Tamkeen in coordination with various stakeholders including the Bahrain Chamber of Commerce and Industry is in talks on structuring rescue packages aimed at helping enterprises which have been worst hit by the crisis.
With the aim of supporting these firms that have been in business for at least one year, which have less than 50 employees and an annual turnover of less than BD 100,000, Tamkeen has announced a Support Fund Programme and set aside BD10 million to help these companies tide over their financial gaps and set course for a new period of business sustainability and growth.
The wide-ranging programme places no restriction on which enterprise can benefit – the targeted beneficiaries could already be a part of a current Tamkeen programme or new to Tamkeen’s support schemes. Initially, the programme is restricted to approximately 2000 beneficiaries.
“Our preliminary market study finds that the recent challenges in the region had an impact on the private sector and, as with all periods of uncertainty, the SMEs are the worst hit,” Shaikh Mohammed bin Essa Al Khalifa, Chairman and Acting Chief Executive, Tamkeen, said.
“Bahrain’s leadership is keenly aware that the business community’s well-being is the backbone of future prosperity and we have been inspired by the many incentives and rescue packages that the government has initiated, to draw up this Support Fund Programme. It will provide much-needed relief for SMEs and strengthen them and the Bahrain economy for the brighter days ahead. It is in line with other measures initiated such as the suspension of the BD 10 LMRA fees for every expat worker for the next 6 months and the suspension of the 5% training levy for the hospitality industry, in addition to the directives of His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa to the Central Bank of Bahrain to make it possible for banks to support the recovery of the business sector by offering easier terms of loan repayment. Through an independent agency, Tamkeen will carry out an assessment of the applicants’ financial status and provide the support to settle the payment of overhead expenses in accordance with three categories. Category 1 is targeting SMEs with Minimum information with a support cap of BD 3,500. Category 2 is targeting companies which provide evidence through In-house Accounting and this carries a support cap of up to BD 5,000. Category 3 is targeting companies which can provide audited accounts can request a support cap of up to BD 10,000. Through this approach Tamkeen would serve a wide range of SMEs with different needs. The financial support can be used for the following payments for covering the rent of the business premises; rental of vehicles which are used to execute the economic activity of the business; insurance premium for buildings, equipment, vehicle belonging to the economic activity of the business; utility bills inclusive of water and electricity, telecommunication; salaries of the workforce and GOSI fees for Bahraini workers.
“At this stage we are providing this programme with a substantial budget of BD10 million to extend support to SMEs in need and would also reignite the economy as the money would be circulated back into the economy. This fund will be closely monitored and assessed to ensure that it does meet the private sector’s needs and challenges,” added Shaikh Mohammed.
Applicants must provide the company CR and/or license, a copy of the owner’s CPR, bank statement and supporting documents proving inability to meet financial commitments.