COVID-19: RM4.5 billion fund to help small, medium enterprises and micro entrepreneurs

In presenting the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) today, the Prime Minister said the allocation would be channelled through five key initiatives.

The first step, he said, is a RM3 billion addition of the Special Relief Facility fund, bringing the total to RM5 billion.

"The interest rate for this whole fund will be reduced from 3.75 per cent to 3.5 per cent," he said.

The second step, said the Prime Minister, is to increase the size of the funds by RM1 billion to RM6.8 billion under the All Economic Sectors Facility to enhance financing access to SMEs.

The third step announced by Muhyiddin is the provision of additional funds of RM500 million under the Micro Credit Scheme, raising the entire sum to RM700 million for easy financing.

“The scheme will be managed by Bank Simpanan Nasional by offering only a 2 per cent interest without collateral. Loan eligibility requirements are also loosened with a minimum of six months operation as compared to one year of operation.

“The financing amount has also been increased from a maximum of RM50,000 to RM75,000 per entrepreneur. This initiative is open to all micro entrepreneurs in all business sectors, including nursery operators, bus and taxi operators, the creative industry and online traders," the prime minister added.

The fourth step, Muhyiddin said, is the BizMula-i and BizWanita-i Credit Guarantee Malaysia Berhad (CGC) scheme for financing of up to RM300,000. SMEs with business records of less than four years could also benefit.

Lastly, the Business Financing Guarantee Company (SJPP) will provide a loan facility worth RM5 billion as well as increase the guarantee rate from 70 per cent to 80 per cent for SME companies that have trouble getting loans.