Eligible small and medium enterprises (SMEs) can obtain financing for working capital purposes of up to RM500,000 for a tenure of up to seven years under the Targeted Relief and Recovery Facility (TRRF), Bank Negara Malaysia (BNM) said.
The financing also includes a repayment moratorium of at least six months.
The central bank 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).
It is now available until Dec 31, 2021, or full utilisation, whichever is earlier.
The TRRF is an RM2 billion facility that is aimed at assisting eligible SMEs in the services sector.
“SMEs that are recipients of the Special Relief Facility, PENJANA Tourism Financing (PTF) and PENJANA SME Financing are not eligible to apply for TRRF. For SMEs in the tourism and tourism-related services subsectors, assistance remains available under the existing PTF,” BNM said in a statement.
Additionally, BNM also announced that the total size of the Micro Enterprises Facility (MEF) has been increased from RM300 million to RM410 million, with an available balance of RM200 million.
The enhancement was said to improve access to credit for micro-enterprises, to include self-employed individuals, gig workers on digital platforms and participants of the iTEKAD1 programme.
BNM said 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.
BNM said PFIs can also seek guarantee coverage from CGC or SJPP for this facility.
“Interested SMEs can apply directly to PFIs for the TRRF, which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM 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.
BNM also said details of the High Tech Facility will be announced on Dec 15, 2020.
The central bank said members of the public can contact BNMTELELINK for further information and advice on issues that they might face with their banks in this challenging time at bnmtelelink@bnm.gov.my or 1-300-88-5465.
Source: https://themalaysianreserve.com/2020/12/02/eligible-smes-can-get-up-to-rm500000-in-financing-under-targeted-scheme/