HLB Invites SMEs to Apply for PENJANA SME Financing Scheme
Application is now open and eligible SMEs can receive up to RM500,000 financing at 3.5% p.a to facilitate their business recovery and continuity journey post COVID-19
Kuala Lumpur, 29 June 2020 – Hong Leong Bank Berhad (“HLB” or “the Bank”) announces its participation in the PENJANA SME Financing (“PSF”) Scheme where the Bank will lend its support to local SME businesses which have been adversely impacted by COVID-19. The HLB PSF scheme is available to all SMEs including emerging SMEs (i.e. SMEs with a minimum of 12 months business operations or SMEs with no credit / borrowing history) as part of their business recovery and continuity journey.
Under the HLB PSF scheme, eligible SMEs stand to receive financing in the form of working capital of up to RM500,000 per SME with no collateral required for a term loan up to 5 years, with a financing rate capped at 3.50 per cent per annum. For the first 6 months upon receiving the financing, SMEs only need to service the interest.
Domenic Fuda, Group Managing Director and Chief Executive Officer of HLB shared that while even as Malaysians were starting to resume social activities, and businesses in almost all sectors are now allowed to operate in this recovery phase of the Movement Control Order (“MCO”), economic recovery will take time. Cash flow still remains a serious concern for SMEs which had to deal with a heavy blow to their finances amidst the weaker economy and a subdued marketplace where consumer sentiment is still low.
“While the more established and digitally prepared SMEs may be able to withstand the blow, new and emerging SMEs are particularly vulnerable especially when it is well documented that only 50% of SMEs are able to sustain their businesses within the first five years of establishment. With SMEs being the engine of the economy as they represent 98.5% of the total business establishments in Malaysia, as a bank with a strong entrepreneurship heritage, we are here to facilitate them in rebooting their businesses with this financing scheme aimed at providing short term financial buffers as a way to protect the business continuity plans,” said Fuda
“Apart from bridging liquidity shortfalls, we hope SMEs can tap into their entrepreneurship DNA in using the PSF Scheme to help them enhance their resiliency and look for opportunities to transform their business so that they are ready for the next phase of growth when the economic recovery is well underway. We have seen some SMEs pivoting to digitalisation and for goods and services borne out of this crisis. This drive for innovation and adapting to our new normal is essential for survival as well as future growth. Together with the Bank’s loan and financing deferment program, the PSF will further give SMEs the opportunity to shore up resources, so that they can get back on their feet sooner,” he added.
Applications for the HLB PSF scheme is open until 31 March 2021 or until the RM2 billion allocation by the Government aggregated across participating banks under the PENJANA SME Financing Scheme is exhausted. Interested SMEs can find out more and apply by simply filling up an e-form at https://www.hlb.com.my/en/business-banking/group-sme-banking/penaja-sme-financing-scheme.html