BNM announces increased allocation and refinancing options for SMEs -A +A
KUALA LUMPUR, Malaysia (July 2): As part of a list of modifications to the Central Bank’s programs for SMEs, Bank Negara Malaysia has committed another RM2 billion to the Targeted Relief and Recovery Facility (TRRF) to provide relief to businesses in the services industry, increasing the total allocation for the facility to RM6 billion.
BNM also announced that it will boost the allocation for the All Economic Sector (AES) Facility, which aims to improve SMEs’ access to funding, by RM2 billion to RM6.5 billion, according to a release.
Prime Minister Tan Sri Muhyiddin Yassin had earlier announced the two additions as part of the PEMERKASA+ and PEMULIH packages, respectively.
Furthermore, the TRRF and PENJANA Tourism Financing (PTF) facilities now allow SMEs to use a portion of their financing earnings to pay off existing business loans.
The maximum amount that can be used for refinancing is up to 30% of approved financing for the TRRF and up to 50% for the PTF, according to the Central Bank.
Furthermore, Special Relief Facility and PENJANA SME Financing grantees are now eligible to apply for the PTF (up to RM300,000 per SME).
“The PTF aims to help SMEs in the tourism sector by conserving their capacity and aiding them in adapting and being viable post-pandemic,” BNM explained.
It stated that interested SMEs can apply for these facilities directly from participating financial institutions, and that if they have any questions about the financing facilities, they should go to bnm.gov.my/covid19 or contact the Central Bank at bnm.my/LINK./n
