How to Apply Youth Entrepreneurship Support Programme (YES-P) Loan Program 2023

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How to Apply Youth Entrepreneurship Support Programme (YES-P) Loan Program 2023

YOUTH ENTREPRENEURSHIP SUPPORT PROGRAMME (YES-P)

The Youth Entrepreneurship Support (YES) Programme is BOI’s effort at addressing the worrisome phenomenon of youth unemployment in Nigeria by building the capacity of the youths and funding their business ideas. 

The YES programme is aimed at equipping young people with the requisite skills and knowledge to be self-employed by starting and managing their businesses.

The programme comprises of the following components:

8. weeks of extensive online Entrepreneurship and Business Management training which can test participants’ understanding and track their progress.

5. days of in-class Entrepreneurship and Business Management training covering the following five (5) modules:

• The business idea (value proposition and competition analysis)
• Business model (how will the business make money)
• Sales and marketing
• Running a successful business (ethics, compliance, operations, etc.)
• Financial planning

Financing of the businesses by BOI under its SME Cluster initiative.

Eligibility Criteria

The choice of projects to be eligible for the scheme includes the following:

1. Projects in any of the 40 identified SME product clusters.
2. Projects with unique and innovative products/ideas.
3. Value-adding projects that fall within the scope of Small Enterprises excluding trading activities.
4. Projects whose promoters have participated in the capacity building aspect of the YES-Programme.
5. Project ideas developed by the National Youth Service Corps members and recommended by the NYSC Directorate.

Loan Requirements

1. Debenture over the assets of the company or specific charge over the equipment (present and future).
2. Deposit of original NYSC certificate and higher educational certificate (Ordinary National Diploma, Higher National Diploma or University Degree) with BOI. This will be subject to the certificate being certified by Background Check International (BCI).
3. Acceptable alternatives to Degree/HND certificates: Final Statement of Results, Success Letter, Testimonial or other verifiable evidence of course completion.
4. Two (2) external guarantors acceptable to BOI who must belong to any of the following categories:
5.  Senior Civil Servant (Level 7 and above).
6. Bankers (not below the level of Banking Officer), and must have been confirmed by current employer.
7. Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.
8. Senior Staff of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers) etc.
9. Elected public servants/administrators.
10. Reputable entrepreneurs with ongoing entities and registered business names.
11. Clergymen.

The guarantees must be supported by a Notarized Statement of Net worth acceptable to BOI.

Note: For established borrowers requesting an expansion, security requirement, Deposit of original NYSC certificate, higher educational certificate, or any alternative could be waived.

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

Click to view or download checklist

Features

Single Obligor Limit: ₦5 million

Tenor: 3-5 years

Moratorium: 12 months

Pricing/Charges: Interest Rate: 9% p.a., Processing Fee: 1% (one off), Legal Fee: Statutory Fees: Payable to Government Agencies (Stamp Duties, Registration Fees, CAC Filing fees, etc.) - These fees are dependent on the security arrangement, loan value and location of security, Professional legal fees: Dependent on loan value.

For Apply Or Need More Information Visit BOI Website Now: BOI OFFICIAL WEBSITE