BNM allocates additional funds for SMEs and flood-affected businesses

BANK Negara Malaysia (BNM) is allocating an additional RM2 bil for the Targeted Relief and Recovery Facility (TRRF), increasing the total allocation for it to RM4 bil.

With the facility being made available until Dec 31 of this year or until it is fully utilised, TRRF is offered to small and medium sized enterprises (SMEs) that receive the Special Relief Facility and Penjana SME Financing (subject to a total financing limit not exceeding RM500,000).

“For SMEs in the tourism sector or tourism-related services subsectors, assistance remains available under the existing Penjana Tourism Financing,” BNM said in a statement released today.

Additionally, BNM is also establishing a Disaster Relief Facility (DRF) 2021 with an allocation of RM200 mil, that is meant to ease the financial burden of SMEs that are affected by the recent floods in districts identified by the Agensi Pengurusan Bencana Negara.

According to BNM, DRF 2021 aims to help SMEs cover the costs of repair and replacements of damaged assets for business use.

The DRF 2021 is available to Malaysian SMEs, including micro enterprises, with a maximum amount of financing of up to RM500,000 per SME and up to RM75,000 per micro enterprise.

The tenure of the financing is stretched up to five years, inclusive of a moratorium period of six months on both principal and interest payments, with a financing rate of up to 3.50% per annum (plus guarantee fees).

The facility will be available until July 31 or until it is fully utilised.

Affected businesses can apply for financing at a concessionary rate from participating financial institutions which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM. – Feb 5, 2021

Subscribe and get top news delivered to your Inbox everyday for FREE