Cross River approves SMEDAN loan for 500 small businesses

The Cross River State Government has approved a single-digit interest loan facility for 500 small business owners in the state, as part of efforts to strengthen the local SME ecosystem. The initiative, in partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Sterling Bank, aims to provide financing support to entrepreneurs at a 5% interest rate.

According to the Director-General of Cross River State Microfinance and Enterprise Development Agency, Mr. Great Ogban, over 1,000 applications were received for the facility, with 500 selected after a rigorous screening and verification process. The screening involved enterprise development training, business plan preparation, and verification by an IFC-trained team.

The loan facility is expected to stimulate the state’s economy as the selected businesses scale up their operations. Repayment will be structured over a period of two to three years, allowing more entrepreneurs to access the fund. In addition to the loan facility, the state government also sponsored 1,000 free CAC certificates for the beneficiaries, with plans to expand to 10,000 next year as part of efforts to improve formalization.

The agency has strengthened its monitoring and evaluation framework to ensure the proper utilization of the funds. A recent statewide assessment validated the effective use of previous grants for retirees, and the agency plans to conduct regular monitoring and evaluation exercises to track the growth and compliance of the beneficiary businesses.

The initiative has been commended by the Calabar Chamber of Commerce, Industry, Mines and Agriculture, which described it as a significant boost to the state’s SME