The Payroll support component of the MSME Survival Fund was launched yesterday however people are not yet fully aware of the details of this fund as well as the requirements needed to access it.
The intervention is aimed at cushioning the impact of the COVID-19 pandemic with a view to boosting the economy by saving existing jobs and creating new job opportunities.
The size of the fund
According to estimates provided by the Federal Government, the sum of 50 billion naira will be used to provide payroll support. The Vice President Yemi Osinbajo, who also heads the Economic Sustainability Committee, announced it at the 2020 edition of the Micro MSMEs Awards held virtually in July.
How much can you get?
The Payroll support scheme is expected to assist about 500,000 vulnerable MSMEs in meeting payroll obligations of between N30,000 to N50,000 per employee over three months.
The committee will identify eligible MSMEs, screening and verification for this fund will be based on company registration and tax registration. The implementation committee will approve disbursements through microfinance banks and fin-tech credit providers.
MSMEs that are unregistered will receive support to complete registration with the Corporate Affairs Commission (CAC), and all participants will be expected to make payments based on signed agreements.
The Bank of Industry will also join to coordinate the implementation of the scheme.
Who is it targeted to?
The federal government has stipulated that the scheme is for businesses in the educational and hospitality sectors, as well as other small businesses that meet the requirements.
The Survival Fund payroll support Registration portal will open on Monday, 21 September 2020 at 10 PM, and will have educational institutions as the first category of beneficiaries to register.
Businesses in the hospitality industry will have access on Friday 25 September 2020 from 12 A.M., while, other categories of small businesses will be able to register from 12 A.M., on Monday, September 28, 2020.
- Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission, CAC
- Must have BVN by company CEO
- Must have a staff strength of no less than three persons
- Must be owned by a Nigerian
MSMEs that have between three to 50 staffs are qualified for this fund. The businesses must make their payroll available to the government for verification while applying for the fund. Once qualified, the MSMEs will be eligible to have their staff salary paid directly from the fund for three months.