Business

COVID-19 CBN’s N50bn stimulus loan: Disbursement begins Thursday

Per Second NewsApril 22, 2020398

The Central Bank of Nigeria (CBN) says it will commence the disbursement of the first tranche of the N50 billion COVID-19 stimulus package credit facility for households and SME’s on Thursday.

So far, it has received over 80,000 applications for the fund which is being managed by the NIRSAL Microfinance Bank,

The Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure, who announced this, however, did not give details of the amount to be disbursed in the first tranche.

“Those whose applications are successful would start receiving their money on Thursday,” he assured.

Persecondnews recalls that the CBN had introduced the N50bn Targeted Credit Facility as a COVID-19 stimulus package to support households and Micro, Small and Medium Enterprises.

The N50 bn intervention is being financed from the Micro, Small and Medium Enterprises Development Fund.

In terms of limit, the loan amount would be determined based on the activity, cash flow and industry size of beneficiary, subject to a maximum of N25m for SMEs.

Households can access a maximum of N3m while working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover.

Based on the guidelines released by the CBN, those that can benefit from the fund are households with verifiable evidence of livelihood adversely impacted by COVID-19; existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic and enterprises with bankable plans.

According to the CBN guidelines, activities covered under the scheme include agricultural value chain; hospitality (accommodation and food services); health (pharmaceuticals and medical supplies); and airline service providers.

Others are manufacturing/value addition; trading and any other income-generating activities as may be prescribed by the CBN.