SME Development Finance Corporation (SDFC) has issued a total of USD24 million worth to micro, small and medium enterprises (MSMEs) under its COVID-19 relief packages.
Speaking to PSM News, SDFC stated that USD24 million in loans have been issued to SMEs since the beginning of the pandemic and that most of the loans were disbursed to the commerce sector. As such, loans were issued to 822 businesses in the sector, while loans were issued to 671 businesses in the manufacturing industry.
Additionally, SDFC issued loans to 232 businesses in the tourism sector, 198 businesses in the construction sector, and 111 businesses in the information and communications technology (ICT) sector. Loans were also issued to 20 individuals in the fishing sector and 14 individuals in the agricultural sector. SDFC issues 25% of its loans to women-owned businesses and also prioritises the youth and people with disabilities when issuing loans.
In 2020, SDFC began issuing special loans to assist the business enterprises hit by the COVID-19 pandemic under the government economic recovery package. The loan from SDFC are issued with an interest of 6% to be paid within a period of 3 years.
SDFC was established in 2019 as a specialised financial institution providing financial products and ancillary services to MSMEs and entrepreneurial start-ups with the primary purpose of easing access to finance for MSMEs. It was formed as a 100% state-owned company.