CAPITAL.MY

Alternative Funding Sources for Businesses

Grant – Loan Facility

Grant – Loan Facility

Introduction

Grant and Loan facility (GLF) is a joint facility between SMIDEC and SME Bank. Assistance is given in the form of grant (SMIDEC) and loan (SME Bank). SMEs are required to contribute for remaining 5%.

Objective

To Provide assistance for SMEs in the form of grant (SMIDEC) and loan (SME Bank) for :

  • Specific cost for business start-up
  • Product and process improvement
  • Certification and quality management systems
  • Enhancing product packaging
  • Development and promotion of Halal products

Eligible Sectors

  • Manufacturing
  • Manufacturing related services
  • Services (excluding insurance and financial services)

Qualifying Criteria

SMEs incorprated under the Companies Act 1965 or Registration of Businesses Ordinance 1956 with annual sales turnover of not exceeding RM25 million and full time employees not exceeding 150.

For the services sector, businesses incorporated under the Registration of Business Ordinance 1956 with an annual sales turnover of not exceeding RM5 million or full-time employees not exceeding 50

  • At least 60% equity held by Malaysians.
  • Possess valid business premise
  • Aviable project with growth potential and is able to prove loan repayment ability.
  • Financing is based on joint approval between SMIDEC and SME Bank.

Limit, Nature, Tenure, Margin of Financing and Profit Rate for Financing

  • Terms and conditions applied are based on standard guidelines of SMIDEC and SME Bank with minimum financing of RM20,000.
  • The above financing can also be packaged with working capital financing (fixed/revolving), subject to item (i)
  • Interest /Profit Rate : 4% – 6% per annum based on standard guidelines of SME Bank’s loan fund.

Processing Fee

Based on standard guidelines of SME Bank.