CAPITAL.MY

Alternative Funding Sources for Businesses

SME Assistance Facility

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