Lagos Cares Grant Program for MSMEs (Up to ₦ 1.5Million) – Apply Now

Lagos Cares Grant Program for MSMEs (Up to ₦ 1.5Million) – Apply Now

The Federal Government of Nigeria sought crucial assistance from the World Bank to carry out a two-year emergency response initiative known as the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) in response to the devastating effects of the COVID-19 pandemic and in line with the ambitious goal of the Federal Government of Nigeria to lift 100 million Nigerians out of poverty within a decade.

The Lagos COVID-19 Action Recovery and Economic Stimulus (CARES) Program is a state-level initiative designed to lessen the COVID-19 pandemic’s local effects. It is intended to support the recovery of local economic activity, especially in the Micro, Small, and Medium-sized Enterprises (MSMEs) sector, while simultaneously defending the livelihoods of both existing and newly vulnerable households.

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Areas Covered For Lagos Cares Program

The program encompasses three distinct Results Areas (RAs):

RA1 – Focus on Social Protection

This result area is centered on enhancing social protection mechanisms to shield vulnerable households from the economic fallout of the pandemic.

RA2 – Focus on Agriculture

Result Area 2 concentrates on revitalizing the agricultural sector to ensure food security and sustainable livelihoods.

RA3 – Focus on Micro Small and Medium-scale Enterprises (MSMEs)

As the responsible State’s MDA (Ministry, Department, or Agency) for MSME intervention, the Lagos State Employment Trust Fund (LSETF) is tasked with overseeing RA3. This outcome area is tailored to provide relief, facilitate recovery, and empower local MSMEs. It aims to reduce vulnerability and cushion the financial impact stemming from the ongoing COVID-19 crisis and its associated disruptions to regular commercial activities.

Grants Available Under RA3

Under Result Area 3 (RA3), the Lagos State Employment Trust Fund offers the following grants:

Credit Grant

The Credit Grant extends financial support to co-finance up to 40% of performing loans acquired by businesses from June 16, 2020, to the present day. These loans must originate from qualified financial institutions after the onset of the COVID-19 crisis.

Operations Grant

The Operations Grant is a conditional grant designed to subsidize ongoing operational expenses. This grant covers up to 50% of verifiable and documented monthly operational costs for a duration of 6 months. Eligible expenses include staff salaries, documented utilities, rent, documented private security expenses, alternative power supply, and more.

IT Enhancement Grant

The IT Enhancement Grant is aimed at empowering Micro and Small Enterprises (MSEs) to enhance their technological capabilities. It supports the adoption of technology and the upgrade of digital tools that facilitate remote work. This non-cash grant encompasses IT infrastructure, connectivity, and digital technology tools such as laptops, internet services, e-commerce tools, and productivity software suites.

Grant Amounts

The grant amounts vary based on the classification of businesses:

• Micro Enterprises: Up to ₦1 Million for Credit Grant and Operations Grant; Up to ₦400,000 in hardware or software for IT Enhancement Grant.
• SMEs: Up to ₦1 Million for Credit Grant and Operations Grant; Up to ₦1.5 Million in hardware or software for IT Enhancement Grant.

Requirements for Micro Enterprises

To qualify for the grants, Micro Enterprises must meet the following requirements:

• BVN of Principal
• Company Registration, where applicable
• Evidence of existing business operation
• LASRRA (Lagos State Residents Registration Agency)
• Evidence of tax payment
• Evidence of existing loans from qualified financial institutions
• Minimum of 3 staff

Requirements for SMEs

SMEs seeking these grants must fulfill the following requirements:

• BVN of Directors
• Company Registration
• Evidence of existing business operation
• Evidence of Tax Payments
• LASRRA of Directors
• Evidence of existing loans from qualified financial institutions
• Minimum of 10 staff

To Apply Visit ; https://lsetf.ng/content/lagos-cares

Note: Previous beneficiaries of the Operations grant are now eligible for the Credit Grant, provided they have obtained a loan from a licensed microfinance or commercial bank between June 16, 2020, and the present day. Additionally, previous beneficiaries of the Credit Grant can now apply for the Operations Grant.

In conclusion, the Lagos Cares Grant Program for MSMEs represents a significant opportunity for businesses in Lagos State to access financial support and enhance their resilience in the face of the ongoing challenges posed by the COVID-19 pandemic. Whether you’re a micro enterprise or an SME, these grants can provide the necessary boost to help your business thrive. Apply now and take a step towards securing a brighter future for your enterprise.