As a result of the effect of the COVID-19 pandemic and in line with the vision of the Federal Government of Nigeria to lift 100 million Nigerians out of poverty in ten years, the Federal Government of Nigeria, sought and obtained assistance from the World Bank to implement a two-year emergency response programme, named the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES).
The Lagos COVID-19 Action Recovery and Economic Stimulus (CARES) Program is a state-level intervention that seeks to mitigate the local effects of the COVID-19 worldwide pandemic at the state-level, by protecting the livelihoods of existing and newly poor and vulnerable households and supporting the recovery of local economic activity especially among MSMEs.
The program consists of 3 Results Areas (RAs) as defined below:
- RA1 – Focuses on Social Protection
- RA2 – Focuses on Agriculture and;
- RA3 – Focuses on Micro Small and Medium scale enterprises (MSMEs
As the State’s MDA responsible for MSME intervention, LSETF will anchor RA3, which is aimed at providing relief, facilitating the recovery, and enhancing capabilities of local MSMEs through support designed to reduce the vulnerability and cushion the effect of income-loss brought about by the ongoing COVID-19 pandemic and its resultant disruption to regular commercial activity.
Credit Grant This provides credit grants to co-finance up to 40% of performing loans taken by businesses from June 16 2020 till date from qualified financial institutions after the onset of the COVID-19 crisis.
Operations Grant This is a conditional grant to support ongoing operational expenditure. This Grant covers up to 50% of any verifiable/ documented monthly operational cost for 6 months, including but not limited to staff salaries, documented utilities, rent, documented private security expenses, alternative power supply etc.
IT Enhancement Grant The IT Enhancement Grant supports MSEs to increase their capacity through the adoption of technology, and upgrade of Digital Technology, particularly tools that support remote work. It is a non-cash grant which covers IT infrastructure, connectivity, and digital technology tools e.g., Laptops, Internet services, e-Commerce tools, productivity software suites etc.
| Credit Grant | Operations Grant | IT Enhancement Grant |
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Micro Enterprises: Up to ₦ 1Million SMEs: Up to ₦ 1Million
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Nano Enterprises(1-2 employees): Up to ₦ 50,000 Micro Enterprises: Up to ₦ 500,000 SMEs: Up to ₦ 1 Million |
Micro Enterprises: Up to ₦ 400,000 in hardware or software SMEs: Up to ₦ 1.5Million in hardware or software
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REQUIREMENTS MICRO ENTERPRISES
SMES
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REQUIREMENTS MICRO ENTERPRISES
SMES
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REQUIREMENTS MICRO ENTERPRISES
SMES
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NOTE:
- Previous beneficiaries of the Operations Grant can apply for the Credit Grant if they have a performing loan from a licensed microfinance or commercial bank taken between June 16, 2020, and now. Additionally, those who received the Credit Grant can apply for the Operations Grant.
- Documentation submission and status updates at the head office are available from 9 AM to 12 noon, Monday to Friday (excluding public holidays). For more information, call +234 1 7000 945, visit your nearest LGA office, or email lagoscares@lsetf.ng
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