Business Recapitalisation Facility

This scheme is a funding program designed to support Malaysian SMEs in improving their capital structure by managing their debt-to-equity ratio through capital expenditure. It is accessible to all SMEs seeking financing under the Business Recapitalisation Facility (BRF) provided by Bank Negara Malaysia (BNM) and is available through selected Participating Financial Institutions (PFIs).

Objectives:

• To assist SMEs in enhancing their capital structure.
• To enable SMEs to manage their debt-to-equity ratio effectively.
• To support working capital and capital expenditure needs.

Target Beneficiaries:

• SMEs across various sectors.
• Business types including Sole Proprietorships, Partnerships, Limited Liability Partnerships, Private Limited Companies, and Professional business entities.
• Businesses locally incorporated or registered in Malaysia with at least 51% Malaysian shareholding.
• For the Islamic guarantee scheme, businesses must maintain Shariah compliance throughout the guarantee tenure.

Key Features:

• Financing purpose covers working capital and/or capital expenditure.
• Guarantee amount up to RM4.0 million per SME.
• Guarantee period up to 10 years.
• Guarantee coverage ranges from 30% to 80% or up to RM4.0 million per SME, whichever is lower.
• Corporation charge at 1.50% per annum.
• Financing profit rate up to 5.00% per annum inclusive of guarantee fee.
• Refund of corporation charge processed on a pro-rated monthly basis upon termination or amendment of guarantee.

Application Process:

• SMEs apply for financing through selected Participating Financial Institutions.
• SMEs can apply for a CGC guarantee linked to their financing at these PFIs.
• The scheme includes comprehensive coverage such as Term Financing, Cash Line Facilities, and Trade Facilities.