Eligibility for maximum coronavirus loan amount can vary on workforce: UMFCCI

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The eligibility for the maximum amount of emergency Coronavirus Fund to enterprises hit hard by the pandemic can vary depending on the workforce in factories, said UMFCCI General Secretary U Aye Win.
“There are three categories in the loan, designated in priority sectors (the small and medium enterprises (SEMs), hotel businesses and CMP garment factories). Majority of the applications are from SMEs, followed by the hotel businesses and CMP garment factories.
However, CMP garment factories received the highest loan amount as they are labour-intensive businesses. SMEs with the small number of workers get access to small amount only,” he stated at the recent press conference of UMFCCI.
The emergency coronavirus loan aims to ease the economic burden faced by the virus-stricken businesses, and not to expand the business and put capital for businesses. Mainly, the government intends to help the business keep operations and the workers get the salary for at least three months, he continued.
Some bigger businesses employ a smaller number of workers against CMP garment factories. This being so, they are eligible to receive an only smaller amount of loan.
So far, the government has contributed K13 billion loans to 300 businesses. The remaining applications will be screened so fast that the business can take the loan in May-end.
The loan applications were accepted between 30 March and 9 April and a total of 4,258 applicants applied for it. Initially, 300 businesses are provided loan and more businesses will be granted loan soon.
The loan will be provided to enterprises that are included in the priority sectors at an interest of 1 per cent for a one-year period.
If a business entity fails to repay the loan it can be put in the Negative List of the Credit Bureau and can be barred from taking any loans from a bank or a non-bank financial institution or a microfinance institution.—Myint Maung Soe (Translated by Ei Myat Mon)

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