The Cabinet, during its meeting on 1 December 2020, approved more measures to help small and medium-sized enterprise (SME) operators through the Portfolio Guarantee Scheme, Phase 9. At the same meeting, more measures were also approved to help micro entrepreneurs under the Micro Entrepreneur Credit Guarantee Program, Phase 4.

 

Finance Minister Arkhom Termpittayapaisith said that, as the COVID-19 situation began to ease, several business sectors were starting to recover. However, many affected entrepreneurs, especially SME operators and micro entrepreneurs, are still unable to have access to financial sources.

 

The reason is that financial institutions are not confident about extending credit to them. The Cabinet, therefore, approved these financial measures to help both SME operators and micro entrepreneurs.

 

The Portfolio Guarantee Scheme, Phase 9, involves a fund of 150 billion baht to be offered by the Thai Credit Guarantee Corporation, which will guarantee credit up to 100 million baht for each SME operator. The guarantee period is not over 10 years. It is expected that at least 42,500 more SME operators will be given credit guarantees under this scheme.

 

The Micro Entrepreneur Credit Guarantee Program, Phase 4, involves a fund of 25 billion baht to be offered by the Thai Credit Guarantee Corporation, which will guarantee credit up to 500,000 baht for each micro entrepreneur. The guarantee period is not over 10 years. It is expected that at least 100,000 more micro entrepreneurs will be given credit guarantees under this program.

 

The Ministry of Finance believes that these measures will provide both SME operators and micro entrepreneurs with greater access to financial sources, so that they will be able to continue their businesses and become major mechanisms to push for the expansion of the Thai economy again.

 

Source: The Government Public Relations Department