SMEs can now apply for financing of up to RM$500,000: Malaysia’s central bank
Eligible SMEs can now apply for working capital financing of up to RM$500,000 (US$122,624) for a tenure of up to 7 years, which includes a repayment moratorium of at least 6 months, announced Malaysia’s central bank.
The facility is offered at a concessionary rate of up to 3.5% per annum and is available through 21 participating financial institutions, it said.
Called the Targeted Relief and Recovery Facility (TRRF), it is part of the government’s targeted move to provide relief to and support the recovery of SMEs affected by the impact of COVID-19.
SMEs in targeted vulnerable sectors would be eligible to apply, such as those in personal services, food and beverage services, human health and social work, arts, entertainment and recreation subsectors.
The TRRF is available to be applied until December 31, 2021 or until full utilisation of the total allocation of RM$2 billion (US$490.62 million), whichever is earlier, said the central bank.
The central bank has also enhanced another of its financing assistance for microenterprises, increasing the total allocation for the fund from RM$300 million (US$73.59 million) to RM$410 million (US$100.58 million). This would apply for firms that have a sales turnover of less than RM$300,000, or employees fewer than five.
Called the Micro Enterprises Facility (MEF), it aims to support microenterprises including gig workers on digital platforms and the self-employed in their working capital and capital expenditure.
Under the MEF, such businesses will be able to obtain financing of up to RM50,000 (US$12,265) for a tenure of up to five years, at a financing rate which will be determined by the respective financial institution, if approved.