Are you in need of capital to start or fund your business? You do not need to worry anymore. CBN is proceeding with the 3 to 10 million grant for small and medium enterprises. The CBN grant is through the Youth Entrepreneurship Development Programme (YEDP). The program started on 15th March 2016 and has continued to improve the development of Nigerian youths, reduce unemployment, and contribute to boosting the country’s economy.
This was intended to create a source of income for the youth who are unemployed. The process is also a way to reduce the criminal activities that the majority of the youth are engaging themselves in such as cybercrime, stealing, and ritual for money to sustain their living. It is now certain that a hardworking youth who wants to earn income legitimately and also has a business idea can achieve this goal through this program.
It was ascertained that out of 36.3 million youths that represent 48% of the labor market, 13.6 million (37.1%) of them are unemployed. The scenario can not be allowed to continue noticing that the majority of the youths have excellent innovative ideas, creative, skills, and good dreams of being great but do not have the opportunity or the funding medium to achieve all this.
The program considered the barrier to starting a business, both small and medium which is a lack of enough capital to start. The scheme offers grants of 3 million to individual eligible youth and 10 million grants to groups of 4 to 10 people. This grant may be forfeited or may be paid back with a small interest, depending on your business type and the amount you requested. This scheme can be seen as a grant/loan. The required collateral for this program is very simple, we highlight them below.
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Are there any Requirements for this Grant Scheme?
Yes, the grant comes with a condition and criteria you have to meet for you to be eligible. However, these requirements are not hard or something that will cost you a penny. Here are some possible requirements for the grant program:
- You need to provide your academic certificate, be it an undergraduate or postgraduate certificate. This can serve as collateral if your requested fund is much.
- Your NYSC certificates will be submitted as well, it will still be included in the collateral requirement.
- A third-party guarantee will be needed to assure your originality and trust.
- You will pay a 9% interest rate annually for a range of three years if you request a big fund.
- A movable asset is acceptable for non-graduates.
- Youths that request low funds do not need to return the money, however, it depends on the kind of business you want to start.
- You must be operating a registered business and provide proof of your business.
Are there any Targeted People for this Grant?
The targeted people for this grant are the youth in general. The major people who need this grant are:
- The National Youth Service Corps (NYSC): This is majorly the freshly graduated student. Due to a lack of employment, it is always hard to start life. Life after school has been one of the most critical moments of a graduate life because at this point it is expected that you are working to earn money to sustain yourself and your family.
- Non-NYSC: These are also people who have tertiary institution certificates such as university, polytechnic, and college of education but are not employed after schooling.
- Artisans: Those are people with a First School Leaving Certificate or a technical certificate, They do not attend a higher institution but are not buoyant enough to start a business and create a source of income for themselves.
What are the Approved Business Areas for the CBN Grant?
The grant is made for youths who are interested in setting up a business but will depend on the kind of business you are interested in doing. The Businesses or commercial activities eligible for financing include:
- Agriculture: Fresh start or expanding projects in agriculture. The agricultural activities may include (crop production, fish farming, poultry or snail farming, etc).
- Cottage Industry: those that are interested in setting up manufacturing industries for small products. This also includes food production industries as well as restaurants.
- Creative industry: Individuals who are talented and naturally gifted with skills such as design, and arts and crafts. etc.
- Information and Communications Technology (ICT): Applicant with high knowledge of technology such as graphic design, web development, programming and coding, and cyber cafes among others.
- Artisans: Those with handwork such as phone and computer repairers, hairdressers, carpentry workers, plumbing workers, electricians, and brick layers will be financed as well.
Why Should I Apply for this CBN Grant Program?
There are many reasons you should apply for this CBN grant program. The rate of lack of employment in the country now especially during this period is high. The government can not provide sufficient jobs for the youth, with this grant you can finance a profitable business for your source of income.
The Grant is not refundable, However, it may be returned if you request high funds due to your business type after 3 years of doing business at an interest rate of just 9% per year, this is like N90,000 yearly if you are financed with N1,000,000. This is good enough if you are into a profitable business and put in your effort constantly.
The grant is much more easy to access. It will save you the pressure of getting a loan through a bank or loan app to finance your business. It will also save you from using your precious and important properties for collateral.
How Can I Apply for the Grant?
There is no difficulty in applying to this grant program, the application is easy and simple. you do not need money to buy any form or pay for application fees. see how you can apply below:
- Make sure that your business falls among the eligible businesses listed above.
- You may need to write a business plan to show how you intend to use this grant fund in your business.
- Arrange your collateral requirements and certificates.
- You will need to fill out and submit your application form along with the required documents through the CBN’s official website: www.cbn.gov.ng/Devfin/yedp.asp.
- CBN will review your application and reach out to you via email if there is further process.
- Wait to receive your grant directly in your bank account.
Also, Apply Now: FG Start to Disburse #50,000 Trade Grant |See How to Get the FG Grants
Important Information
Make sure you have NIN or any government-approved national identification card or voter card. Ensure that your BVN details correspond with the ones in your identity card especially your name and date of birth.
Review your data before you submit your application, and provide accurate BVN and account number to avoid losing the funds to another person or showing incorrect account details.
Conclusion
This grant is a great opportunity for you to start your dream. You can start small or medium-sized businesses with it and grow with time. Take this chance to create a source of income for yourself as well as create job opportunities for others. This will reduce the rate of unemployment and improve the economic status of the country.