Providing SME support in times of need

Open lines: Small businesses can reach out to CGC for available financing products and assistance.

THE biggest challenge that micro, small and medium enterprises (MSMEs) currently face is undeniably monetary in nature, with the majority of them struggling to manage costs with little to no incoming revenue.

As part of its role in providing financial assistance for SMEs, Credit Guarantee Corporation Malaysia Bhd (CGC) is committed towards supporting them through the ongoing Covid-19 pandemic and the movement control order.

After Bank Negara Malaysia’s (BNM) announcement on the Special Relief Facility on Feb 27, CGC also made available its BizJamin/-i SRF guarantee schemes from March 6 to Dec 31 this year.

Under the facility, CGC provides 80% guarantee cover for participating financial institutions (PFIs), namely development financial institutions, commercial as well as Islamic banks.

Interested SMEs will need to contact the PFIs, or visit the business financing referral platform imSME, to apply for the SRF financing facility, which offers up to RM1mil loan/financing with a maximum interest/profit rate of 3.5% per annum.

Moreover, following Prime Minister Tan Sri Muhyiddin Yassin’s unveiling of the Additional Prihatin SME Economic Stimulus Package (Prihatin SME+) on Apr 6, imSME – in collaboration with BNM – is accepting SME applications for the SRF and is providing access to financing from more than 20 PFIs.

Got your back: CGC is committed towards supporting SMEs through the ongoing crisis.

This means that apart from directly applying for financing from banks, SMEs can also apply through the imSME portal. Unsuccessful SMEs can contact MyKNP@CGC – established by BNM in collaboration with GGC and the Credit Counselling and Debt Management Agency – to obtain advisory service to improve their eligibility for future financing.

In line with BNM’s March 25 regulatory and supervisory measures, it has automatically enrolled its existing financing customers in a six-month automatic moratorium to defer all repayments – as well as enabling restructuring – for SME financing facilities in order to ease the cash flow concerns of impacted companies.

That said, the moratorium is only applicable to performing financing accounts that are not in arrears for more than 90 days as of Apr 1.

As for other programmes for SMEs offered by CGC, existing financing customers affected by disasters such as the Covid-19 pandemic can leverage the BizBina-i, which avails financing between RM20,000 to RM200,000 at 3.5% per annum, for a period of 5.5 years inclusive of the six-month moratorium.

SMEs can also tap into the BizMula-i and BizWanita-i direct financing schemes for financing of up to RM300,000, which utilise BNM’s Fund for SMEs in All Economic Sectors (AES) Facility.

BizMula-i, which caters for businesses that have operated for less than four years such as start-ups, is meant for working capital and/or asset acquisition, including the purchase of machinery and equipment as well as business premises renovation.

Meanwhile, BizWanita-i operates on the same premise, but is targeted specifically towards women entrepreneurs.

As CGC has no appointed third-party representation to act on its behalf with regards to its products and services, SMEs with any doubts should contact the CGC Client Service Centre through chat with the imDigitalSME Digital Assistant at imsme.com.my, email [e-mail] or 03-7880 0088.

To apply for financing facilities, SMEs can either visit the websites of PFIs, or visit imSME.com.my.