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Delta CARES program outline disbursement strategy for MSME loans




Delta COVID-19 Action Recovery Economic Stimulus ( Delta Cares Programme), under the Result Area 3 has mapped out strategy to implement the Disbursement Link Indicator, DLI (1).

This was made known in a Town Hall meeting organized by the Delta State Micro Small and Medium Enterprises Development Agency (DEMSMA) in Asaba.

Declaring the meeting open, the State Commissioner for Economic Planning, Dr. Barry Gbe intimated the financial institutions that the Delta Cares package known as Credit Loan was a win-win for them and urged the Financial Heads to take the programme seriously.

Dr Gbe who is also the State Chairman Steering Committee (SCSC) noted that financial institutions have always had problems of business loans being refunded, pointing out that Delta Cares would pay 40% of every loan owed by SMEs in the state.

The State Cares Co-odinator, Lady Patience Ogbewe in her overview of Delta Cares Programme, explained that the Delta COVID-19 Action Recovery Economic Stimulus (Delta Cares) was an branch off of NG- Cares Programme.

Lady Ogbewe said it is a World Bank Assisted emergency intervention aimed at supporting state governments in responding to the Covid-19 Crisis, security of poor and vulnerable households and recovery of the Micro Small and Medium Enterprises (MSMEs) that have been negatively impacted by the Covid-19 pandemic.

She emphasized that the area of focus for the meeting was on the Loan of Result Area 3, where grants would be given to support Micro and Small Enterprises ( MSEs) to support new loans originated after June 16, 2020.

The Cares Co-odinator, also noted that Result Area3 under DEMSMA, is to facilitate the recovery and enhancing capabilities of MSEs supporting government programme that allows MSEs to resume activities that may have been hampered since the start of COVID-19.
On his part, the Directior of Delta State Micro Small and Medium Enterprises Development Agency (DEMSMA), Mr. Abel Ageh, recalled that the State Government was the first to flag off the Cares Programme in Nigeria, with the disbursement of operational grants to 1,818 SMEs through the Bank of Industry, (BOI) to enhance the capabilities of small businesses.

Mr Ageh said, in furtherance of government’s determination to reposition SMEs, government through Delta Cares Result Area 3 of the Cares Programme has concluded plans to upscale the fortunes of SMEs in the state with a view to growing their businesses and ultimately becoming employers of labour .

Commending the state government, Mr. Abel Ageh announced that Governor Ifeanyi Okowa has approved funds for the implementation of Result Area3 DLI 3:1 known as Credit Grant, where government will pay 40% as Grant for loans collected from Central Bank of Nigeria (CBN) accredited financial institutions with documented evidence.

The DEMSMA Director, enumerated the roles of the Bank Executives to include strict adherence to the eligibility criteria as stipulated by the World Bank.

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