The Credit Guarantee Corporation (CGC) has announced its 2018 policy and operational plan, focusing on supporting SMEs in accessing loans with a guarantee target of 110 billion baht.

          Mr. Nithith Manunporn, Director and General Manager of the Credit Guarantee Corporation (CGC), revealed the policies and operational plans for 2018, which include four strategies aimed at assisting SMEs in all aspects, covering loan guarantees and providing financial consulting services to all groups of SMEs.

The target for loan guarantees this year is set at 110 billion baht, helping 99,306 new entrepreneurs access loans, with a goal of promoting micro SMEs to access loans and guarantees of no less than 73% of the total guarantees (LG).

          Additionally, this year, the CGC will expedite the Micro Entrepreneurs Loan Guarantee Project Phase 3 with a budget of 15 billion baht to be completed by the second quarter, while also pushing forward the PGS7 loan guarantee project in tandem, as it is a continuation of government policy. The CGC aims to present this to the Ministry of Finance and the Cabinet for consideration, with an expected launch in the third quarter. Both projects play a crucial role in driving the national economy, particularly the loan guarantee project for small SMEs, which provided assistance and support to grassroots entrepreneurs, achieving the highest success in 2017, with over 100,000 loan recipients and guarantees as of December 31, 2017.

Furthermore, the CGC aims for the loan guarantee ratio for the Micro group to be no less than 73% of the total items to support the growing demand for micro loans and guarantees, ensuring that assistance is distributed widely, in line with the increase in the number of SMEs nationwide, which currently stands at 3 million.

      Recently, the CGC announced the Single Guarantee Limit (SGL) for SMEs participating in the Micro Entrepreneurs project, setting a cap on loan guarantees for SMEs at 500,000 baht per entity across all Micro Entrepreneurs guarantee projects with all financial institutions, to maximize the distribution of guarantees to small entrepreneurs.

As for the loan guarantee project for the Non-Bank group, which is a new guarantee portfolio, significant progress has been made, particularly in studying suitable models to benefit SMEs and partner banks participating in the project, with expectations to launch the project within this year.

Launching the “SME Advisory Center for Accessing Funding Sources”

        This year’s key policy also emphasizes more proactive work, utilizing the potential of branch offices to their fullest. The CGC plans to elevate all 11 branches to become “SME Advisory Centers for Accessing Funding Sources.”

  The CGC has prepared experienced staff in each area, who are experts in providing consulting on accessing loan sources, as well as knowledge on preparing loan applications with banks participating in the CGC's loan guarantee program. The “SME Advisory Center for Accessing Funding Sources” will serve as financial mentors for SMEs seeking loans from banks, with the CGC currently partnering with 19 banks in the loan guarantee program.

        The expansion of branch roles into “SME Advisory Centers for Accessing Funding Sources” aims to address the needs of SMEs who inquire about the criteria and conditions for applying for loans under the CGC's guarantee program through branch offices, online channels, and social media. This initiative is designed to allow SMEs to utilize services before applying for loans from banks. The CGC expects to implement this by the second quarter, along with awareness-building activities, including an Open House event in March.

        This year, the CGC will also elevate its annual event, the “Funding Access Fair,” which is held every year and attracts interest from SMEs, partner organizations, government agencies, and partner banks involved in the loan guarantee program. This year, the event format will be modified to invite customers who have received loan guarantees from the CGC from all areas to showcase local products and achievements at the event, starting from March onwards.