InfoQuest, (October 21, 2019) -- After the small and medium-sized enterprises (SMEs) promotion committee meeting chaired by Prime Minister and Minister of Defense Prayt Chan-o-cha, Mr. Suwanchai Lohawatanakul, director-general of the Office of Small and Medium Enterprise Promotion (OSMEP), revealed that in response to domestic consumption-investment stimulus measures, the meeting approved the allocation of 10 billion baht to the SMEs promotion fund in a bid to implement the SMEs support project, and approved the 2019-2020 related work plans and budget expenditure plans.
Mr. Suwanchai said the OSMEP and the SME Development Bank had set criteria and conditions for the implementation of the SMEs support project, as well as related work plans and budget expenditure plans. The program will target the SMEs with less than 50 million baht of annual operating revenue. It is estimated that at least 12,250 enterprises will get access to the business lines of credit. There are two types of credit lines. For corporate enterprises or enterprises that have completed VAT registration, the credit line will not exceed 1 million baht, while for other SMEs, the maximum of the credit line is 500,000 baht. The annual interest rate will be 1 percent, the loan term will not exceed 7 years, and the grace period for principal repayment will not exceed 1 year.
To apply for such credit loans, a guarantor is required and the guarantor must not have received any assistance fund from the SMEs revitalization project, the SMEs recovery project or the national SMEs development fund. The credit program will be implemented by the SME Development Bank and is expected to be implemented from November 2019 to October 2020.
Mr. Suwanchai said he expected that at least 12,250 SMEs will receive financing totaling 9.794 billion baht, which can be used to repair equipment, expand businesses, upgrade services and boost production capacity. This will ensure that SMEs can continue to run and generate higher income.
In addition, it is believed that the program will improve the liquidity of funds in the economic system, and are expected to increase the revenue of SMEs involved in program by at least 20 percent, which will help maintain employment or even create more jobs.
Source: InfoQuest, by Tanit Tongnok / Tanawat/ Rachada, translated by Xinhua Silk Road
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