CFMC Limited renders other business support services. These include:

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.

Please, share for us.

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.