Many businesses have been adversely affected by the ongoing pandemic. Some initiatives have been taken to reduce this impact such as the wage subvention and hiring incentives.

Last year, two programs were introduced for micro-businesses: the Informal Financing Scheme (SPIN) as well as the Covid Business Recovery Financing Scheme (CBRM). This week, a second round of these programs will be launched. Here’s the information you need if you are a micro-business owner and want to apply for financial reliefs.

What is a micro-business?

Before applying for these reliefs, ensure your business is eligible. A micro-business is one that employs fewer than 10 people and works with limited capital. This could include entrepreneurs who own a food stall or independent contractors who operate small online businesses.

If you are a microbusiness owner, you can apply for financial reliefs. Here’s what these financial reliefs are all for.

Informal Financing Scheme 2.0 (SPIN 2.0)

SPIN is also the name of the first initiative, which is known as Informal Financing Scheme. It is available to owners of businesses who are not registered with the Companies Commission of Malaysia/Suruhanjaya Syarikat Malaysia , or without a license issued by a valid Local Authority.

SPIN was launched for the first time in December 2020. According to the scheme, funding has been awarded to 3,369 individuals in total for RM19.8 millions.

SPIN 2.0 will replace the old one and be smoother and more efficient. SPIN 2.0 allows you to get a maximum amount of financing at RM10,000.

You will need to meet certain criteria, including being a Malaysian citizen and not having been in bankruptcy. Here are the rest of the requirements and application forms.

Covid Business Recovery Financing Program 2.0 (CBRM2.0)

CBRM was introduced via the PRIHATIN Package in April last year. It is also managed by TEKUN Naional, which manages the SPIN program. TEKUN has provided support to 26,326 entrepreneurs under CBRM 1.0.

If you successfully apply for CBRM 2.0, you can get financial assistance up to RM20,000 .

This financial relief, unlike SPIN, is only available to businesses registered with the Companies Commission of Malaysia/Suruhanjaya Syarikat Malaysia or with a valid license from a Local Authority.

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