BNM RM2 billion SME Assistance Guarantee Scheme

Bank Negara Malaysia wishes to announce the establishment of a RM2 billion SME Assistance Guarantee Scheme to ensure that viable SMEs adversely impacted by the current economic slowdown continue to have access to adequate financing. With the guarantee cover, it is envisaged that access to financing to viable SMEs will be enhanced and at a lower cost.

Eligible SMEs can obtain financing of up to RM500,000 per SME under this Scheme for tenures of up to 5 years. The Credit Guarantee Corporation Berhad (CGC) will provide an 80% guarantee cover for financing approved under this Scheme. The guarantee cover will be provided free of charge and the cost of the guarantee will be fully borne by Bank Negara Malaysia. Financing obtained under this Scheme is for new financing only and must be used for business purposes, such as working capital, project financing and capital expenditure.

This Scheme can be accessed at any commercial and Islamic bank, SME Bank, Agrobank, Bank Rakyat, EXIM Bank and Bank Simpanan Nasional. Participating financial institutions will determine the lending or financing rate to be charged and applications are subject to the normal credit approval process of the participating financial institutions. Applications for this Scheme will be open from 3rd February 2009 till 31st December 2009 or when the financing limit of RM2 billion has been fully utilised.

KEY FEATURES of the SME Assistance Guarantee Scheme (SME AGS)

Guarantee cover provided by CGC
80% guarantee cover on principal and normal interest.
Risk on the remaining 20% will be borne by the participating financial institutions

Guarantee fee
No charges

Interest/financing rate charged
Determined by the participating financial institutions

Source of funds
Participating financial institutions

Purpose of financing
Working capital, Project financing, Capital expenditure
Shall NOT be used to refinance existing credit facilities

Eligibility criteria
SMEs with shareholders funds below RM3 million; and
SMEs that are not affiliates and subsidiaries of GLCs and PLCs; and
SMEs owned by Malaysians (at least 51% shareholding) residing in MalaysiaSMEs adversely impacted by the current economic slowdown.

Maximum financing tenure
5 years.
Aggregate financing of RM500,000 per SME.

Application deadline
Open from 3 rd February till 31 December 2009 or upon approval of financing up to RM2 billion, whichever is earlier. The continuation of the Scheme thereafter will be subject to review.

Participating financial institutions

  • All commercial banks;
  • All Islamic Banks;
  • Agrobank;
  • Bank Rakyat;
  • SME Bank;
  • EXIM Bank; and
  • Bank Simpanan Nasional.

SME Assistance Facility

Introduction
SME Assistance Facility of RM700 million is established by Bank Negara Malaysia (BNM) to assist viable SMEs facing financial difficulties due to temporary cash flow problems arising from rising costs.

Objective
To assist viable SMEs in continuing their business operations, preserving employment and as a pre-emptive measure to help SMEs in servicing and maintaining credit facilities with banking institutions.

Features

Eligibility Criteria

  • Businesses classified as SMEs, as defined by the National SME Development Council;
  • SMEs across all economic sectors;
  • SMEs that are owned by Malaysians residing in Malaysia (at least 51% shareholding);
  • SMEs with shareholders funds not exceeding RM3 million;
  • SMEs that are NOT affiliates or subsidiaries of Government Linked Companies (GLCs) or Public Listed Companies (PLCs);
  • SMEs facing financial difficulties due to the rising costs, including SMEs with NPLs and financing in arrears.

Lending / Financing Rate

  • 4.0% p.a.
  • For Islamic financing, the mark-up price under the Murabahah or Bai’ Bithaman Ajil contract is also fixed at 4.0% per annum

Purpose of Financing

  • Working capital
  • Project financing
  • Shall NOT be used to refinance existing credit facilities

Guarantee Cover

CGC will provide an 80% automatic guarantee cover to the financing obtained (including principal and normal interest)

Maximum Loan Amount

Maximum aggregate financing of RM1.5 million per SME
No minimum amount

Tenure

Maximum of 5 years

Application Dates

Beginning: 1 August 2008
Ending: 31 July 2010

SME Modernisation Facility

Introduction
SME Modernisation Facility of RM500 million is established by Bank Negara Malaysia (BNM) to assist SMEs in modernizing their operations and reduce cost of production.

