null Additional Allocation of RM2 billion for the Targeted Relief and Recovery Facility and the Establishment of a RM200 million Disaster Relief Facility 2021
Additional Allocation of RM2 billion for the Targeted Relief and Recovery Facility and the Establishment of a RM200 million Disaster Relief Facility 2021
8 Feb 2021 | Monday source: Bank Negara Malaysia
Bank Negara Malaysia (BNM) wishes to announce an additional allocation of RM2 billion for the Targeted Relief and Recovery Facility and the establishment of a RM200 million Disaster Relief Facility 2021.
1. Additional allocation for Targeted Relief and Recovery Facility (TRRF)
BNM will increase the allocation for the Targeted Relief and Recovery Facility by another RM2 billion, increasing the total allocation of the facility to RM4 billion. The Facility will be available until 31 December 2021 or full utilisation, whichever is earlier.
SMEs that are recipients of the Special Relief Facility and PENJANA SME Financing are now eligible to apply for TRRF, subject to a total financing limit not exceeding RM500,000. For SMEs in the tourism and tourism-related services subsectors, assistance remains available under the existing PENJANA Tourism Financing. Updated features of TRRF are provided in Appendix 1.
2. Establishment of a RM200 million Disaster Relief Facility (DRF) 2021
The DRF 2021, with an allocation of RM200 million, is established to alleviate the financial burden and assist in the resumption of business operations of SMEs affected by the recent floods in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas.
DRF 2021 aims to assist SMEs cover the costs of repairs and replacements of damaged assets for business use. It is available to Malaysian SMEs, including microenterprises, with a maximum amount of financing of up to RM500,000 per SME and up to RM75,000 per micro enterprise. The tenure of the financing is up to 5 years, including a moratorium period of 6 months on both principal and interest payments. The financing rate is up to 3.50% per annum, inclusive of guarantee fee.
The facility will be available until 31 July 2021 or full utilisation, whichever is earlier.
Affected businesses can apply for financing at a concessionary rate from participating financial institutions which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM.
Further details on the DRF 2021 are provided in Appendix 2. More information is also available at bnm.gov.my/sme-financing.
SMEs in other sectors can access the various facilities available under BNM’s Fund for SMEs. Details on these funds are available at bnm.gov.my/covid19/.
The public may also contact Bank Negara Malaysia at bnm.my/LINK if they face any difficulties with respect to the above facilities.
05 Feb 2021
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