The Cabinet has approved adding 50 billion baht to the Government Savings Bank’s soft loan, hoping to help small SMEs, freelancers, and flood victims in 2024.
Mr. Pornchai Thiravet, spokesman for the Ministry of Finance, revealed that the flood situation occurred in many areas, causing damage and affecting the business operations and occupations of SMEs, small entrepreneurs, and freelancers, resulting in loss of income and liquidity problems. The Cabinet meeting therefore approved an increase in the credit line for the GSB Boost Up soft loan project of the Government Savings Bank and the loan guarantee project to help SMEs from the 2024 floods under the PGS 11 project of the SME Bank, allowing SMEs to access sources of funds.
The main points are as follows: 1. Allocate a budget of 50 billion baht under the GSB Boost Up soft loan project by expanding the target group to cover SMEs, small entrepreneurs, and freelancers. The Government Savings Bank will support low-interest funding sources for participating f
inancial institutions, both commercial banks and specialized financial institutions, at an interest rate of 0.01 percent per year for a period of 2 years to provide loans to those affected by the flood situation at an interest rate not exceeding 3.5 percent per year for a period of 2 years, with a credit limit of no more than 40 million baht per person for all financial institutions. Under the said credit limit, the Government Savings Bank can provide loans to those directly affected by the flood situation under the same criteria and conditions. Loan applications can be submitted until December 30, 2024.
2. Loan guarantee project to help SMEs affected by the 2024 floods under the PGS 11 project of the SME Bank to help SMEs and small entrepreneurs affected by the flood situation. The SME Bank pays compensation throughout this project, increasing to no more than 40 percent from the previous average of 30 percent. The government will pay the guarantee fee on behalf of the entrepreneurs in the first 3 years. Aft
er that, the SME Bank charges a guarantee fee of 1.25 percent per year from the entrepreneurs. The guarantee period is not more than 10 years. Accepting applications for guarantees until April 30, 2025.
The Ministry of Finance is confident that liquidity assistance for those affected by the floods will help them rehabilitate their businesses to resume their occupations and continue their businesses after the situation improves. The Ministry of Finance will closely monitor the situation and is ready to issue appropriate measures to take care of those affected promptly so that there is no widespread impact on economic activities.
Source: Thai News Agency