Objective
To provide financing to SMEs to modernise their operations, in particular to purchase or upgrade machinery and equipment, as well as for energy saving equipment .

Features

Eligibility Criteria

  • Businesses classified as SMEs, as defined by the National SME Development Council.
  • SMEs across all economic sectors;
  • SMEs that are owned by Malaysians residing in Malaysia (at least 51% shareholding);
  • SMEs with shareholders funds not exceeding RM3 million;
  • SMEs that are NOT affiliates or subsidiaries of Government Linked Companies (GLCs) or Public Listed Companies (PLCs);
  • SMEs with at least 3 years in operation.

Lending / Financing Rate

  • 4.0% p.a.
  • For Islamic financing, the mark-up price under the Murabahah or Bai’ Bithaman Ajil contract is also fixed at 4.0% per annum

Type of Financing

Term Loan

Purpose of Financing

  • Purchase and/or upgrade their machinery and equipment
  • Purchase of energy-saving equipment
  • Purchase of 2nd hand or reconditioned equipment
  • Shall NOT be used to refinance existing credit facilities or for working capital

Guarantee Cover

CGC will provide an 80% automatic guarantee cover to the financing obtained (including principal and normal interest)

Maximum Loan Amount

Maximum aggregate financing of RM5 million per SME; or 95% margin of financing, whichever is lower
No minimum amount
Tenure

Maximum of 8 years, inclusive of a principal moratorium period of 6 months
Interest must be serviced during moratorium period

Application Dates

Beginning: 1 August 2008
Ending: 31 July 2010

RM5K – RM100K ROSPER Usahawan Muda scheme (PUNB)

PROSPER Usahawan Muda scheme offers financing between RM5k to RM100k for you to start up your business.

Suitable for:-

Young Bumiputera who are keen to venture into business

What it offers:-

Shari’ah compliant financing products

Amount of financing
i. INDIVIDUAL From RM5,000 to RM50,000
ii. PARTNERSHIP Up to RM100,000

Payment tenure up to 7 years
Corporate Development & Monitoring Support
Entrepreneur Development & Training

Eligibility criteria

1. Candidate

Bumiputera
Not more than 33 years old in age on the date of registration.
Willing to attend all programmes organised by PUNB

2. Business

100% owned and managed by Bumiputera entrepreneur.
New or expanding business.

Eligible focus business

  • Telecommunication & Computer Peripherals
  • Education
  • Distribution & Wet Market
  • Clothing & Accessories
  • Confectionary & Food Stall
  • Cosmetic & Beauty Services
  • Metal Equipment & Building Material
  • Photocopy & Printing
  • Books & Stationary
  • Home Furnishing
  • Automotive

Application process

  1. Participant registers and attends Entrepreneurial Suitability Assessment Session
  2. Participant attends Business Proposal Course (optional)
  3. Participant submits Business Proposal to PUNB for evaluation
  4. Participant presents Business Proposal
  5. Approval of the financing
  6. Participant attends PROSPER Usahawan Muda Entrepreneurial Certificate Course (3 Days)
  7. Disbursement and implementation (if all the required documents and terms has been fulfilled)

www.punb.com.my

RM100K – RM1mil PROSPER Runcit scheme (PUNB)

PROSPER Runcit scheme offers financing between RM100k to maximum RM1mil for your business needs.

Suitable for:-

Bumiputera entrepreneurs who are keen to venture or expand their retail business

What it offers:-

Shari’ah compliant financing products
Financing from RM100,000 to RM1,000,000
Payment tenure up to 7 years
Corporate Development & Monitoring Support
Entrepreneur Development & Training

Eligibility criteria

1. Entrepreneur

Bumiputera.
Age 18 years and above.
Possesses strong entrepreneurial characteristics such as honesty, confidence, resilience, positive mental atitude, creativity and high level of self-discipline.
Willing to attend courses that have been identified
Favourable records with financial institutions
Willing to work full time
Must be able to finance at least 10% of the total project cost.

