Benefits of Financial Assistance for Small Businesses

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As a micro, small, and medium business owner, you know that financial assistance is very important. But how to get help from MSMEs? This is something you must know. It cannot be denied that as a result of the COVID-19 pandemic, quite a few businesses have felt disadvantaged.

The good news is that the government has a program to provide MSME assistance to business people. With this assistance, it is hoped that the economy can be rebuilt for MSME entrepreneurs. As a person who has trouble in capital, you might like to read this article.

So, how do you get MSME assistance from the government? See the complete explanation below, to help you know what to do and the benefits that you will get from the loans.

What is MSME Assistance from the Government?

Is a form of financial assistance from the government aimed at helping MSMEs. MSME assistance itself is in the form of cash for each business actor.

MSME assistance is provided to business owners to help MSME owners with their capital.

This MSME assistance certainly has great benefits for business people. One of them is to add additional capital so that MSMEs can make improvements in several sectors.

Terms and Ways to Get MSME Assistance from the Government

It turns out that business actors who are entitled to receive MSME assistance are not just anyone. Some conditions must be met as a way to get MSME assistance from the government. These conditions include:

  1. Having a micro or small business whose existence and authenticity can be proven. Of course, by having an official business license.
  2. Not currently in debt to the bank.
  3. You are old enough and already have an official identity.
  4. Have clear goals regarding the business that will be or has been run.
  5. This is a legal business and has clear and official permits.

How to Apply for MSME Assistance

The institution authorized to propose the fund is the Department or Agency in charge of Cooperatives and Micro, Small, and Medium Enterprises at the Regency or City level.

For those of you who want to register as a candidate for aid recipients, the way to register for MSME assistance is as follows:

  1. Register with the relevant department.
  2. Prepare the required documents, then your full name, address, telephone number, and business identity.
  3. The relevant department will process and verify
  4. You can monitor the status of application receipt via the channeling bank’s website

Then the MSME assistance will be distributed to business actors who meet the requirements of the aid distributor.

Recipients of MSME grant funds are not charged any fees. Later, the distributor will provide information regarding MSME micro-enterprise assistance to those who are entitled to receive it.

If you don’t have an account at one of the channeling banks, an account will be created when you make the disbursement by the channeling institution.

Benefits from Assistance Funds Provided by the Government to MSMEs

Several benefits can be obtained by small businesses that have received financial assistance from the government and below we will explain some of them. the benefits that MSMEs can receive.

Low Loan Interest Rates

Since the Government inaugurated this loan program, most MSME entrepreneurs have been able to develop their businesses without having to worry about being ‘haunted’ by interest rates that are too high and burdensome. With interest rates ranging from 2% – 6%, this government loan program feels more ‘friendly’ for MSME owners. Therefore, government loans are very suitable to help improve the economy and run their businesses smoothly.

Read also : 7 Tips for Successful Debt Management

Loan Limits Are Quite Large

There are not many services providing such large loan funds. Banks may be able to provide funds of that amount, but the interest rates given are much higher. With these advantages, you can have more freedom to develop your business optimally and in line with expectations.

Quite A Long Repayment Tenor

For example, you apply for a loan of 100 million. If we use this government program with a tenor of 5 years, then you only need to pay 2 million in installments every month. Feels light, doesn’t it?

The convenience offered by loans from the government will make your business run more smoothly. You can slowly pay the monthly credit while waiting for your business to return on capital.

Submission Requirements Tend To Be Easy

You don’t need to be confused about the requirements for applying for a government loan. The application requirements are quite easy and not complicated. You just have to come to the nearest People’s Business Credit service provider. Bring identification, family card, and taxpayer information. Apart from that, you are also required to have and bring a Business Certificate (original), a 4×6 photograph, and a photocopy of your marriage certificate (for those who are married).

Loans Can Be Applied For Without Collateral

As mentioned above, to apply for a government loan we need to provide collateral. However, several types of loans do not require property collateral. Examples include Micro, Super Micro, and Small loans. This type of loan can be applied for by providing photocopies of important documents, such as identity cards and business certificates.

These are some of the benefits you can get from the government loan program. So, for those of you who are MSME owners, government loans are the best option to choose if you need additional capital for your business.

Government loans are much more profitable for small entrepreneurs and provide better opportunities to expand their businesses.

When your small business experiences difficulties, like some sort of finances and capital, then it’s a good idea for you to immediately apply for financial assistance from the government. This government program will have a good and positive impact on you as a business owner.

These are some things you should know if you want to apply for a capital loan from the government. The method is quite easy and many benefits are useful for advancing the business you are pursuing.