Special fund to start community businesses
The Government Savings Bank has set aside a Bt35-billion fund for lending to community enterprises as a way to increase the access of these enterprises to low-interest funds.
The scheme was launched yesterday in an agreement between the bank, the Agriculture and Cooperatives Ministry and the Thai Youth Farmers Support Foundation. The money will be offered as loan finance to 40,000 community enterprise clubs around the country as working capital to start businesses. It is expected that as many as 9,000 of the clubs will join the scheme within three years. The bank's president and chief executive, Goanpot Asvinvichit, said the community enterprises were entitled to loans up to Bt500,000, but those demonstrating good business potential could get up to Bt1 million. They will be charged an annual interest rate of 6 per cent over a five-year loan period. The Agriculture Department will screen applicants, and only those community enterprises passing its scrutiny will gain access to the funds. The enterprises will have to operate under His Majesty the King's sufficiency-economy philosophy. Agriculture Minister Thira Sutabutra said the project aimed to strengthen the competitiveness of small community businesses, not only by providing low-interest funds but also by providing knowledge on accounting systems, business management and risk management.
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