To support business owners during the COVID-19 outbreak, Bank Negara Malaysia(BNM) has allocated financing facilities under BNM’s Fund for SMEs in maintaining business operations, preventing layoffs and promoting domestic investments. So what does the Special Relief Facility provide?
Purpose of the Special Relief Facility?
An allocation of RM2 billion by Bank Negara Malaysia is to manage the short-term cash flow issues faced by business owners adversely affected by the COVID-19 outbreak.
What is the financing rate?
What is the financing tenure?
5.5 years, including 6 months moratorium on repayments
What is the availability period?
The validity period starts from 6th March until 31st December 2020 or exhaustion of the RM5 billion fund whichever is earlier
What are the perks of the Special Relief Facility?
A maximum tenure of up to 5.5 years, including a moratorium period of 6 months, affordable financing rate of 3.75% inclusive guarantee fees, maximum financing of up to RM1 million and up to 80% guarantee coverage by Credit Guarantee Corporation.
What business is eligible for the Special Relief Facility?
- Any businesses classified as SME, as defined by SME Corporation Malaysia
- Significantly affected by the outbreak as per assessment by BNM or in the areas identified by Agensi Pengurusan Bencana Negara or other competent authorities
- Registered with the Companies Commission of Malaysia(SSM), authorities/district offices in Sabah and Sarawak or statutory bodies for professional service providers
- Maximum shareholders’ fund not exceeding RM5 million-Shareholding by Public Listed Companies and Government Linked Companies in the SMEs shall not exceed 20% and above
- Malaysians residing in Malaysia that hold a minimum of 51% shareholding in the SMEs
What are the documents required for registration?
- Latest 6 month’s bank statement is required for application
- Latest audited report
- Completed application form
- Form 9
- Form 24
- Form 49
- Memorandum of Association
- Certificate of Registration(Sole Prop/Partnership only)
- Letter of Declaration and documentary evidence to clearly demonstrate reasonable scenarios showing the business has been affected by COVID-19 outbreak