Applications are now open for the Lagos State Government’s N10 billion ($20 million) COVID-19 Action Recovery and Economic Stimulus programme. The “Lagos CARES” initiative is targeted at supporting vulnerable households and businesses disrupted by the impacts of COVID-19.
Lagos State Governor, Babajide Sanwo-Olu says the program will directly support 20,843 households and at least 2,512 micro, small and medium enterprises (MSMEs) within the state.
MSMEs can apply for up to N5 million in grants under the Lagos Cares scheme. As part of the program, MSMEs can apply for grants in any of three categories – Credit grant, Operations grant and IT grant.
The Credit grant ranges between N100,000 to N5 million and will co-finance up to 40% of new loans given to businesses by qualified financial institutions post-COVID-19.
For the Operations grant, between N150,000 to N5 million will be awarded to cover up to 50% MSMEs’ operational costs including staff salaries and documented utilities as well as assist them in reaching pre-COVID 19 levels of employment.
The IT grant will cater to the IT infrastructure of qualified businesses, with an amount of between N200,000 to N5 million.
To be considered eligible for the program, individual applicants must be aged at least 18 years, reside in Lagos and provide proof that their means of livelihood has been adversely impacted by the pandemic.
For MSMEs, they must be duly registered with the corporate affairs commission (CAC), provide evidence of existing business operation and proof of existing loans from qualified financial institutions.
Businesses must also give valid company bank verification number (BVN), tax identification number (TIN) and Lagos State Residents Registration Agency (LASRRA) ID. Small and medium-sized enterprises are required to upload staff PAYE receipts for the past 3 months as well as staff PAYE receipts as of Dec 2019 with the payments schedule.
How to apply
All applications for the Lagos CARES grant should be made through the Lagos State Employment Trust Fund (LSETF) portal. Select grants, sign up to the portal using a valid email address and a unique password then log in.
Step 1: Enter Personal Information
After you log in, select the grant category you’re applying for – Credit, Operations or IT grant. Then proceed to enter your personal details such as your full name, date of birth, local government area and residential address.
Also provide your BVN, personal TIN, LASRRA ID and a government-approved ID number.
Step 2: Fill in Business Information
Here, input required information about your business including category (sole proprietorship, partnership, Charity or LLC), registered company name, CAC number, TIN and business sector.
Make sure to give a brief overview of your business, describe three of your biggest challenges since the outbreak of Covid-19 and briefly explain how accessing this grant will impact your business.
Step 3: Provide financial details
At this stage, fill in all necessary financial information. This includes your average monthly turnover, expenses, savings, existing indebtedness and projected average earnings if your application to join the program is granted.
Step 4 & 5: Upload documents and submit
Fill in other information such as if your business has benefitted from any government intervention or funds in the past. Also upload all required application documents including passport ID, TIN certificate and CAC certificate.
Accept terms and click “Submit” to finish your application.
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