Overview in general/other countries for Support and Assistance for SMEs

Entrepreneur from the impact of COVID-19.

Most countries have provided assistance in order to help SMEs due to the sheer of the

COVID-19 pandemic that they are currently facing. As citizen health is the main concern,

many initiatives are being done to minimize the economic impact due to COVID-19 on

economic sector. Governments all around the world are taking rapid steps to help SMEs and

self-employed worker throughout this tough period, with a particular focus on efforts to

maintain short-term liquidity. Some governments have focused on more broad-based

initiatives that have the ability to lessen the impact on economic. For example, federal banks

in most of the countries have intervened to encourage lending by improving monetary

conditions and allowing commercial banks to offer more additional loans to borrowers.

Most of the countries also introduced the SME specific policy measures which are

work time reduction and temporary layoffs. Likewise, governments provide salary and

income support to temporarily laid-off workers and enterprises in an effort to preserve

employment. In some situations, countries have enacted laws specifically aimed for e self-

employed. Some of the countries also implemented. To allow commercial banks to boost

lending to SMEs loan guarantees have been established and expanded in some countries

They've also increased direct lending to small businesses through state institutions.

Governments have also give grants and subsidies to SMEs and other businesses to help

facilitate the revenue gap.

For example, the country that gives support towards SMEs Entrepreneur is Argentina.

Argentina's Banco Nacion has launched EUR 43 million financing line for SMEs, with EUR

36 million going to companies that produce food, medical supplies, hygiene practices, and

vital commodities, for working capital and/or investments. Another EUR 7.2 million finance
line will be distributing solely for teleworking. On March 26 and 27 20202, the government

extended the repayment terms of SME debts and expanded its credit programme for SMEs to

cover employee salary. The government established a USD 453 million guarantee fund for

SMEs on March 31 2020.

The Productive Recovery Program (REPRO) will be enlarged to ensure employment

for people that working in companies affected by the health problem, meaning that the

government will cover a portion of the workers' wages. 350 billion pesos will be spent to

assure the production and supply of food and basic commodities, enhance activity, and

support the economy's operation. The rate of taxation on necessary overtime will be reduced

by 95%. Salaries of workers hired that address the requirements in the crisis time will be

reduced at a rate of 95 percent.

The other country that gives support and assistance for SMEs Entrepreneur is

Australia. COSBOA, an Australian business organization, prepared a manifesto outlining the

steps that must be taken to fight the outbreak. The manifesto contains references to financial

infusions, communication, and teamwork..  The government launched a AUD 18 billion

federal economic stimulus plan on 12 March 2020, which is containing initiatives to

encourage investment and provide cash flow support to small businesses.

The government announced an additional package of AUD 66 billion on 22 March

2020. The fund comprises a tax-free cash settlement of up to AUD 100,000 for enterprises

with annual revenues of less than AUD 50 million, as well as qualified not-for-profit

organizations.  The Australia government guarantee 50% of new loans provided to SMEs by

qualifying lenders under a new Coronavirus SME Guarantee Scheme. The facility's entire

lending limit will be AUD 40 billion (2 percent of GDP). Businesses having total credit

facilities of up to AUD 10 million would be permitted to postpone their loan repayments for

six months under a strategy proposed by the banking sector.

 On 30 March, the government announced its third package, which includes a new

wage subsidy plan. This package includes a AUD 1,500 per fortnight 'job keeper payment'

before tax for each employee that employers sustain over the following six months, which is

also offered to self-employed individuals. The administration introduced the addition of

business support measures on June 8.  The media outlets reported on the government's plans

for an additional AUD 10 billion recovery aid program for companies on July 3.

On July 6, new regulations were put in place to help small businesses save money on

their utility bills. Equipment upgrades, monitoring systems, and energy audits can all be

funded with up to AUD 20,000 from the Australian government for small businesses to

improve their energy efficiency. The Australian government created a website with

information for businesses on possible support measures and a helpline for small and

medium-sized enterprises. It has also been developed a COVID-19 planning tool for small

businesses

Support and Assistance for SMEs Entrepreneur in Malaysia from the impact of

COVID-19

In addition to lowering the policy rate, banks have established new financing options

for small and medium-sized businesses. All bank loans affected by the epidemic except credit

card debt have been temporarily suspended for six months, the Malaysian central bank

that declared on March 24 2020. More than two-fifths of this year's stimulus money will go to

small businesses, which will receive an additional $57 billion USD which was

the government revealed in a press release on March 27 2020. Bank Negara Malaysia (BNM)

has put a six-month suspension on all loan/finance repayments beginning on April 1, 2020

and ending on September 30, 2020 for all banks. The affected customers that meet the
requirements for loan are free from repayment during this time period, and no late fees or

penalties will be charged.

On April 6th, the government announced new steps to aid small and medium-sized

firms, as well as an enlarged wage assistance programme worth RM 10 billion (0.7 percent of

GDP). As a result of the 27 March and 6 April programs, SMEs can expect the following

measures which is ensuring that all enterprises with local employees that earn a monthly

salary of less than RM 4,000 receive wage subsidies. The Malaysian organization also has

announced approximately RM 13.8 billion for the wage subsidies. Besides that, RM2.1

billion PRIHATIN Special Grant also will be available to approved micro companies. Foe

each company will receive an RM 3,000 grant.

A six-month moratorium, the conversion of credit card debt to term loans, and the

reorganization of business loans will be offered by banking institutions. In April 2020, a

moratorium on loans from TEKUN, MARA, and cooperatives will be broadened to loans as

well as government organizations which provide funding to SMEs. Besides that, on April 1,

2020, the three-month suspension of all SMEs' income tax monthly payments begins. These

new measures come on top of the government's previously announced ones, which include a

six-month tax-deferred payout to companies affected because of tourism industry starting

April 1, 2020.

Rental rates can be reduced by urging private property owners to offer similar support

to their tenants. Business property owners who grant rent or rent reductions to SMEs during

or in the three months following MCO shall be liable to an additional tax deduction in the

amount of the rent reduction from April to June 2020. To qualify for this additional tax

reduction, the rent reduction must be at least 30% of the initial rent for the effective year of

assessment 2020. A 30-day suspension on the submission of statutory documents to

Malaysia's Companies Commission was in effect as of the last day of the MCO's deadline
(CCM). Financial statements must now be filed three months after MCO's effective date.

Companies with fiscal years ending September 30 to December 31 2019 are eligible for this

arrangement. There will be no penalty for submitting your documents after the deadline has

passed.