Having just announced the financial aid to assist small medium industry, micro entrepreneurs under the financial assist as mentioned by the Finance Ministry, many who have been waiting for clarity will no longer need to do so. Bank Negara Malaysia has elaborated on the new and enhanced financing facilities for the small and medium enterprises (SMEs) with the Targeted Relief and Recovery Facility (TRRF) and the Micro Enterprises Facility (MEF), 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 cent per annum and is available through 21 participating financial institutions (PFIs), with guarantee coverage by Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP). The RM2 billion facility will be available until Dec 31, 2021 or until its fully utilised, whichever comes earlier.
As for MEF, BNM 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 said that the MEF has been increased from RM300 million to RM410 million, with an available balance of RM200 million.
Eligible micro enterprises can obtain financing of up to RM50,000 for working capital and capital expenditure purposes, the financing rate will be determined by the PFIs, adding that PFIs can also seek guarantee coverage from CGC or SJPP for this facility.
For company’s looking forward for details on the High Tech Facility (HTF), there will just have to hang in there as this will be announced on Dec 15, 2020.