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Section 6: Starting a Business
Grants and Funding: MSMEs, Startups and Tech Startups
MSME grants, startup grants, equity funding options
Funding options for businesses:
There are many ways to get money for your business.
Grants (free money):
- Don't need to pay back
- For specific purposes
- Must meet criteria
- Submit proposal
Loans (borrowed money):
- Must pay back with interest
- Banks and government schemes
- Need good credit
Equity (selling shares):
- Sell part of your company
- Investors become partners
- No repayment but share profits
Where to apply:
- SME Corp
- MARA
- TEKUN
- Banks
- Investors
Frequently Asked Questions
What's the difference between grant and loan?
Grants don't need repayment but have strict usage requirements. Loans must be repaid with interest but offer more flexibility.
How much equity should I give investors?
Early stage: 10-25%. Series A: 20-40%. Depends on valuation, amount raised, and negotiation. Don't give away too much too early.
How long does grant approval take?
Varies: SME Corp grants 1-3 months. MARA loans 2-4 weeks. Equity funding 3-6 months (includes due diligence).
Can I apply for multiple funding sources?
Yes, but disclose all applications. Some grants cannot be combined. Equity investors may have exclusivity requirements.
Last updated: March 2026
Disclaimer: This guide provides general information only. Always verify with official sources for the most current information.