"Social Security - EXIM Bank - UOB" Launches Employment Loans to Accelerate Economic Recovery for Businesses Affected by COVID-19

On August 18, 2020, Mr. Suchart Chomklin, Minister of Labor, announced that the government, under the leadership of Prime Minister General Prayuth Chan-o-cha, is prioritizing the country's recovery efforts, especially in revitalizing the economy as the COVID-19 situation improves. The policy "Unity for National Development" has been implemented to unite all sectors in planning for Thailand's future. Moving forward, the government aims to engage all sectors and levels of society to play a more active role in shaping the country's future, particularly in alleviating the hardships faced by the public, especially SMEs affected by the pandemic and those who have lost their jobs. Additionally, there is a focus on motivating businesses to maintain their workforce and to use this time to transform their organizations into more efficient and competitive entities.

Mr. Suchart further stated that the Ministry of Labor, through the Social Security Office, has launched a loan program to promote employment. The Social Security Office will collaborate with financial institutions to provide low-interest loans totaling 30 billion baht to businesses. This program will involve agreements with participating commercial banks, where the Social Security Office will support deposits for banks to offer loans at a fixed interest rate of 3% per annum for secured loans and 5% per annum for unsecured loans. Businesses applying for loans must have been registered with social security for at least three months and must maintain an employment rate of at least 80% for insured employees for three years. Applications can be submitted until December 31, 2020, with 18 billion baht allocated for businesses with fewer than 50 employees eligible for loans up to 5 million baht, 9 billion baht for businesses with 51 to 200 employees eligible for loans up to 10 million baht, and 3 billion baht for businesses with over 201 employees eligible for loans up to 15 million baht.

“Interested entrepreneurs can request a certificate of business status from any Social Security Office in Bangkok or provincial branches to apply for loans with participating banks, including the Export-Import Bank of Thailand (EXIM Bank) and UOB Public Company Limited, from now until December 31, 2020. This measure will help provide working capital and enhance liquidity in businesses, maintain employment levels, and contribute to circulating capital within the domestic economy, thereby developing the overall economy of the country,” Mr. Suchart concluded.

SOURCE : www.bangkokbiznews.com