Stakeholders get charge on eligibility status
By Onwa Ekor
In a bid to boost the state’s micro, small, and medium enterprise (MSME) sector, Cross River government in partnership with the Bank of Industry (BOI), recently met with entrepreneurs.
The event provided local business owners with a masterclass on accessing the ₦2 Billion matching funds designated for economic development across the state.
The engagement session, held at the Prof. Eyo Ita House, Calabar, seeks to demystify the application process while providing clarity on the eligibility criteria for the facility.
Director-General and Chief Executive Officer of the Cross River Microfinance and Enterprise Development Agency (CR-MEDA), Great Ogban, stressed on the administration’s commitment to drive economic growth at the grassroot.
Ogban reassured that the present administration led by Prince Bassey Otu, will continue to do everything possible in order to check barriers associated with the provisions of credit facilities for entrepreneurs.
Representative of the Bank of Industry and Divisional Head (South- South) Pacqueens Irabor, while providing a detailed breakdown of the facility, explained that the loan is designed with a favorable tenure of three to five years at a single-digit interest rate of 7.5%.
Outlining the cost structure, Irabor also remarked that it includes an appraisal fee of one percent and a monitoring fee of 0.125 percent, both payable only after the formal acceptance of an offer letter.
The facility, he stated, is split into two categories of term loans, which cater for capital items like production equipment, as well as working capital loans, which cater for operational overheads.
The eligibility extends across a wide range of sectors including fashion, hospitality, agriculture, and manufacturing, while the fund also support importers of production equipment, though not finished retail goods.
To streamline the application process, the BOI highlighted the essential documents required, stipulating that, applicants must provide two invoices consisting of one proforma and one operational invoice along with 12 months of bank statements of the business account.
For those seeking less than three million naira, one guarantor is required and the guarantor can be a business owner, professional, bank staff member, or civil servant, while those seeking more than five to N10M, you will be required to provide two guarantors, collateral such as a Certificate of Occupancy of a land valued at two times the amount being requested, and the business must be registered as a limited liability company.
Supporting the initiative, Director of Land Bank, at the Cross River Geographic Information Agency (CRGIA), Yemi Nelson, addressed those concerned regarding collateral documentation.
He noted that the agency has streamlined the process of land documentation, with the highlight being the 60-day time frame for preparing Certificates of Occupancy.
Additionally, Managing Director of the Cross River Microfinance Bank, Ayi Archibong, reaffirmed the bank’s readiness to supporting the state’s MSME ecosystem, asserting that the bank now offers facilities to small businesses to further strengthen MSME development in the state.
