BNM sets aside extra RM2b for Targeted Relief and Recovery Facility, sets up RM200m Disaster Relief Facility 2021
BNM sets aside extra RM2b for Targeted Relief and Recovery Facility, sets up RM200m Disaster Relief Facility 2021
Appendix 1: Targeted Relief and Recover Facility (TRRF)
Features |
Details |
Objective |
Provide relief and support recovery for SMEs in the services sector affected by reintroduction of containment measures since June 2020, except tourism and tourism-related subsectors |
Allocation |
RM4 billion |
Eligibility |
SMEs* in services sector affected by reintroduction of COVID-19 containment measures since June 2020 (except for tourism and tourism-related subsectors), such as:
Note: Recipients of the Special Relief Fund and PENJANA SME Financing are eligible for the TRRF up to an aggregate limit of RM500,000 per SME |
Purpose of financing |
Working capital only |
Financing size |
Note: The above is applicable for SMEs with common shareholder(s) of > 20% shareholding |
Financing rate to SMEs |
Up to 3.50% per annum, inclusive of guarantee fee |
Tenure |
Up to 7 years, with a moratorium on monthly instalments of at least 6 months |
Guarantee coverage |
Participating financial institutions can obtain guarantee coverage from the Credit Guarantee Corporation Malaysia Berhad (CGC) / Syarikat Jaminan Pembiayaan Perniagaan (SJPP) |
Application procedure |
Interested SMEs may apply for the TRRF at participating financial institutions which comprise:
|
Availability |
Until 31 December 2021 or full utilisation (whichever is earlier) |
*At least 51% shares held by Malaysians and as defined by SME Corp’s Guidelines on
National SME Definition accessible at:
https://www.smecorp.gov.my/images/pdf/2020/Guideline-SMEDefinition_updated.pdf
Appendix 2: Disaster Relief Facility 2021
Features |
Details |
Objective |
To alleviate the financial burden of SMEs affected by floods and enable them to resume their business operations |
Allocation |
RM200 million |
Eligibility criteria |
Microenterprises and SMEs* affected by floods located in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas |
Purpose of financing |
Note: Financing should not be used for refinancing of existing credit/financing facilities |
Financing size |
|
Financing rate to SMEs |
The maximum effective financing rate is up to 3.50% per annum, inclusive of guarantee fee |
Tenure |
Up to 5 years, including a moratorium period of 6 months on both principal and interest payments. |
Guarantee coverage |
|
Application procedure |
Affected businesses can apply for financing from participating financial institutions comprising commercial banks, Islamic banks and development financial institutions regulated by BNM. |
Availability |
Until 31 July 2021 or full utilisation (whichever is earlier) |
*At least 51% shares held by Malaysians and as defined by SME Corp’s Guidelines on
National SME Definition accessible at:
https://www.smecorp.gov.my/images/pdf/2020/Guideline-SMEDefinition_updated.pdf
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