SMEs can now apply for working capital assistance of up to RM500,000, says BNM

SMEs can now apply for working capital assistance of up to RM500,000, says BNM
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KUALA LUMPUR (Dec 1): Eligible small and medium-sized enterprises (SMEs) can apply for financing for working capital purposes of up to RM500,000 for a tenure of up to seven years including a repayment moratorium of at least six months, said Bank Negara Malaysia (BNM).  

This, the central bank said, will be under the Targeted Relief and Recovery Facility (TRRF) which is aimed at assisting eligible SMEs in the services sector, whose revenues have been affected by the recent enhanced and conditional movement control orders. 

The facility is offered at a rate of up to 3.5% per annum and is available through 21 participating financial institutions (PFIs), with guarantee coverage by Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).

BNM said in a statement today that the TRRF is available to be applied until Dec 31, 2021 or until full utilisation of the total allocation of RM2 billion, whichever is earlier.  

The statement was issued to provide further information on the implementation of the TRRF and the Micro Enterprises Facility (MEF), which were mentioned in Budget 2021. 

For the MEF, BNM said the fund has been enhanced to improve access to credit for micro enterprises, to include self-employed individuals, gig workers on digital platforms and participants of the iTEKAD programme.  

Under this facility, eligible micro enterprises can obtain financing for working capital and capital expenditure purposes of up to RM50,000. The total allocation for this fund has been previously announced to be increased by RM110 million — from RM300 million to RM410 million.  

BNM said the financing rate will be determined by the PFIs, whereby the institutions can also seek guarantee coverage from CGC or SJPP for this facility. 

"Interested SMEs can apply directly to PFIs for the TRRF, which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM via their websites or by visiting the PFIs’ branches. For the MEF, interested micro enterprises can apply directly to PFIs under the Skim Pembiayaan Mikro," it said.  

Following the tabling of Budget 2021 on Nov 6, BNM announced it will establish additional financing facilities to provide relief and support to affected SMEs.  

Besides TRRF and MEF, BNM also established the High Tech Facility (HTF) details, of which will be announced on Dec 15. 

Further details on the features of the facilities including the list of participating PFIs, can be obtained online at www.bnm.gov.my/covid19/.

S Kanagaraju