PUTRAJAYA, Oct 17 (Bernama) -- The Small and Medium Enterprise (SME) Recapitalisation Fund worth RM600 million in the form of equity was officially launched today for entrepreneurs who have been severely affected by the COVID-19 pandemic.
SME Bank group president and chief executive officer Datuk Aria Putera Ismail said through the recapitalisation fund investment which is expected to benefit nearly 600 SMEs, entrepreneurs would be able to restructure their financial needs.
"This will also allow them to focus on product offer aspects, service improvement which will help grow their business," he told a press conference after Ministry of Entrepreneur Development and Cooperatives (MEDAC) secretary-general Datuk Suriani Ahmad officiated at the launch.
The SME Recapitalisation Fund is part of the Semarak Niaga Programme introduced in Budget 2022, 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 six per cent per annum.
As an added value, he said entrepreneurs who are eligible would get to attend the Malaysian Equity Programme to be conducted by the Centre for Entrepreneur Development and Research (CEDAR), a subsidiary of SME Bank and implementing partner of the programme.
"CEDAR will be using the Enterprise Life Cycle Scoring Assessment or ELSA tool to obtain a report on the life cycle of the entrepreneurs’ business to help them draw up the latest business plan and set development targets," he said.
SME entrepreneurs who are interested in the Recapitalisation Fund may contact SME Bank Customer Service Centre at 03-26037700 or visit their official website www.smerecapfund.com for more information.
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