So many people have been asking me this question – is YouWIN! grant award free?
The answer to this question is resounding YES! The Youth Enterprise with Innovation in Nigeria grant award is absolutely free. You won’t pay back. It is not a loan.
If you are given the award, there are conditions to be made to get the full grant. The award is in 4 tranches. The first tranche is 10% of your maximum award amount. The 2nd tranche is 56%, 3rd tranche is 17% and the 4th tranche is 17% as well.
For example, if you maximum award ceiling is N10m, you would get 10% first which is N1m. The 2nd tranche would be 56% which is N5,600,000 while the 3rd and the 4th tranche would be 17% each which is N1,700,000 for each.
Please note that this varies at times. If you are into agriculture and you are a new business, you may be given 2nd tranche first which is 56% to enable you get started without hindrance.
The reason for the payment of fund in tranches is to ensure that every awardee meet a target before they can access the fund to award mismanagement. Some awardees might want to abscond with the fund. Some may be lazy. Proper monitoring is put in place by YouWIN to ensure that everything work out fine.
Your first tranche is free of any target as it is just 10%. This is to enable you to put some stuff in place like business registration, license and fee for your operation. The 2nd is also free of any target. However, you would be required to show evidences that your first tranche was spent judiciously before you can access your 2nd tranche. You must provide receipt and invoice to show that the fund was properly utilized.
For you to receive your third tranche, you must show evidence that your 2nd tranche was properly utilized for the business. At this point you are required to employ some staff and generate revenue and also meet the target given to you by YouWIN.
The same thing applied to 4th tranche. You must meet certain conditions before you can access the 4th tranche. Sometimes some conditions are waved depending on how serious you are and what you monitors are saying.
You would be monitored by SMEDAN, BOI and School for Startups.
Watch out for my tutorial on how to answer YouWIN 2nd round questions effectively. I will take time to provide comprehensive tutorial on this.