The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has commenced the disbursement of a N5 billion loan facility to small and medium-sized enterprises (SMEs) at a single-digit interest rate, secured from Sterling Bank.

Charles Odii, SMEDAN’s director-general, highlighted that while the loan disbursements are ongoing, some SMEs face challenges in meeting Sterling Bank’s eligibility criteria. Odii met with Abubakar Suleiman, the managing director of Sterling Bank, to address these issues.

Odii explained, “We discussed the difficulties some businesses encounter during the application process, particularly with formalization requirements. We have agreed on an action plan that includes continuous updates to the digital platform, providing support for applicants to meet the eligibility criteria, and offering clear guidance to applicants both online and at bank branches.”

This initiative follows an agreement signed between SMEDAN and Sterling Bank on November 22, to provide financial support to small businesses across Nigeria. The agency will monitor successful applicants and offer tailored support to ensure the loans are effectively utilized for business growth.

The goal is to enhance access to finance for SMEs, thereby fostering economic development and business expansion within the country.