KUALA LUMPUR (April 21): SME Bank launched a Small Business Financing (SBF) programme with a fund allocation of RM100 million to eligible Bumiputera-majority, matured microenterprises who want to upscale their operation.

The SBF will help entrepreneurs who aspire to move up the value chain and attain the small business category under the SME definition, the bank said in a statement today.

“SBF offers working capital for them to increase product marketability and enhance their business operations.

“As at March 31, 2016, SME Bank has approved a total of RM3.8 million under this program to eleven eligible micro enterprises,” SME Bank said.

To be eligible for SBF, an applicant who is categorized as a microenterprise company must be the business operator, and the company must be registered under the Companies Commission of Malaysia Act 2002 or Co-operative Act 1993, it said.

In addition, the company must have a minimum of 51% Bumiputera equity ownership with good credit records. The business must also be in operation for at least two years, with a profitable account for the recent year and a minimum turnover of RM250,000 in annual sales, it added.

SME Bank also noted that the SBF, a Shariah compliant product, has a financing tenure of between five to seven years, with a profit rate of 7.5% per annum. The minimum financing for SBF is RM100,000 and the maximum is RM750,000.

The programme was launched by the Minister of International Trade and Industry (MITI), Datuk Seri Mustapa Mohamed, during the Majlis Perhimpunan Bulanan MITI which was held on April 19, 2016, at the Auditorium of Menara SME Bank.

The event was also attended by MITI’s ministers and senior officials, Senior Management of SME Bank, and other heads of MITI agencies.

SME Bank, which has been in operation for 10 years, is designed to function ultimately as a one-stop financing and business development centre and is dedicated to the accelerated growth of Malaysian SMEs.