2. Business

Retail business.
The business is 100% owned by Bumiputera
Viable business with project cost not exceeding RM1.0 million.
The business must be free of financial assistance from any financial institutions that took any form of security in form of charge on the company’s asset.
The business location has been identified.

Eligible business activities

PROSPER Runcit is open to all types of viable and sensible retail business ideas. The following list gives a good idea of all the types of retail business that we are able to provide business opportunities. They are :

Jewellery shop
Petrol station
Workshop
Specialist clinic/ medical/ dental/ veterinary
Textile & clothing shops
Optical and spectacles shops
Architect/ accountant/ lawyer and other professional firms recognised by the Government
Metal & building materials supply shop
Pharmacy
Food
Shoes & leather shop
Cosmetic and Beauty shop
Women Accessories shop
Computer equipment / telecommunications and IT shop
Books & stationery shop
Herbal & traditional medicine shop
Sports equipment and recreation shop
Electric & Electronic shop
Provisional shop/ mini market
Any other suitable businesses

Application process

REGISTRATION – Application register and sits for Suitability Assessment test (If Business Plan Already Submitted to PUNB)

BUSINESS PLAN WORKSHOP – Applicant attends Business Plan Workshop

SUBMIT THE BUSINESS PLAN – Submit the completed business plan to for PUNB’s consideration

INITIAL ASSESSMENT – PUNB will discuss with the applicant for more information and better comprehension of the proposal. This assessment focuses on five (5) key business areas: product, market, management, operation and finance.

BUSINESS PLAN PRESENTATION – After favourable initial assessment, the applicant required to make a presentation to PUNB’s Evaluation Committee which will assess the proposal’s five (5) key business areas and the applicant’s investment criteria

FINANCING APPROVAL – Approval by the PUNB investment committee

DOCUMENT PREPARATION – Applicant is required to undergo documentation process relating to financing term and conditions

MANDATORY COURSES – Applicant is required to attend all the compulsory courses set by PUNB prior to the fund disbursement

FUND DISBURSEMENT & IMPLEMENTATION – Once the documentation and fund disbursement conditions are fulfilled, PUNB will channel the fund to the enterprise for the intended purposes. PUNB will monitor the business implementation to ensure the fund is used to achieve the business targets

www.punb.com.my

RM500K – RM5mil PROSPER Pemborong scheme (PUNB)

Suitable for:-

Bumiputera entrepreneurs who are keen to venture or expand their wholesale distribution or supply business

What it offers:-

Shari’ah compliant financing products
Financing from RM500,000 to RM5,000,000
Payment tenure up to 7 years
Corporate Development & Monitoring Support
Entrepreneur Development & Training

Eligibility criteria

1. Entrepreneur

Bumiputera
Must possess strong entrepreneurial characteristics like honesty, confidence, resilience, positive mind and attitude, creativity and strong self-discipline
Knowledgeable in the business or having the experience in existing business or has secure a contract / rights to distribute / supply the goods
Able to provide at least 20% of the total project cost
No unfavourable record with any financial institutions
Fully committed to the business
Willing to attend the courses related to the business identified from time to time

2. Business

Must be in wholesale, distribution or supply
Owned and managed by Bumiputera
Strong growth potential that provides synergy to the retail

Eligible business activities

PUNB offers funding opportunity in the following areas of the business:

Food equipment / supply
Engineering spare parts and machinery
Agriculture- based products
Pharmaceutical and health care products & devices
Cosmetics and herbal based products
Textile based products
Other suitable businesses related to the retail business

Application process

REGISTRATION – Application register and sits for Suitability Assessment test (If Business Plan Already Submitted to PUNB)

BUSINESS PLAN WORKSHOP – Applicant attends Business Plan Workshop

SUBMIT THE BUSINESS PLAN – Submit the completed business plan to for PUNB’s consideration

INITIAL ASSESSMENT – PUNB will discuss with the applicant for more information and better comprehension of the proposal. This assessment focuses on five (5) key business areas: product, market, management, operation and finance.

