SMEDAN Registration: Step-by-step Guide on How to Register your Business -2023
What is SMEDAN?
Now is the time to join SMEDAN and have your business backed by the government. SMEDAN stands for Small and Medium Enterprises Development Agency.
Smedan gives you access to government and private-sector benefits to help you grow your business.
It offers financial services in the form of grants from governmental and commercial organizations and insurance, allowing you to take advantage of private-sector advantages such as professional training and educational material, consultants, private investment possibilities, and more. Conditional grants are one of the various benefits available.
Do you want to apply for a loan on SMEDAN, register with the link and follow the steps below.
How to Register for Smedan and Get your Certificate?
Step 1: Visit Smedan and complete the registration form by filling in the following information.
- The name of the company
- Email address
STEP 2: Business Data
In step 2, some of the details are pre-populated based on previously entered data; however, you must fill in the remaining information.
- Business Contact
- Year your business was founded
- Business Address
- State & LGA.
- Location for a business. (Farm, home, mall, market, online/WhatsApp, owned, leased, stall, street kiosk/stall, no permanent site)
- Type of Company ( Limited Liability, Other, Partnership, Sale Proprietorship)
- The product or service you render
- Are you a member of the Cooperation Affairs Commission (CAC)? (Is it true or false?)
- Business category based on yearly revenue (Less than N3M, Less than N25M, Less than N100M, Less than N1B)
- Employment Category (1-2, 3-9, 10-49, 50-199)
Step 3: The Business Owner
In step 3, you’ll need to fill out the following forms:
- Name in full
- Email address
You may add another partner on the red link with the + symbol if you have one.
Step 4: Provide a Brief Description of your Company
This is where you define your company and the services to consumers. The following is a list of forms to complete in this step:
- Business Sector ( Trading, Manufacturing, General services, specialized, agriculture.)
- A specific field of business
- Description of the company
After filling out the following information, read the agreement statement and consent by checking the box at the bottom. After that, press the “Submit” button.
How to Get your SMEDAN Certificate?
After filling in your details, your SMEDAN certificate will be sent to your email. Ensure you fill in your email address correctly.
How to Get a SMEDAN Loan?
SMEDAN offers two options for applying for a loan. To begin, apply to one of SMEDAN’s training programs. Second, you may use SMEDAN’s online credit information before applying for a commercial bank loan.
Applying through SMEDAN
You can apply or register to be part of one of several SMEDAN-sponsored initiatives to get a loan. These programs typically involve being trained on one or more aspects of the business.
Registration can involve visiting a SMEDAN office near you, and you would complete an application form and may subsequently be invited to a course or training program. SMEDAN also has a new MSME registration portal, where you can register online.
Upon satisfactory completion of a course, some programs involve either getting a conditional grant to start or expand your business or being given a soft loan. These soft loans usually come with lower interest rates and often require no collateral.
Whether you are given a grant or loan, you would usually be required to have a registered business already or be encouraged to register (as part of the program). The Corporate Affairs Commission (CAC) is in charge of registering businesses in Nigeria.
Depending on the type of business, you may also need to register with the Standards Organization of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC). A business plan would also need to be produced — detailing how and what you will use the money for.
SMEDAN’s Credit Information Portal
SMEDAN provides a Credit Information Portal that might help people looking for a commercial bank loan. This site is essentially a directory of loan facilities that may be offered to MSMEs in Nigeria.
This website can all provide basic information regarding lenders, how much you may borrow, loan payback terms, and interest rates. Besides a business loan, there are three more credit choices: personal loans, home loans, and credit cards.
Consider the SMEDAN credit portal to be more of a source of credit information than a way to apply for a loan. The site offers a search option that matches you with suitable lenders depending on the information you submit. However, you will not be able to apply for a loan right away via this internet platform; instead, you’ll need to apply directly to the financial institution.
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Checklist for Loan Applications
Before a loan through SMEDAN (or a commercial bank) gets accepted, a checklist of what is necessary might include:
- The application form filled out completely
- A business strategy
- Certificate of Incorporation
- Cash Flow Budget
- Reliable Identification methods (driving license, passport, voters card)
- Proof of residence and the collateral that is being given
Loan Requirements for SMEDAN
The criteria for a SMEDAN loan aren’t set in stone, and it depends on the funding partner or the goal the agency hopes to accomplish by distributing such money.
If SMEDAN views agriculture as a crucial sector, it may decide to implement an intervention program to give loans to agricultural enterprises. In this scenario, a condition for the loan may be that the firm is in the agriculture industry.
Similarly, if it believes that other enterprises, such as those in the creative sector or manufacturing, are significant, it might establish a financing program for these businesses. Of course, each will have its own set of restrictions and eligibility criteria. However, having a SMEDAN number is necessary for all enterprises seeking SMEDAN financing.
Funding and Types of Loans Available Through SMEDAN
In general, SMEDAN does not issue loans to enterprises directly. Instead, SMEDAN serves as a middleman, connecting qualified MSMEs with appropriate credit sources.
SMEDAN collaborates with other government agencies to provide financing to small enterprises, including the Bank of Industry (BOI) and the Central Bank of Nigeria (CBN). SMEDAN, on the other hand, focuses on entrepreneurship training and company growth, with loan disbursement handled by other institutions like BOA, BOI, CBN, and others.
In addition to public-sector loans, SMEDAN may help small firms get finance from the private sector. Commercial banks, finance companies, and microfinance banks, for example.
Benefit of SMEDAN
- Tools for faster growth for businesses
- Access to loans after approval
- Helps medium-scale business to grow faster
- Start enjoying these benefits after approval
- businesses and business owners
- Help grow your small business
- Created to help small businesses grow
Frequently Asked Questions about SMEDAN
1. How can I check my SMEDAN certificate?
To access your certificate, log in using your email address (the one you provided on the registration form) and password. You will get an email confirming your registration and including your SMEDAN Unique Identification Number.
2. What is the difference between SMEDAN and CAC?
The only function of the CAC in Nigeria is to administer the Act, which includes the regulation and supervision of company creation, incorporation, management, and winding up. At the same time, SMEDAN provides firms with access to commercial insurance and loans.
3. Does SMEDAN give grants?
Yes, conditional funding is available from SMEDAN. These grants are given out as part of SMEDAN’s activities from time to time.
4. How long do I have to pay back the SMEDAN loan?
The length of the payback period is determined by the program and credit facility used. Any loans obtained via SMEDAN are expected to be soft loans with advantageous repayment conditions.
5. What is the Meaning of SMEDAN?
Small and Medium Enterprises Development Agency of Nigeria
Click to Register your business with SMEDAN