How to Apply for Federal Government Palliative Loan and Grant for MSMEs and Nano-Businesses

The Federal Government has announced the application for a federal Government Palliative Loan and Grant Programme meant to cushion the effect of fuel subsidy removal on Small and Medium Enterprises (MSMEs) and Nano Businesses respectively in the Country.

About Federal Government Palliative Loan Programme

The N150b Federal Government Palliative Loan Programme is divided into two: N75bn for micro, small and medium-sized enterprises across various sectors, and N75bn specifically to manufacturers.

While MSMEs can access loan facilities up to N1m with a repayment period of three (3) years under the Federal Government Palliative Loan Programme, manufacturers can access up to N1bn for the purpose of financing for working capital with a repayment period of one (1) year for working capital or five (5) years for the purchase of machinery and equipment.

About Federal Government Palliative Grant Programme

The Federal Government Palliative Grant is a N75b Programme whereby eligible Nano-businesses can receive a one-time grant of N50,000 to assist them in their businesses.

The Federal Government Palliative Grant sum is N50,000.00 (Fifty Thousand Naira) per beneficiary, and it is designed to reach one million nano businesses in the 774 local government areas.

The Federal Government will collaborate with the State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representative Members, who will use the Federal Government’s selection criteria below to shortlist the beneficiaries from their constituents.

The target beneficiaries of the Federal Government Palliative Grant are 70% women and youth, 10% people with disabilities, and 5% senior citizens, while the remaining 15% is distributed to other demographics.

Types of MSMEs and Nano- business eligible to apply for the Federal Government Palliative Loan and Grant

1. Traders: These include single retail marketers, corner shop owners, petty traders, market men and women in open markets.

2. Food Services: These include food, fruits and vegetable vendors, etc

3. ICT: These include business centre operators, battery chargers, recharge card vendors, call centre agents

4. Transportation: These include wheelbarrow pushers, independent dispatch riders

5. Creatives: These include makeup artists, fashion designers, drycleaners.

6. Artisans: These include vulcanizers, shoemakers, painters, repairers.

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Federal Government Palliative Loan Amount, Interest Rate and Duration/Repayment Period

i. Federal Government Palliative Loan Amount

MSMEs under non-manufacturing Sector can access upto N1Million in the Federal Government Palliative Loan Programme

MSMEs under manufacturing Sector can access upto N1bn in the Federal Government Palliative Loan Programme

ii. Federal Government Palliative Loan Interest Rate

The Federal Government Palliative Loan Interest Rate for both manufacturers and non-manufacturers is 9% Interest per Annum.

iii. Federal Government Palliative Loan Duration/Repayment Period

The Federal Government Palliative Loan term is 24 months for MSMEs and Manufacturers (Working capital), while Manufacturers (Asset financing) has a 60-month tenor with a six-month moratorium.

In the repayment of the Federal Government Palliative Loan, banks will ensure equal and consecutive monthly repayment of principal and interest for the tenor of the loan.

How to Apply for Federal Government Palliative Loan

1. Open https://www.fedgrantandloan.gov.ng

2. Select "See Loans"

3. Or open the Federal Government Palliative Loan link directly through https://loan.fedgrantandloan.gov.ng

4. Select type of business

5. Create Account on the Federal Government Palliative Loan application portal

6. Fill in Business information, Business Owner(s)/Directors, Provide information about what the loan will help your business with

7. Submit Federal Government Palliative Loan application form after completion.

8. Wait for disbursement

How to Apply for Federal Government Palliative Grant

1. Open https://www.fedgrantandloan.gov.ng

2. Select "See Grants"

3. Or open the Federal Government Palliative Grant portal directly through https://grant.fedgrantandloan.gov.ng/apply

4. Provide personal details, Bank Account Information including BVN

5. Complete the Federal Government Palliative Grant Form

6. Then Submit.

7. Wait for disbursement