KUALA LUMPUR: Bank Negara Malaysia is introducing two new facilities under the central bank's fund for small and medium enterprises (SMEs).
The two new facilities are the RM1 billion Business Recapitalisation Facility (BRF) and the RM1 billion Low Carbon Transition Facility (LCTF).
In a statement today, Bank Negara said applications to these facilities would be open from February 3, 2022, until the funds are fully utilised.
Governor Tan Sri Nor Shamsiah Mohd Yunus said more innovative financing solutions, such as blended finance and equity financing, pool together resources, capacity and knowledge across the public and private sectors comprising banks, development financial institutions and equity investors.
"This enables businesses to build back better in the post-pandemic landscape," she said.
Bank Negara said the BRF aims to support SMEs to recover and grow while managing their level of indebtedness through innovative financing solutions.
The facility is available for SMEs of all economic sectors, up to a maximum of RM5 million, for financing working capital and capital expenditure.
The tenure of financing is up to 10 years.
Bank Negara said the effective rate for debt financing under BRF is up to 3.5 per cent per annum for financing without guarantee, or up to 5.0 per cent per annum inclusive of any guarantee fee.
The RM1 billion LCTF by Bank Negara supports and encourages SMEs to adopt sustainable practices for business resilience.
"Under the design of the facility, financial institutions will match the LCTF with RM1 billion of their funds.
"This facility is in line with the government's target for Malaysia to be a net-zero emission economy by 2050," it added.
Bank Negara said the LCTF is available for SMEs of all economic sectors, up to a maximum of RM10 million, for financing working capital and capital expenditure.
The tenure of financing is up to 10 years. The financing rate is up to 5.0 per cent per annum, inclusive of any guarantee fee.
Bank Negara said interested SMEs could apply directly from participating commercial banks, Islamic banks and development financial institutions regulated by Bank Negara.
Meanwhile, Bank Negara recently increased the Disaster Relief Facility (DRF) 2022 by RM300 million, bringing the total allocation to RM500 million.
Eligible SMEs and micro-enterprises will now obtain financing up to RM700,000 per SME and up to RM150,000 for micro-enterprises.
The financing tenure has been extended up to seven years.