SECP (Small Enterprises Credit Program) was supported by Norway from January 2002 to June 2008. Ministry of Finance was executing agency, and Rajshahi Krishi Unnayan Bank (RAKUB) was the implementing agency of the project. Norway provided around 27 million NOK for implementation of the programme. Around 31% of the Norwegian grant was spent to meet all operational costs, and the rest 69% was used as revolving loan fund. RAKUB participated in the revolving loan fund with equal share. After completion of the project period in June 2008, the program has been operating on its own. RAKUB is now in the process of establishing a subsidiary company to be owned by RAKUB itself to continue the project activities, i.e. providing support to small and micro enterprises in the project area.
The aim of the program is to give loan to small enterprises, either as initiate new enterprises, or expansion of already existing enterprises. The goal is to decrease the poverty through support to non-farm enterprises, which further will create job opportunities in the community. This will contribute to economic development in the poverty stricken north-western Bangladesh, and also have positive effect on the country’s economy. Basic knowledge and skills of business and entrepreneurship development training is provided along with the financial loans. With 28 percent female participation the goal has been reached with good margins, but there is room for more female participation to equalize the gender balance. Entrepreneurs have been granted collateral security free loans up to 50,000 taka. Per June 2009, 18,793 entrepreneurs have received support for their enterprises, which further has employed 34,621 persons.
The delegation from the embassy visited several of the small enterprises in Bogra and Rajshahi working on production and sale of egg, milk, mosquito nets, cartons and fish production among other things. They were introduced to the background and activities of the enterprises. Many of the entrepreneurs have been highly successful in their activity, and have created many jobs for the employees. The delegation also visited SECPs district office in Bogra, and RAKUBs office in Rajshahi where they met several of those engaged in the program. The program has proved to be sustainable after Norway ended the support, and they have the possibility to further provide loans to new and old enterprises.