SMEDAN, Bank launch N5billion loan for small businesses

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in collaboration with Sterling Bank Ltd, has introduced the N5 billion Databanc loan initiative to bridge financial gaps for small businesses.

The initiative, launched in Lagos under the theme “Building with Data: Promoting Economic Growth through Data-Driven Insights,” aims to provide easier access to funds for Nano, Micro, Small, and Medium Enterprises (NMSMEs) through a single-digit interest loan.

Lagos State Manager of SMEDAN, Mr. Bunmi Kole-Dawodu, emphasized that the funding tool is designed to offer local and tailored support for businesses at the smallest levels. He added that it would facilitate access to markets and other essential factors driving entrepreneurship.

“This initiative will enhance Nigeria’s export potential and provide accurate data on nano enterprises to support their growth and sustainability,” said Kole-Dawodu. He noted that SMEs have historically struggled to access financial interventions, but this platform would now provide accurate data and necessary business support.

“It is important to have the support of business membership organizations to encourage their members to register on the platform and foster data-driven insights,” Kole-Dawodu stated.

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He reaffirmed SMEDAN’s commitment to developing small businesses across the country and urged SMEs to trust the agency for comprehensive support. He also pledged to collaborate with partners, stakeholders, and business organizations to further advance the cause of small businesses in Nigeria.

SMEDAN Director General, Mr. Charles Odii, highlighted the critical role of data in making informed economic decisions to build a robust small business ecosystem.

“As the vanguard for livelihood enhancement, the agency will continue to bridge the gap between the government and small businesses,” Odii said. He noted that businesses often do not take advantage of available interventions, and Databanc aims to change that by building product knowledge about small businesses.

Head of SME Products at Sterling Bank Ltd., Mrs. Bolanle Tyson, explained that Databanc offers a formalized portal for accessing funding without a human interface, provided businesses have tax identification numbers and are registered with the Corporate Affairs Commission. The loan amounts range from N250,000 to N2,500,000 for a one-year period.

“With the SMEDAN Databanc Platform, NMSMEs will be appropriately captured with unique identifiers for business data integrity,” Tyson added. This initiative promises to make it easier for nano and micro businesses to access the funds they need to grow and thrive.