MEDAC entrepreneurs affected by floods eligible for fund and moratorium


THE Ministry of Entrepreneur Development and Cooperatives (MEDAC), through its agency Tekun Nasional, has allocated RM30 million as a post-flood relief initiative for informal and micro-entrepreneurs.

Minister Tan Sri Noh Omar (picture) said the allocation is to help ease the burden of informal and micro entrepreneurs, especially those affected by the flood disaster.

“This time Tekun Nasional also offers business rehabilitation financing under the Informal Financing Scheme and Micro (SPIM) with a financing value of up to RM10,000 without profit charge.

“Entrepreneurs will also enjoy a moratorium for 12 months,” he said in a statement yesterday.

Since January 2021, a total of 14,906 entrepreneurs have applied for SPIM worth RM133.1 million, with 304 applications worth RM2.9 million from flood-affected entrepreneurs.

“In addition, of the total, 2,825 SPIM applications have been approved with a value of RM23.8 million. This value includes RM1.62 million of financing and has also been approved to assist 179 flood-affected entrepreneurs,” he added.

All informal and micro entrepreneurs can apply for SPIM funding. Businesses affected by Covid-19 can apply for SPIM and utilise the fund as a capital injection, rehabilitate and resume their operations.

“For rehabilitation purposes, SPIM offers businesses working capital, purchase of equipment, salary payments, rent payments, utility bills and other related matters,” he said.

“Tekun Nasional has initiated the existing Tekun entrepreneurs who were affected by the floods with a moratorium for six months from December 2021 to May 2022, with an estimation of RM7.2 million for this purpose,” Noh added in the statement.