KUALA LUMPUR: Bank Negara has elaborated on the new and enhanced financing facilities for small and medium enterprises (SMEs), namely the Targeted Relief and Recovery Facility (TRRF) and the Micro Enterprises Facility (MEF), as announced in Budget 2021.
In a statement, the central bank said under the TRRF, eligible SMEs which have been adversely affected by Covid-19 can obtain 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.
It said 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 Corp (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
The RM2bil facility, aimed at assisting SMEs in the services sector, is available until Dec 31,2021 or until its fully-utilised, whichever comes earlier, it said.
On the MEF, the central bank said it 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 – a social financing programme that supports micro entrepreneurs from the B40 segment. The central bank also pointed out that the MEF has been increased from RM300mil to RM410mil, with an available balance of RM200mil.
Eligible micro enterprises can obtain financing of up to RM50,000 for working capital and capital expenditure purposes, it said.
Bank Negara said the financing rate would be determined by the PFIs, adding that PFIs can also seek guarantee coverage from CGC or SJPP for this facility.
“Interested SMEs can apply for the TRRF directly from PFIs, which comprise commercial banks, Islamic banks and development financial institutions regulated by Bank Negara 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.
On another note, the central bank said details on the High Tech Facility (HTF) would be announced on Dec 15.
It said the public can contact BNMTELELINK for further information and advice on issues that they may face with their banks by emailing firstname.lastname@example.org or by calling 1-300-88-5465.
Further details on the features of the mentioned facilities are available online at www.bnm.gov.my/covid19/. — Bernama