The BSCIC authority has recommended that the government provide working capital for bona fide entrepreneurs to offset their possible financial losses caused by coronavirus pandemic, an official said.
The Bangladesh Small and Cottage Industries Corporation (BSCIC) sent its 16-point recommendation to the Ministry of Industries (MoI) last week.
It recommended providing loans for the entrepreneurs of the SME and cottage industry sector at low interest rates to overcome the losses caused by Covid-19 disease.
The BSCIC has prepared the recommendations in line with the government-announced Tk 200 billion working capital or loan at low interest rate for the sector.
"We have sent 16-point recommendation to the industries ministry for taking steps to provide loans for saving the SME and cottage industry sector from the coronavirus devastation," BSCIC chairman Md Mostaque Hassan, ndc told the FE on Saturday.
Earlier, Prime Minister Sheikh Hasina announced a total of five loan incentives packages in April to save the country's economy including the SME and cottage industry from disastrous impacts of coronavirus.
The package-2 suggested providing Tk 200 billion as working capital at low interest rates for small and medium enterprise (SME) including the cottage industry.
The recommendations made by the BSCIC are: selection of SME and cottage industry entrepreneurs on the basis of criterion of National Industrial Policy-2016, formulation of easy understandable guidelines for providing collateral- free loans for the entrepreneurs including women ones simply based on a uniform application to the authority for loan.
Providing loans for at least five years including six- month or one-year grace period, ceiling of sector-wise loan disbursement in line with the Bangladesh Bank's circular on September 05, 2019 for cottage, micro, small and medium enterprises (CMSME).
Providing loans for the entrepreneurs by micro-credit institutions like Palli Daridra Foundation, department of co-operatives, Palli-Karma Sahayak Foundation, SME Foundation and the department of youth development (approved by the Micro Credit Regulatory Authority).
The BSCIC also suggested providing loan/ working capital to the industrial units like light engineering, leather and leather goods, printing industry, plastic industry and others on the basis of recommendations jointly prepared by BSCIC authority and entrepreneurs associations.
It also suggested a joint recommendation from the deputy commissioners, district chambers and associations to help provide loan/ working capital for the industrial units located outside BSCIC industrial estate in the districts.
The recommendations include selection of a bank (among public and private banks) in the district as SME Lead Bank to coordinate with other banks SME loan disbursement activities including policies, formation of a national committee with the representation of Bangladesh Bank, FBCCI, SME Foundation and BSCIC for providing working capital or loan under incentives packages declared by the Prime Minister and formation of a coordination committee to oversee the loan distribution activities at district level.
The chairman of BSCIC recommended the MoI hold a consultative meeting with all stakeholders including SME Foundation, Bangladesh Bank and entrepreneurs of SME and cottage industry sectors so that disbursement of working capital or loans could reach deserving entrepreneurs.
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