UPDATE: Disaster Relief Facility for SMEs Affected by the Recent Floods
The SME Emergency Fund (SMEEF) is provided by SME Corp Malaysia and released through Malaysia Industrial Development Finance (MIDF) to help SMEs whose businesses were badly affected by the recent floods in Penang.
The SMEEF provides a maximum of RM20,000 grants. For these Grants, applicants who provide all required documents are able to get approval within six days and once the application is approved, the grant will be distributed within 14 days.
Besides, SME Corp Malaysia also provides a maximum loan of RM100,000 at 3% low interest rate and released through Malaysia Industrial Development Finance (MIDF).
We feel sad to say that after the disaster PCCC has held a press conference to announce this information. However, to date, after more than two weeks, not many affected SMEs actively applied for this grant. Therefore, PCCC would like to call upon those affected SMEs immediately to apply the grant, as the application period is only two months from the date of disaster.
As long as SMEs have a license, all sector SMEs such as restaurants, education, logistics, services, manufacturing and other industries can apply.
Damage caused by flood, those commercial vehicles which were damaged due to flood, can also apply for this grant.
As long as SMEs in manufacturing with their sales or turnover do not exceeding RM50 million a year or number of full employees not exceeding 200, and SMEs in Service Sector sales turnover not exceeding RM20 million or number of full-time employees not exceeding 75. Subsidiary of a listed company, is not eligible to apply for the above fund.
Through this fund, SMEs will be able to restart business operations and the assistance can be used to purchase new machinery/equipment, raw materials or stocks as well as to refurbish their premises.
The applicant must submit proof of natural disasters, including: photographs of the scene of a natural disaster; police report; obtain a disaster report or letter from the county or local government. The applicant must also obtain a business license from the local government and submit a completed application form. .
Application forms can be obtained from PCCC Secretariat, or downloaded from SME Corp website at www.smecorp.gov.my.
PCCC is willing to provide assistance on application of SMEEF for SMEs which affected by the floods.
Besides that, Bank Negara Malaysia (BNM) is providing a RM500 million Disaster Relief Facility where the affected businesses could obtain financing at a concessionary rate from any commercial bank, Islamic bank and development financial institutions regulated by BNM.
The maximum amount of financing for each company is RM500,000, BNM will provide 60% guarantee on the financing obtained through Credit Guarantee Corporation Malaysia Berhad (CGC). Annual interest rate of 2.25%, financing period of up to 5 years, and a 6-month grace period. This application will start from November 8, 2017 until May 31, 2018