Can SMEs Survive The COVID-19 Economic Slowdown?

Many small and medium enterprises have been impacted by the economic standstill caused by various movement control orders to stem the spread of the Covid-19 pandemic.

In an October 2020 report by The Edge Markets, the SME Association of Malaysia carried out a survey among 1,713 members and found out that 20% of its respondents were considering permanently shuttering their business in the next six months.

The survey also revealed that 22% of the respondents only have sufficient cash flow to last them for a month.

If your business is in need of cash flow, you may want to consider applying for the CIMB Financial Relief Assistance for SMEs. It features a variety of relief measures that cater to different types of enterprises.

CIMB Financial Relief Assistance for SMEs

Payment Assistance Programme (PAP) for SMEs

Need help with your existing financing payment? Applying for PAP could be the ideal solution.

Types of financing / How can this help my enterprise: 

  • Term Loan/ Term Financing-i: Pay only the interest/profit portion or partial payment for up to 12 months.
  • Overdraft/ Cash Line-i: Payment period of up to 12 months for settlement of principal and interest/ profit in excess.


Am I eligible? Yes, if:

  • Your business is classified as SME as defined by SME Corporation Malaysia.
  • You are an existing CIMB customer with Loan/Financing with CIMB.Note: All applications will be subject to the bank’s assessment and approval.


Availability:
Until 30 June 2021

Other benefits:

  • No stamp duty
  • No additional fees/charges


Required documents:
Latest 6 months’ bank statement

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Applying for PAP could be the ideal solution if your business needs help with its existing financing payment.

Expanded Targeted Payment Assistance (ETPA) – for microenterprises

A helping hand for microenterprise customers.

Types of financing: 

  • Option 1: 3 months deferment of instalment
  • Option 2: 50% reduction in instalment for 6 months


Am I eligible?
Yes, if you are a Micro SME with a sales turnover below RM300,000 or less than 5 full-time employees. Your financing amount must also be less than RM150,000.

Availability:
Until 30 June 2021

Required documents:
No supportive documents are required to prove your eligibility. The application process will depend on the bank’s internal data and customer declaration.

PENJANA SME Financing Scheme

Need to boost your working capital? This could be just what your business needs.

Types of financing:
For your working capital only. It’s not for the refinancing of existing credit/financing facilities.

Am I eligible?
Yes, if your SME is owned and controlled by Malaysians who hold a minimum 50% shareholding.

Availability:
From July 2020 onwards or until the available limit has been exhausted

Terms:

  • Up to RM500,000 per eligible SME
  • Maximum tenure of up to 5 years.
  • Maximum interest/profit rate of 3.50% p.a
  • Subject to CIMB’s assessment and criteria.


Required documents: 

  • Latest 6 months’ bank statement
  • Latest Audited Financial Report/ Management Account

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The Penjana SME Financing Scheme can help to boost your working capital.

Targeted Recovery & Relief Facility (TRRF)

Were your revenues affected by the reintroduction of targeted movement control orders since June 2020? This facility can boost your working capital.

Types of financing:
Working capital

Tenure:
Up to 7 years, including a 6 months moratorium on monthly instalments

Maximum financing amount:
Up to RM500,000 per SME

Note: The above is applicable for associated companies for SMEs with common shareholder(s) i.e. with less than 20% shareholding.

Interest/Profit rate:
Up to 3.5% p.a. (Inclusive of Guarantee Fees.)

Additional features:
The facility will be guaranteed by Credit Guarantee Corporation Malaysia Berhad (CGC)/ Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) of up to 80%. Guarantee fees are to be borne by the Bank.

Am I eligible?
Yes, if you are an SME in targeted vulnerable sectors such as personal services, food and beverage services, human health and social work, arts, entertainment and recreation subsectors.

Availability:
December 2021 or exhaustion of TRRF fund, whichever comes first

Required documents:
Latest 6 months’ bank statement (not required if CIMB is your main bank)

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If your revenues were affected by targeted movement control orders, TRRF can give your working capital a boost.

Need more information?

With the upcoming launch of CIMB’s new enhanced virtual assistant, VOX, your application process will be much easier in the future. Equipped with the latest financing AI, VOX can help answer your questions regarding the Financial Relief Assistance for SMEs. Stay tuned for further updates!       

The CIMB Business Call Centre is also reachable via phone calls. For SME customers, please call CIMB’s Business Call Centre at 1 300 888 828. For non-SME and corporate customers, please contact your Relationship Manager to make the necessary arrangement.

You can also visit www.cimb.com.my/frap to access more details about the eligibility requirements and FAQs for the Financial Relief Assistance for SMEs.