1. Beneficiaries of the Collateral Act
Borrowers
Lenders
The National Economy 1

2. 70% of SMEs have no access to finance2

3. SMEs with substantial financing requirements
There are three main types of SMEs with substantial financing requirements:
Start-ups
Disrupted businesses
Businesses in need of rehabilitation 3

4. Government launches measures to assist and develop SMEs
In 2018 there are three new loan projects totalling over Bt.78 billion.
The Local Economy Loan programme focuses on helping entrepreneurs in the international and local tourism sectors and agricultural processing. Loans are capped at Bt.5 million. For the first three years interest is charged at 3% p.a. No commissions for first four years providing Small Industry Credit Guarantee Corporation (SBCG) is used.
“Transformation Loan” for renewal of plant and machinery. The maximum loan amount is Bt.15 million. “7: 1: 0” promotion. Seven means the loan is approved within 7 days, one means it is paid out within one day of approval and zero means no commission on trade receivables collections.
Micro-SME Rehabilitation Facility. The loan amount is up to Bt.1 million, supporting SMEs with insufficient funds and no access to finance that need to start or change a business. Loans can be applied for without any collateral. 4

5. Government launches measures to help and develop SMEs
Nine measures to remedy SME weaknesses
In addition to promoting the government's finances in supporting and developing SMEs, the government also focuses on "Micro-SMEs" through measures to strengthen them. There are nine measures to be implemented nationwide.
Expansion of 23 ITC Services nationwide to upgrade the innovation of SMEs to commercial production.
248 SME Support Centres to assist all units through digital. One-stop service.
Train the Trainers, to develop coaches to help SMEs adapt to the 4.0 era
SME BIG DATA develops SME database to reach 3 million SMEs
Big Brothers to connect SMEs with the global manufacturing chain.
Digital Value Chain pushing SMEs to link the value chain internationally
Enhance SME Strengthening Programme to prepare for access to funding sources and to improve and standardise accounting systems.
“SME Standard Up” Raises SMEs to appropriate standards, creating a system of standards.
Community Economic Growth. Creating jobs creates revenue opportunities for the grassroots. Large businesses helping to support local enterprises and communities. 5

6. Concerns regarding the new law
1. Loan approval process
takes longer than standard
2. Forced seizure of collateral
without providing a way out 6

7. Thank you 7