Here’s a bit of good news for all Social Enterprises. If you are a registered social enterprise or are eligible for social enterprise registration, then we have a message for you!
Budget 2020, a budget released by the Malaysian government in October 2019, announced a fund allocation of RM10million specifically for social enterprises. The requirements are that you need to be registered as a social enterprise with the Malaysian Global Innovation and Creativity Centre (MaGIC). This initiative was originally put forth as an effort to modernise entrepreneurship through digital technology.
As a result, we have come up with a special financing programme specifically for these companies. Apply for business financing with us and enjoy up to 50% off in interest rates!
Before you apply: here are a few FAQ’s that you might find helpful!
What is Social Enterprise?
As per the definition by the Ministry of Entrepreneur Development, Social Enterprise (SE) is a business entity that is registered under any written law in Malaysia that proactively creates positive social or environmental impact in a way that is financially sustainable.
To be eligible and recognised as a Social Enterprise, you would need to fulfil at least 1 or more of the 17 Sustainable Development Goals. These goals were set up by the United Nations as a blueprint to achieve a better and more sustainable future for everyone.
The Goals are as follows;
Learn more about these Goals here.
How to register as a social enterprise?
Download the guideline here.
How does MyCIF Social Enterprise scheme work?
MyCIF will co-invest on a 1:1 basis, i.e. MyCIF will co-invest RM1 for every RM1 successfully raised from private investors, up to RM500,000 via P2P financing platform. To further help reduce the cost of financing for Social Enterprises, MyCIF will forgo its share of interest or returns.
For example, if social enterprise A has passed the credit assessment and has been approved a financing amount of RM1 million at a 10% interest rate p.a., with a tenure of 12 months, MyCIF will co-invest on a 1:1 basis with the other investors up to RM500,000 which allows social enterprise A to enjoy RM500,000 with zero interest, while the other RM500,000 will be financed to social enterprise A at an interest rate of 10% p.a. via P2P financing platform.
All in all, social enterprise A only pays interest rate equivalent to 5% to the overall RM1 million financing!
How do I get the 50% interest off of financing?
Once your company has been approved by MaGIC as a Social Enterprise, you can then reach out to Funding Societies to apply for financing or by clicking the link below.
Plan to diversify your investment portfolio? Click here to start your investment with Funding Societies Malaysia.
Need funds for your business? Click here to register and check your eligibility.
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