NBSSI launches credit scheme for small businesses

The National Board for Small Scale Industries (NBSSI) is to revive its credit scheme with a 10-million-Ghana-Cedi facility from the Export Trade, Agriculture and Industrial Development Fund (EDAIF).

The facility which will be released to the NBSSI in trunches, will be used to support Medium and Small Enterprises (MSEs) which have registered with the Registrar General's Department, Credit Unions and the NBSSI, and also engaged in agro-processing which has the potential for exports.

The funds which will allow the beneficiary MSEs to pay as low as 12.5 per cent interest per annum is targeting to support over 1,000 MSEs across the country which also regularly fulfil their tax obligations.

Beneficiaries who apply for a working capital will have a 25 months period to pay back, whiles those who apply for assets capital have 37 months time period which both includes a month moratorium.

Mr Abdul-Rahim Lukman, Executive Director of the NBSSI who disclosed this to the Ghana News Agency in an interview in Accra on Tuesday said three million Ghana Cedis out of the 10 million, had already been approved by EDAIF for disbursement, and that 1.5million of the 3million Ghana Cedis, has been released to the NBSSI.

He said the other 1.5million cedis will be released to the NBSSI after the disbursement of the first one to beneficiary MSEs.

Mr Lukman said proposals of applicants would be reviewed by the Investment and Credit Department of the NBSSI, and then referred to the NBSSI Management Committee and finally the National Loans Committee of the Board.

He said the facility will create unique opportunity for small businesses, especially those in agro-processing, to improve the capital base of their businesses, in order for them to achieve their goals.

Mr Lukman noted that lack of entrepreneurial knowledge, poor record keeping and limited access to credit and technology are major challenges that inhibit the growth and development of small businesses in Ghana.

NBSSI as the apex Government body responsible for the promotion and development of small businesses will use this particular scheme to address the challenges enumerated above.

He urged applicants to be transparent in providing right and accurate information of their businesses for easy assessment and facilitation of their applications to save time.

Mr Lukman therefore directed all small businesses to contact NBSSI District Offices called the Business Advisory Canters (BACs) for further information and assistance.