A look at the Covid-19 Special Relief Facility

Bank Negara Malaysia has allocated financing facilities under its Special Relief Facility for SMEs adversely affected by the Covid-19 outbreak.

To support business owners during the Covid-19 outbreak, Bank Negara Malaysia (BNM) has allocated financing facilities under its Fund for SMEs in maintaining business operations, preventing layoffs and promoting domestic investments.

Here is a list of most frequently-asked questions about the Special Relief Facility.

What is the purpose of the Special Relief Facility?

The allocation of RM5 billion by BNM 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?

3.5% p a

What is the financing tenure?

5.5 years, including a six-month moratorium on repayments.

What is the period of validity?

The facility is valid from March 6 until Dec 31, 2020 or until the complete 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 six months, affordable financing rate of 3.75% inclusive of guarantee fees, maximum financing of up to RM1 million and up to 80% guarantee coverage by the Credit Guarantee Corporation.

What businesses are eligible for the Special Relief Facility?

  • Any businesses classified as an SME, as defined by the SME Corporation Malaysia.
  • Any SME significantly affected by the Covid-19 outbreak as per assessment by BNM or in the areas identified by Agensi Pengurusan Bencana Negara or other competent authorities.
  • Businesses 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 six month’s bank statement.
  • Latest audited report.
  • NRIC.
  • 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 that business was affected by the Covid-19 outbreak.

For further details, visit www.smebank.com.my.

This article first appeared in jobstore.com

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