Delta CARES Program Outlines MSME Loans Disbursement Strategy

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Delta COVID-19 Action Recovery Economic Stimulus (Delta Cares Programme), under the Result Area 3, has mapped out strategies 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, told the financial institutions that the Delta Cares package,also 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 m, Steering Committee (SCSC) noted that financial institutions had always had problems of business loans being refunded, pointing out that Delta Cares would pay 40% of every loan granted SMEs in the state.

The State Cares Co-odinator, Lady Patience Ogbewe, in her overview of the Delta Cares Programme, explained that it was a branch off of NG- Cares Programme.

Lady Ogbewe said it was 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 had been negatively impacted by the Covid-19 pandemic.

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

The Cares Co-odinator, also noted that Result Area 3 under DEMSMA, was to facilitate the recovery and enhancing capabilities of MSEs supporting government programme that allowed MSEs to resume activities that might have been hampered since the start of COVID-19.

On his part, the Director 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 the determination to reposition SMEs, government through Delta Cares Result Area 3 of the Cares Programme had concluded plans to upscale the fortunes of SMEs in the state with a view to growing their businesses and ultimately becoming employers of labour.

While commending the state government for the Program, Ageh announced that Governor Ifeanyi Okowa had approved funds for the implementation of Result Area 3 DLI 3:1, known as Credit Grant, where government would pay 40% as grant for loans collected from the 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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