The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has entered into a partnership with Sterling Bank to offer a N5 billion loan facility to small businesses across the country.
The memorandum of understanding (MOU) was officially signed in Abuja on Wednesday, with Charles Odii, the director-general of SMEDAN, and Abubakar Suleiman, the managing director and CEO of Sterling Bank, formalizing the agreement.
In a statement, SMEDAN highlighted the significance of the initiative in realizing its commitment to promoting prosperity by facilitating the growth of small businesses through improved financial access.
This move aligns with President Bola Ahmed Tinubu’s Renewed Hope agenda, focusing on growth-oriented economic reforms and support for SMEs, the agency noted.
The agreement with Sterling Bank follows a similar commitment with the Anambra State government for a N1 billion loan portfolio for small businesses in the state.
The director-general of SMEDAN, Charles Odii, expressed plans to announce more partnerships with other state governments and private entities to further enhance financial access for small businesses.
He emphasized that the N5 billion agreement with Sterling Bank is a significant milestone in stimulating economic growth, driving prosperity, and improving SMEs’ access to finance.
Sterling Bank’s Managing Director and CEO, Abubakar Suleiman, explained that the partnership with SMEDAN aims to provide timely access to finance for small businesses.
Suleiman emphasized the importance of guiding these businesses through a formalization process crucial for sustainability and access to funds, including record-keeping, separating personal and business finances, and investing in competitive strategies.
To access the loan facility, businesses need to register with SMEDAN and complete an application form available on the agency’s website.
The disbursement process by Sterling Bank will commence in two weeks, with repayment starting after a minimum period of three months.
The loan facility, available nationwide, offers options ranging from N250,000 to N2,500,000, with a duration period of 24 months.