Business & Loans

Apply For JAIZ BANK PLC And SMEDAN Matching Fund Programme

Published

1 year ago

March 5, 2022

Apply For JAIZ BANK PLC And SMEDAN Matching Fund Programme

The JAIZ Bank Plc and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN are inviting qualified micro and small enterprises (MSEs) located in the following listed below States in Nigeria to apply for the Matching Fund programme 2022.

Katsina State

Nasarawa State

Niger State

Kogi State

Jigawa State

Bauchi State

Adamawa State and

Gombe State

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Programme Terms And Conditions

The here-under definitions, terms and conditions shall apply under the Programme, viz:

i. Target Beneficiaries Definition: Target beneficiaries for this Programme shall be labour-intensive, micro or small enterprises (MSEs), operating in the real sector. These shall ideally be innovative value-added, agri-business products that are establishing a footprint in the Nigerian market, and require additional funds to increase output. Qualified enterprises shall also be utilizing local raw materials (at least 65%); are regulatory-compliant and capable of generating employment for at least 2 – 5 additional persons as a result of the facility obtained. Finally, in line with the current emphasis for back-to-back value-chain financing, agri-business on-farm/warehousing enterprises shall also be considered.

ii. Financing available under the programme: Prospective beneficiaries may apply for financing within the range of N2 million– N5 million, with enterprise modernization and/or expansion as the focus.

iii. Conditions/Terms applicable: The markup/profit rate applicable on all financing, under this programme, shall not exceed single-digit per annum. The financing tenor is for a maximum period of 30 months, effective from the date of the first disbursement.

This is inclusive of a moratorium (which may vary between 3 – 6 months, depending on the type of enterprise). Beneficiaries must complete a finance application form, sign all necessary documents with Jaiz Bank Plc, and shall also bear the cost of all approved charges (i.e. Application fee of N5,000.00 and N5,000.00 for the cost of conducting credit search on beneficiaries on at least two (2) Credit Bureau sites for processing facilities which are in line with the CBN regulatory provisions and RTGS transfer charges.

These total N10,000.00 for both fees). The mandatory Agricultural Insurance cover by NAIC and also the key man Takaful insurance by a reputable Takaful company applies to all beneficiaries over the project life.

iv. Applicable Security: In line with the conditions/provisions of this programme, processing of this facility will require fulfilment and provision of the following:

a. Provide Bank Verification Number (BVN).

b. Execute Global Standing Instruction (GSI) order.

c. NIRSAL Credit Guaranty Cover.

d. A moveable asset to be registered under the National Collateral Registry (NCR), in line with CBN policy for facility/financing above N500,000.00.

e. Key man risk Takaful insurance cover.

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Programme Implementations Modalities

To facilitate inclusiveness and transparency, under the programme, the hereunder are the approved, step-wise, implementation modalities for all applicants.

i. Portal Opening: This shall be done via a public notice placed in selected national dallies to invite all suitably qualified MSEs to apply by clicking the icon jaizbank/smedanmatchingfundprogramme on the SMEDAN website (www.smedan.gov.ng). Once migrated to the sme credits portal, pre-qualification of applicants shall commence.

ii. Pre-qualification of Applicants: This takes the form of soliciting binary (i.e. Yes/No) responses to a number of fields to confirm the
applicant’s suitability for the facility. Disqualified applicants cannot proceed beyond this stage.

iii. Business Plans Submission: To continue, pre-qualified applicants shall be required to pay a processing fee of ten thousand (N10,000.00) naira for the Business Plan template on the platform (Note that a separate training fee is not required). Also, note that a number of Business Plan slots shall be allocated to each participating state. Consequently, entries for such state shall cease when the required number is met

iv. Business Plans Evaluation It shall be the responsibility of SMEDAN, using approved in-house criteria, to shortlist business plans for field validation. Such criteria shall include the following, bankability of business plans; equitable distribution of prospective beneficiaries; gender balance.

v. Field Validation Visits/Referral to Jaiz Bank: Field visits shall be carried out to all shortlisted MSEs, from the preceding stage. Validated MSEs from this process shall then be referred to Jaiz Bank.

vi. Due Process/Confirmation of Final Beneficiaries: This shall be based on Jaiz Bank Plc Financing Risk Assets Acceptance Criteria (RAAC), as suitably modified for this programme. Jaiz Bank Plc shall thereafter inform all successful applicants, with guidance on the next steps.

vii. Refresher Training of Selected Beneficiaries: All selected beneficiaries shall receive refresher entrepreneurship training, at no extra cost, by SMEDAN, as a condition to drawdown.

viii. Opening of Bank Accounts: All successful applicants shall open (and operate) accounts with the Jaiz Bank Plc branch nearest to their project location. The required 10% lien deposit shall thereafter be paid into their accounts by SMEDAN, prior to draw-down.

ix. Financing Disbursement/On-field Repayment and Advisory Services: Finance disbursement shall be by Jaiz Bank Plc in line with its non-interest model of financing, and shall also commence recovery at the end of the advised moratorium. SMEDAN, on its part, shall carry out quarterly advisory visits to beneficiaries, during this period.