SME RE-FINANCING AND RESTRUCTURING FACILITY (RRF)
The SME Refinancing & Restructuring Fund is to Fast-track the development of the manufacturing sector of the Nigerian economy by improving access to credit to manufacturers, improve the financial position of the Deposit Money Banks (DMBs), Increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis.
Eligibility Criteria
- Any entity falling within the definition of an SME and/or manufacturer
- An entity wholly-owned and managed Nigerian private limited company registered under the Companies and Allied Matters Act of 1990
- A legal business operated as a sole proprietorship, be a member of the relevant Organized Private Sector Associations such as MAN, NASME, NACCIMA, NASSI
- Any entity as defined above with an existing facility on the books on a Participating Financial Institution (emphasis will be on facilities that are indicating weakness arising from tenor, structure as well as facing cash flow difficulties)
Initial Documentation Required
- Request from the customer seeking for such refinancing and/or restructuring loan
- Latest financials of the obligor (management accounts will be acceptable in lieu of updated accounts
- Copies of duly executed offer documents between the bank and the loan obligor evidencing existence of a facility
Loan Documentation Required
Customers are required to open an account with the Bank of Industry before application can commence. The documents needed for an account to be opened are listed below. A customer identification number will be created at the end of the account opening process.
An account can be opened by completing an account opening form and submitting all the required documents:
ACCOUNT OPENING REQUIREMENT LIST
- Schedule of the shareholders signed by the company secretary. (Shareholders Register) for new customers and a confirmation of earlier submission for returning customers
- Full Incorporation Documents:
- Photocopy of Certificate of Incorporation
- Certified true copy of Memorandum and Articles of Association
- Forms CAC 2.5 (Allotment of Shares)
- CAC 2.3 (Particulars of Directors)
- CAC 2.1 (Appointment of Company Secretary)
- Means of identification of all Directors of the company (i.e., photocopy of International Passport/Driver’s License and National Identity Card) and BVN of the Executive Directors. (**note that ID of all Directors are needed for compliance and credit search)
The loan application process will begin after the account is opened. A loan application form is required to be completed and all required documents submitted and verified:
LOAN APPLICATION / APPROVAL REQUIREMENT LIST
- Formal Loan Application on Letterhead
- Duly completed Loan Application Form
- Feasibility Study Report on the project to be financed stating write-up on technology and manufacturing process(s), etc.
- Quotation/Proforma Invoice for the supply of items of Machinery and Equipment. Sources and quotations for Raw Materials expressed in quantity and amount
- Security: Bank Guarantee, a letter of intent for Bank Guarantee (with Risk Management being part of the authorized signatories) of the commercial bank issuing the guarantee. Any exception should be supported with the Bank’s approval limits OR
- Legal Mortgage
- Photocopy of the title document(s) to the property being pledged e.g Statutory Certificate of Occupancy/Deed of Assignment/Conveyance/Deed of sublease
- Valuation Report on the Property Proposed as Security from BOI’s accredited value
- Lease agreement, if operating from a rented premises
- A copy of the draft Technical, Management, Machinery Supply and/or Joint Venture Agreement (where applicable)
- Three years’ Audited Financial Accounts and most recent Management Account from a BOI accredited auditors (for an existing business) OR Statement of Affairs (for business less than one (1) year)
- Company’s Bank Statement for a period of one (1) year
- The output of the process is the offer letter
- Two options are proposed for this stage as shown below
- Regulatory approvals e.g NAFDAC certificate, Mining Lease
- Declaration of Outstanding Liabilities to other Institutions and/or Individual
If a loan a loan is approved, the next and that last part of the process is disbursement. Before disbursement can begin, the documents below must be submitted:
LOAN AVAILMENT / DISBURSEMENT REQUIREMENT LIST
To be provided by the customer:
- Submission of Letter of Offer duly endorsed by a Director and Company Secretary or two (2) Directors
- Letter of acceptance of Offer and Letter showing specimen signature of the authorized signatory
- Board Resolution authorizing borrowing
- Return of duly executed Loan Agreement
- Evidence of payment of fees (if applicable – appraisal, commitment and legal fees)
- Letter of Attestation
- Original proforma invoice(s) for the approved item
- Four (4) Passport photographs of the Chief Promoter and a Director
- Evidence of filing of Annual Returns, as well as tax clearance certificate -TCC- for the Company, the Chief Promoter and Directors of the Company. Evidence of payment (eTCC) should be accepted for deferral
- Submission of Bank Guarantee or title documents/other legal documents e.g. Statutory Certificate of Occupancy of the pledged property, ground rent receipts etc.
- Letter of undertaking to pay interest during moratorium
