Flood Relief Loan Guarantee Scheme (FRLGS)
  • Name of Scheme
    Flood Relief Loan Guarantee Scheme (FRLGS)
  • Scheme Limit
    RM500.0 Million only
  • Objective
    To help SME companies revive businesses that have been affected by the recent floods in the districts defined by Majlis Keselamatan Negara, Jabatan Perdana Menteri as flood disaster areas and as listed below:
    Batu Pahat, Kluang, Kota Tinggi, Kulaijaya, Ledang, Muar, Pontian and Segamat
    Bandar Baharu, Kota Setar, Kubang Pasu, Kulim, Padang Terap and Pendang
    Bachok, Gua Musang, Jeli, Kuala Krai, Kota Bharu, Machang, Pasir Mas, Pasir Puteh, Tanah Merah and Tumpat
    Bera, Jerantut, Kuantan, Lipis, Maran, Pekan, Rompin and Temerloh
    Hilir Perak, Hulu Perak, Kerian, Kuala Kangsar, Manjung and Perak Tengah
    Kota Belud, Kota Marudu, Kudat and Pitas
    Kuching, Limbang, Mukah and Samarahan
    Besut, Dungun, Hulu Terengganu, Kemaman, Kuala Terengganu, Marang and Setiu
  • Eligibility
    SME companies across all sectors incorporated under the Companies Act 1965 with at least 51% shares held by Malaysian and shareholders' fund below RM20.0 Million
    Follow the new guideline on definition of SMEs published and endorsed by SME Corporation Malaysia and National SME Development Council respectively
  • Financing Limit
    Minimum: RM50,000.00 only
    Maximum: Aggregate financing of RM2.0 Million only per company
  • Purpose of Financing
    For working capital, operating expense (OPEX) as well as for capital expense (CAPEX) to purchase equipment damaged. The facility cannot be used to refinance existing facility granted by the same or other Financial Institutions.
    The participating Financial Institutions and SJPP will be responsible for determining the genuineness of the Borrower based on their credit evaluation policies and procedures.
  • Interest Rates/ Profit Rate/ Commission/ Fees
    To be determined by the participating Financial Institutions
  • Source of Funds
    From the participating Financial Institutions
  • Guarantee Coverage
    70% by the Government of Malaysia on Financing Facility granted by the participating Financial Institutions
  • Guarantee Fee
    0.5% per annum payable upfront
  • Tenure of Financing Facility/ Guarantee Tenure
    Up to 5 years or until 31st December 2020, whichever is earlier
  • Availability/ Application Period
    Application is open for a period of six (6) months from 1 April 2015 or upon approval of financing up to Ringgit Malaysia Five Hundred Million (RM500 million) only, whichever is earlier
  • Participating Financial Institutions
    Open to all local and foreign financial institutions including development financial institutions under the purview of Bank Negara Malaysia