Disaster Relief Facility 2017 (DRF) & Disaster Relief Facility-i 2017 (DRF-i)

Objective

The objective of the Disaster Relief Facility 2017 (DRF) and Disaster Relief Facility-i 2017 (DRF-i) is to alleviate the problems faced by the Small and Medium Enterprises (SMEs) affected by the recent floods, through the provision of new financing to the businesses, to enable them to resume their business operations.

Total Allocation

RM500 million

Application Procedures

The financing application is made through any participating financial institutions (PFIs). Approval will be subjected to normal vetting procedures and security requirements of the PFIs.

Participating Financial Institutions (PFIs)

Applicable to all PFIs defined as follows:-

  • All licensed banks under the Financial Services Act 2013 (FSA);
  • All licensed Islamic banks under the Islamic Financial Services Act 2013 (IFSA); and
  • All prescribed development financial institutions under the Development Financial Institutions Act 2002 (DFIA)

Scheme Availability

This scheme is available from 8 November 2017 until 31 May 2018

Eligibility Criteria

  • Meet National SME Development Council’s (NSDC) SME definition (for details, please click here).
  • Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.
  • SMEs that fulfil the following criteria shall be eligible for financing from the Fund: –
    1. i) located in the districts that are affected by disasters as identified by National Disaster Management Agency (for details, please click here) or other competent authorities;
    2. ii) registered with the Companies Commission of Malaysia (SSM), authorities / district offices in Sabah and Sarawak or statutory bodies for professional service providers; and
  • iii) shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.

Type of Facility

Term financing only

Financing Amount

  • No minimum amount
  • Maximum financing amount of RM500,000 per SME inclusive of financing to related companies that have common shareholder(s)

Purpose of Financing

  • Repairs and / or replacement of assets for commercial use (e.g. plants and machinery) which have been damaged by natural disasters; and / or
  • Working capital

Financing should not be used for:

  • Refinancing of existing credit / financing facilities;
  • Non-Shari’ah-compliant business activities (applicable for DRF-i 2017)

Effective Profit Rate

  • 25% per annum
  • No collateral is required for this Facility

Financing Tenure

Up to FIVE (5) years from the date of the first drawdown, including a moratorium period of SIX (6) months on both principal and profit payments and non-classification of the financing as impaired during the moratorium

Guarantee Coverage

  • BNM via CGC shall provide a 60% guarantee cover on the principal and normal profit rate while the remaining financing risk of 40% shall be borne by the PFIs
  • The guarantee cover shall remain in force up to the maturity date of the facility with a maximum tenure of FIVE (5) years

Guarantee Fee

No guarantee fee shall be charged to the customer