KUALA LUMPUR: Small and medium enterprises (SMEs) impacted by the fallout from the Covid-19 pandemic will be able to get financial assistance from the Targeted Relief and Recovery Facility (TRRF) and Micro Enterprises Facility (MEF).
Bank Negara Malaysia had on Tuesday provided more details on the implementation of two funds, as announced in the Budget 2021 speech by the Minister of Finance.
It said for the TRRF, the RM2bil was to help eligible SMEs in the services sector. They can obtain financing for working capital purposes of up to RM500,000 for a tenure of up to seven years.
The financial assistance, including a repayment moratorium of at least six months, is at a rate of up to 3.5% per annum.
It is available through 21 participating financial institutions (PFIs), with guarantee coverage by Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
“The facility is now available until Dec 31,2021 or full utilisation (whichever is earlier).
“SMEs that are recipients of the Special Relief Facility (SRF), Penjana Tourism Financing (PTF) and Penjana SME Financing (PSF) are not eligible to apply for TRRF, ” Bank Negara said.
It also pointed out for SMEs in the tourism and tourism-related services subsectors, assistance remains available under the existing PTF.
As for the MEF, its total size was increased from RM300mil to RM410mil, with an available balance of RM200mil.
Bank Negara explained the MEF was 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.
Eligible micro enterprises can obtain financing for working capital and capital expenditure purposes of up to RM50,000. The financing rate will be determined by the PFIs. PFIs can also seek guarantee coverage from CGC or SJPP for this facility.
As for the High Tech Facility, Bank Negara said the details will be announced on Dec 15.
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