Bangkok: The SME Bank is accelerating its initiatives to aid small and medium enterprises (SMEs) in rehabilitating their businesses following the recent floods in the northern region, enabling these businesses to access essential funding and reduce reliance on informal lenders. According to Thai News Agency, Mr. Sittikorn Direksunthon, the Director and General Manager of the Small Industry Credit Guarantee Corporation (TCG), highlighted the extensive impact of the floods on residences and SME business establishments. In response, the government has implemented measures to support SMEs, notably through TCG’s low-interest loan guarantee measure under the SME Loan Guarantee Project for Rehabilitation, No One Left Behind. This initiative offers a credit limit of 1 billion baht, providing guarantees from 10,000 to 2 million baht per person, with a maximum repayment period of 10 years, and waives fees for the first three years to alleviate financial burdens on flood-affected SMEs.

Additionally, SME Bank is working
in collaboration with several financial institutions to guarantee low-interest loans under the ‘GSB Boost Up Soft Loan’ project. Following a Cabinet resolution on October 1, the Government Savings Bank has been authorized to allocate a 50 billion baht budget to assist those impacted by the floods, extending support to small SMEs and freelancers. This initiative offers loans with an interest rate not exceeding 3.5% per year for two years, enhancing liquidity for affected SMEs.

Mr. Sitthikorn emphasized the importance of comprehensive support for SMEs, including on-site visits to provide direct assistance. Financial advisors are ready to guide affected entrepreneurs, particularly freelancers, small businesses, and local vendors, on reviving their operations post-flood. This support is crucial for those who might otherwise resort to high-cost informal lending.

SMEs in designated flood-affected areas, as identified by the Department of Disaster Prevention and Mitigation, and those seeking assistance through the
SME Bank’s guarantee mechanism, are encouraged to seek more information at local district offices. Additional details are also available via LINE OA TCG First: @tcgfirst or the SME Bank Call Center at 02-890-9999.