Federal Government Loans For Small Businesses To Apply in Nigeria
In any nation, the federal government plays a vital role in its development and one way to facilitate that development is through loans.
You can also read: How To Get Nigeria Youth Investment Fund Into Your Bank Account
Offering loans to small businesses to invest and grow is one of the major things to do as the government of a particular nation, by doing so, you will create more job opportunities, thereby empowering the youths.
In this article, we will be looking at some of the federal government loans for small businesses, so if you’re a small business owner, make sure you read to the end.
Different Institutions That Handles Federal Government Loans for Small Businesses
Below are several institutions that handles federal government loans:
- The central bank of Nigeria (CBN)
- Bank of Industry (BOI)
- Bank of Agriculture (BOA)
- Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
- Development Bank of Nigeria (DBN)
- Nigerian Export-Import Bank (NEXIM)
Federal Government Loans For Small Businesses in Nigeria
MSMEDF Loan – Micro, Small and Medium Enterprise Development Fund
This fund was established by the CBN in order to facilitate the promoting of small scale Businesses in the country. It simply has a task of identifying financing gaps and plugging it for accelerated development. Also, the loan covers a verity of businesses including trade and commerce, artisans, cottage industry, agricultural value chain, etc
AGSMEIS Loan for SMEs and Agricultural businesses
the government specially designed this loan for SMEs in the country. However, it was birthed from a partnership between the government, through CBN, and the Bankers’ committee. Also, the loan promotes agricultural businesses too, and is disbursed through NIRSAL Microfinance bank primarily, and some other banks.
Creative industry Financing Initiative (CIFI Loan)
This industry currently employs a large portion of youths in the country. They made this loan available to employ even more. They focuses own giving loans to active business owners in order to help them boost their business.
Anchor Borrowers Programme (ABP) Intervention for Agriculture
This program is an initiative of the Central Bank of Nigeria (CBN) and is majorly for the agricultural sector. However, the loan targets small-scale farmers engaged in producing certain commodities who are part of an approved group. However, it’s not only for farmers, as businesses related to agriculture can also apply for the loan.
Accelerated Agricultural Development Scheme (AADS Loan)
agriculture has long been the focus of the government, which is why they receive lots of funding. Therefore, this loan also applies to the agricultural sector and aims to engage a good number of youths in agricultural production. Furthermore, it hopes to reduce the rate of unemployment and encourage economic diversification. This loan is only available to youths of age 18 to 35.
How Do I Apply For Federal Government Businesses Loans in Nigeria
The loans mentioned above are very easy to apply, all you need to do is to follow the bellow instructions and you are good to go.
- First thing to do is to go to the official online portal as provided by the body handling the loan
- Read carefully about the loan requirements and ensure you qualify for the one you want
- Proceed to follow the application process as stated by the official release of the government about the loan.
Note: Some of the loans can be applied online, while some might need you to come physically to their office to apply. Just read the instructions stated in their respective official website.