PUTRAJAYA: A lifeline in the form of a recapitalisation fund has been extended to small and medium enterprises (SMEs).
The RM600 million fund, launched today by SME Bank to be disbursed in the form of equity, is to help entrepreneurs who have been severely affected by the Covid-19 pandemic.
SME Bank group president and CEO Aria Putera Ismail said that through the recapitalisation fund, entrepreneurs would be able to restructure their financial needs.
“This will also enable them to focus on product offerings and service improvement that will help grow their business,” he told a press conference after the launch today.
The SME Recapitalisation Fund is part of the Semarak Niaga Programme introduced in the 2022 budget, aimed at ensuring the regrowth of SMEs, promoting business expansion and controlling their debts through more innovative financing solutions.
As the implementing agency, SME Bank allocated RM200 million towards the fund while the Bumiputera Agenda Steering Unit (Teraju) allocated RM300 million and Bank Simpanan Nasional contributed RM100 million.
Aria Putera said the fund offers equity investment of up to RM5 million for those eligible and it can be used as working capital with a repayment period of up to five years with an estimated dividend rate of 6% per annum.