RM2b more for guarantee scheme


  • Business
  • Saturday, 26 Sep 2009

KUALA LUMPUR: The Government has topped up the Working Capital Guarantee Scheme (WCGS) by RM2bil due to overwhelming public response to the scheme.

In a statement yesterday, the International Trade and Industry Ministry said the scheme would be administered by SME Bank.

The allocation is done through relocation of funds from the Industry Restructuring Loan Guarantee Scheme (IRLGS).

Under the second economic stimulus package, the Government has allocated RM10bil for the guarantee schemes to encourage bank lending, particularly to small and medium enterprises (SMEs).

The WCGS enables Malaysian companies from all economic sectors to obtain loans ranging from RM50,000 to RM10mil for their working capital with a guarantee from the Government for up to 80% of the loan.

The facility is available to companies with equity holding of less then RM20mil. As at Sept 16, a total of RM130mil involving 51 applicants had been disbursed under the WCGS and RM63.4mil disbursed to 11 applicants under IRLGS.

SMEs interested in the schemes can contact SME Banks for further details.

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