KUALA LUMPUR: The East Coast Economic Region Development Council (ECERDC) has embarked on a new initiative to enhance loan funds for its entrepreneurs under the newly-launched "Bumiputera Commercial and Industrial Community (BCIC) and SME Leveraging Fund".

The revolving fund will be used to top up the difference between the commercial interest rates imposed by commercial banks and interest rates intended for ECER's Entrepreneurship Development Programme (EEDP).

The implementation of the fund was formalised yesterday at a signing ceremony between ECERDC, Agrobank and Sirim Bhd.

It was witnessed by Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop.

The agreements were signed by ECERDC CEO Datuk Jebasingam Issace John, Agrobank CEO Wan Mohd Fadzmi Wan Othman and Sirim Bhd acting president and chief executive Dr Zainal Abidin Mohd Yusof.

With the agreement, Agrobank will assist all EEDP entrepreneurs shortlisted by ECERDC and Sirim with regard to their soft or micro loan applications. Agrobank will offer to EEDP entrepreneurs a special interest rate, using the topping up mechanism by ECERDC.

Sirim, meanwhile, will develop and implement projects under the EEDP. 

Both Sirim and ECERDC will select entrepreneurs and provide training for programmes as well as assist entrepreneurs in certification and marketing.

Nor Mohamed said as ECERDC's partner, Agrobank, will be continuing its mandate to encourage entrepreneurship and tap into government funds which include Fund for Food, Agriculture Entrepreneurship Funds and Youth Trade Fund.

Issace said deserving candidates will be selected by Sirim, while, Agrobank will do the loan evaluation, adding that at least 200 BCIC entrepreneurs and SMEs from ECER will benefit from the fund in two years.

He said ECERDC will provide RM10 million to the fund while Agrobank is targeting to disburse between RM27 million and RM30 million worth of financing to selected entrepreneurs.

Wan Mohd Fadzmi said Agrobank will provide SME loans of between RM50,000 and RM250,000, as well as micro credit loans of up to RM50,000 to entrepreneurs with a maximum tenure of 60 months in ECER's key sectors.