Local small and medium-sized enterprises (SMEs) have submitted applications worth a combined 34.3 billion baht for government loans through the Small and Medium Enterprise Development Bank of Thailand (SME Bank), says the Industry Ministry.
These loans are part of the government's first 78-billion-baht SME soft loan package it accelerated for launch in 2018.
The soft loans scheduled to be issued this quarter have been divided into three programmes.
The local economy loan programme will receive 50 billion baht, the transformation loan initiative will get 20 billion to upgrade machinery and the micro-SME scheme will receive 8 billion.
Deputy Industry Minister Somchai Harnhiran said the government has not set a deadline for these financial measures, so SMEs can keep applying until the funds run out.
"But the ministry can increase the funds' maximum level if there is SME demand," he said.
Mr Somchai said the 78-billion-baht budget covers measures previously outlined for SMEs, with a combined value of 240 billion, which the cabinet approved on Dec 19.
The budget will be passed on to state-owned financial institutions such as Krungthai Bank (KTB), Government Savings Bank (GSB), the Export-Import Bank of Thailand (Exim Bank), Bank for Agriculture and Agricultural Cooperatives (BAAC), and SME Bank.
Another 50 billion baht in soft loan packages will be offered by KTB, on top of 40 billion from GSB, 15 billion from BAAC and 5 billion from Exim Bank.
Thailand has 3 million SMEs that employ 11 million people, accounting for 99.7% of businesses. The ministry forecasts the new SME measures will help beef up the country's economy.
Meanwhile, Mr Somchai said Deputy Prime Minister Somkid Jatusripitak will visit the ministry today to meet with high-ranking executives, including Industry Minister Uttama Savanayana.
"The ministry will propose including the biochemical sector in the S-curve policy as it fits within the 10 targeted industries," he said.
"We will soon forward the proposal to the cabinet."
The ministry will also work with Internal Security Operations Command to promote its Creative Industry Village (CIV) scheme.
The CIV is a 22-billion-baht state project intended to help villages, SMEs and farmers increase their income under the Pracha Rat (People's State) initiative.
The ministry aims to develop 160 villages in 76 provinces under the CIV.
