BY GIOVANNI EMEPHIA
THE Delta State Government is putting finishing touches to plans to launch a game-changer in small business funding in the state, with the impending launch of a N1 billion Small and Medium Scale Entreprises (SME) Fund, TO BE managed in partnership with the Bank of Industry (BoI).
The Commissioner for Economic Planning, Mr. Sony Ekedayen revealed the government’s intention to provide access to critical funding for small and medium scale enterprises in the state in an exclusive interview in Asaba.
Ekedayen revealed that the State Executive Council (SEC) has already approved a N1 billion seed money to kick-start the process, stating that Deltans who are into all kinds of small businesses would be able to access a single digit loan facility to enable them upscale their businesses and contribute meaningfully to the growth of the economy of the state.
Describing Small and Medium Scale Enterprises as the backbone of any virile economy, Commissioner Ekedayen stressed that Governor Sheriff Oborevwori’s decision to intervene in the provision of accessible funds to this sector was borne out of his conviction that strengthening the local small enterprises was a key strategy in creating a resilient economy for the state.
Apart from the single-digit interest rate, as compared to high lending rates in commercial banks in the country, beneficiaries would also enjoy a flexible repayment period of possibly up to five years, with a moratorium of one to 12 months.
“Interest for this loan is going to be in the region of nine percent And if you know, you know. Lending rates at commercial bank rates are in the region of 35%. So, if you’re getting the loan at nine percent it would take a thoroughly unserious businessman not to be able to pay back within the very flexible repayment period.
“Most of the commercial bank loans are usually short tenured, 90, 180, maximum 360 days. But under this scheme, we’re looking at one to five years and the moratorium of at least one to 12 months. So, it doesn’t get any better than this. And the loans, of course, are going to be collateralized by the borrowers. I mean, you must meet the credit criteria of the bank. And this is to ensure that the money is repaid back so that more beneficiaries can be attended to.”
While appealing to Deltans to continue to support the policies of the administration, Ekedayen assured Deltans that Governor Oborevwori was desirous of taking development to all nooks and crannies of the state.
As the Oborevwori administration approaches the second-year mark of a remarkable first tenure, the state government has continued to show its commitment to the welfare of Deltans through a deliberate strategy of investing in social welfare programmes, as well as in small businesses that drive sustainable growth in the state, he added.
