How to Access the LASG-BOI Matched Fund (LASMECO): A Step-by-Step Guide for Entrepreneurs

Are you a Lagos-based entrepreneur seeking affordable funding to scale your business? The LASG-BOI Matched Fund (LASMECO) offers a unique financing opportunity through a partnership between the Lagos State Government (LASG) and the Bank of Industry (BOI). Here’s a simplified, step-by-step guide to help you successfully navigate the application process:

1. Apply Through a Sector-Specific Accelerator Programme (AP)

Your journey begins by applying through an Accelerator Programme (AP) relevant to your business sector—such as Agriculture, Health, or the Digital Economy.

• The Ministry of Commerce, Cooperatives, Trade and Investment (MCCTI) will release a list of approved APs.
• Submit your business details, cooperative membership status, and supporting documents through your chosen AP.

2. Attend Capacity Building Sessions

Once accepted:

• You’ll receive training on business planning, financial management, and loan application readiness.
• With support from the AP, you’ll refine your business plan and develop a solid loan proposal.

3. Business Shortlisting by the AP

After training, the AP will:

• Assess your business for viability and growth potential.
• Shortlist qualifying businesses and forward their loan proposals (with full documentation) to the next stage.

4. Validate Cooperative Membership

To qualify for the loan, cooperative membership is required.

• The Directorate of Cooperatives (MCCTI) will verify your status.
• If not a member yet, you’ll be directed to join an appropriate cooperative.
• Your cooperative provides a 25% guarantee and issues a letter of support for your loan.

5. Due Diligence by Sterling Bank

Your application is then reviewed by Sterling Bank, which conducts:

• KYC (Know Your Customer) checks
• Creditworthiness and cash flow assessments
• Verification of your 10% cash collateral and submitted documents

If successful, your application moves on to BOI for final evaluation.

6. Final Review by the Bank of Industry (BOI)

At this stage:

• BOI reviews your application based on development finance standards.
• Once approved, BOI authorizes Sterling Bank to disburse the loan.

7. Loan Disbursement

Before disbursement:

• Open an account with Sterling Bank.
• Deposit your 10% collateral.
• Sign the loan and cooperative guarantee agreements.
• Obtain any required insurance.

Disbursement Breakdown:

• Equipment funds go directly to approved vendors.
• Working capital is transferred to your Sterling Bank account.

Fees deducted from your loan:

• AP Support Fee: ₦200,000
• BOI Appraisal Fee: 1% of loan amount

8. Loan Repayment and Monitoring

After a grace period (moratorium):

• Loan repayments begin via direct debit.
• Your AP and cooperative will monitor your progress and provide ongoing support.
• Sterling Bank and BOI will track your financial performance.

9. Completion or Default

Upon successful repayment:

• Your 10% collateral is refunded.
• Guarantees from your cooperative and Sterling Bank are released.
• You may qualify for larger future loans.

In case of default:

• Your collateral and cooperative guarantee may be used to recover the loan.
• Recovery actions may include asset seizure or Global Standing Instruction (GSI) to recover funds from your accounts.

Final Thoughts

The LASMECO fund is a fantastic opportunity for SMEs in Lagos to access affordable credit with structured support. By following this guide and engaging actively with your AP and cooperative, you’ll increase your chances of securing funding and building a sustainable business.