Bangkok: The SME Bank has announced a substantial loan guarantee program, offering a full credit limit of 50 billion baht, aimed at boosting liquidity for small and medium enterprises (SMEs) in the southern region. This initiative is part of the "SME Bank Quick Big Win" program, designed to stimulate economic growth and support SMEs facing financial challenges.
According to Thai News Agency, the government, led by the Ministry of Finance, has rolled out the "Quick Big Win" policy to counter economic slowdowns and address issues such as SMEs' limited access to formal funding, the impact of US import tariffs, border disputes, and a decline in tourist numbers. Recent flooding, particularly in Hat Yai, Songkhla Province, has exacerbated these challenges, prompting the government to implement the "TCG Quick Big Win" loan guarantee scheme with a 50 billion baht limit.
The scheme is divided into three main projects tailored to different SME types. The SME Quick LG loan guarantee program, with a 5 billion baht limit, targets entrepreneurs needing a letter of guarantee. The SME Go Big program, offering a 35 billion baht credit limit, caters to general SMEs and supply chains seeking loans over 1 million baht. Lastly, the SME Smart Win program provides a 10 billion baht guarantee for micro-SMEs and self-employed individuals. All programs offer free guarantee fees for the first three years, with subsequent fees based on risk assessment.
Mr. Sitthikorn Direksunthon, Director and General Manager of the Small and Medium Enterprise Credit Guarantee Corporation (TCG), highlighted that the initiative aims to provide SMEs with rapid and sufficient access to capital, supporting business operations and fostering opportunities in government and large business procurement. The program is expected to benefit over 54,300 SMEs, generating substantial economic benefits and maintaining employment for over 554,800 individuals.
Additionally, the SME Bank has introduced urgent measures to assist customers in flood-affected areas, such as Hat Yai. These measures include a suspension of fees and installment payments for up to 12 months, offering immediate relief to businesses impacted by the floods. A six-month suspension is available for those in regions declared as emergency areas by the Department of Disaster Prevention and Mitigation.
To further support SMEs, the SME Bank has launched the "SME Bank Ready to Help" measure, offering a 0% interest rate and a seven-year repayment plan, along with debt relief options. This initiative aims to help businesses manage debt and regain financial stability in a challenging economic environment.