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The SME Foundation has started work on finalising a policy on loan disbursement among pandemic-hit small and medium enterprises from the Tk 1.0 billion stimulus package by next June.
In its 15th annual general meeting on March 26, the foundation approved its draft policy to assess the needs of disbursement. It also started negotiations with its partner banks and financial institutions to sign an agreement.
"We are at a discussion stage with partner banks and FIs. We hope to come to an agreement within a week," said SME Foundation chairperson Dr Md. Masudur Rahman.
As the SME Foundation will have to disburse Tk 1.0 billion funds among SME entrepreneurs in next two months through them, he said, agreement and integration with banks and FIs are necessary.
The foundation would get its next instalment of Tk 2.0 billion in the next fiscal year, he also said, adding that the policy would help them disburse the funds efficiently.
According to SMEF officials, the policy has guidelines on fixing target groups and disbursement modalities.
It also helps the foundation set criteria of the affected-SMECs and help them in capacity building to get the loan easily.
The government had set a target to disburse Tk 20 billion in loan for SMEC under the stimulus package. Of the total, SMEF had been allotted Tk 3.0 billion to disburse among entrepreneurs under SMEC including women.
SMEF has been working to provide necessary support to entrepreneurs doing business under small to medium and cottage industries. It has so far helped 10,199 entrepreneurs including 4,507 women build businesses through market expansion and capacity building on various aspects in the FY 2019-20.
The SME chairman said the fund under Tk 3.0 billion would be disbursed among both men and women in rural and urban areas. Even startups would get priority under the package as per the government-announced policy.
SMEF maintains 26 per cent of total beneficiaries for women including those in remote areas, he added.
"We have already had an idea of needs for working more than 13 years at different clusters throughout the country. We expect to reach a good number of pandemic-hit entrepreneurs following well-design policy guidelines," he told the FE in a telephone interview last week.
SMEF General Manager Farzana Khan said the pandemic has created a new dimension in women entrepreneurship as many have either switched to new products or started new ventures based on e-commerce for their survival.
"SMEF will also try to find them and train them in continuing the ventures through package support."