BUSINESS PLAN PRESENTATION – After favourable initial assessment, the applicant required to make a presentation to PUNB’s Evaluation Committee which will assess the proposal’s five (5) key business areas and the applicant’s investment criteria

FINANCING APPROVAL – Approval by the PUNB investment committee

DOCUMENT PREPARATION – Applicant is required to undergo documentation process relating to financing term and conditions

MANDATORY COURSES – Applicant is required to attend all the compulsory courses set by PUNB prior to the fund disbursement

FUND DISBURSEMENT & IMPLEMENTATION – Once the documentation and fund disbursement conditions are fulfilled, PUNB will channel the fund to the enterprise for the intended purposes. PUNB will monitor the business implementation to ensure the fund is used to achieve the business targets

www.punb.com.my

RM500K – RM5 mil SME Scheme (PUNB)

Suitable for:-

Bumiputera entrepreneurs in Small & Medium Enterprises who are keen to set or grow their manufacturing or services business of high growth and export potential

What it offers:-

Shari’ah compliant financing products
Financing from RM500,000 to RM5,000,000
Payment tenure up to 7 years
Corporate Development & Monitoring Support
Entrepreneur Development & Training

Eligibility criteria

Bumiputera individuals aspiring to own and operate a business, are eligible for SME funding providing they can demonstrate strong entrepreneurial characteristics and sound values such as honesty, confidence, resilience, a positive mental attitude, a creative outlook and a high level of self-discipline; along with good communication and management skills,

The total immediate funding requirement to develop the business must be at least RM500,000,
The entrepreneur/management team must be willing and able to provide at least 20% of the total funding requirement from their own resources, if PUNB is to be the sole financier for the enterprise,

The enterprise’s product/services must be ready for market, the entrepreneur must have the proprietary rights over the product/services of the enterprise,

The business must have a good business model and sound execution strategies,

The business should be able to generate returns at least on par with the industry performance,

The business plan must provide a viable exit strategy for PUNB’s equity stake through redemption, buy back of equity, merger & acquisition, or public listing, etc.
Eligible business activities

We focus on funding Bumiputera entrepreneurs who are planning to set up, or who are already running businesses in any of the following industries:-

  • Information and Communications Technology
  • Electrical, Electronics and Computer Hardware
  • Bio-Technology, Pharmaceutical, Medical & Health Care Devices/Services
  • Food Technology
  • Agriculture Based Products
  • Automotive Components Manufacturing
  • Chemicals, Petroleum & Gas Products/Services
  • Any other suitable economic sectors that provide synergy to PUNB’s present investment portfolio

Application process

REGISTRATION – Application register and sits for Suitability Assessment test (If Business Plan Already Submitted to PUNB)

BUSINESS PLAN WORKSHOP – Applicant attends Business Plan Workshop

SUBMIT THE BUSINESS PLAN – Submit the completed business plan to for PUNB’s consideration

INITIAL ASSESSMENT – PUNB will discuss with the applicant for more information and better comprehension of the proposal. This assessment focuses on five (5) key business areas: product, market, management, operation and finance.

BUSINESS PLAN PRESENTATION – After favourable initial assessment, the applicant required to make a presentation to PUNB’s Evaluation Committee which will assess the proposal’s five (5) key business areas and the applicant’s investment criteria

FINANCING APPROVAL – Approval by the PUNB investment committee

DOCUMENT PREPARATION – Applicant is required to undergo documentation process relating to financing term and conditions

MANDATORY COURSES – Applicant is required to attend all the compulsory courses set by PUNB prior to the fund disbursement

FUND DISBURSEMENT & IMPLEMENTATION – Once the documentation and fund disbursement conditions are fulfilled, PUNB will channel the fund to the enterprise for the intended purposes. PUNB will monitor the business implementation to ensure the fund is used to achieve the business targets

www.punb.com.my