Tamkeen lifeline for 10,000 businesses

MORE than 10,000 small and micro enterprises have received financial support from Tamkeen amid the coronavirus disease (Covid-19) pandemic.

The aid was part of Tamkeen’s Business Continuity Support Programme launched last month with an estimated budget of BD40 million to support small and micro enterprises impacted by Covid-19, with the aim of supporting 20,000 enterprises.

According to Tamkeen chief executive Dr Ebrahim Janahi submission for the programme concluded yesterday and work is underway to evaluate the enterprises that submitted applications according to the programme’s targeted groups and terms.

“As part of the evaluation process, Tamkeen is keen on assessing the extent of the damage and impact on the enterprise and accelerating the payment process especially in the kingdom’s most impacted sectors due to the implementation of the precautionary measures,” he said in a statement yesterday.

“The evaluation process continues on a daily basis to meet the needs of small and micro enterprises for financial aid as quickly as possible with the value of support ranging from BD1,050 to BD12,000 based on the size of the institution’s workforce.”

He revealed that the aid will be given over a period of three consecutive months provided that each enterprise completes the requirements for each monthly payment by attaching a receipt of monthly expenses on the electronic portal.

According to Dr Janahi, work is in full swing to provide all opportunities available to support impacted enterprises as well as business owners along with taxi and bus drivers, driving instructors, as well as kindergarten employees.

“National efforts are underway diligently to serve and benefit the largest possible segment of those affected within the available budget especially with the Tamkeen budget being fully directed within the programme,” he added.

“This means that total liabilities exceed revenues at the present time – especially with the suspension of all labour market fees for three months – which is usually pumped in the form of various development programmes through Tamkeen.

“This emphasises the need to optimise the use of support opportunities and contribute to supporting only a portion of the operating expenses of the largest possible segment of institutions.”

Tamkeen also stated that they will expedite payments to businesses operating in heavily impacted industries.

According to Dr Janahi, Tamkeen is working diligently to maximise beneficiaries, allocating its budget to the Business Continuity Support Programme.

This has resulted in total liabilities exceeding revenues, especially considering the suspension of labour market fees for a period of three months, a main source for Tamkeen’s various development programs.

Dr Janahi reiterated that this programme focuses on supporting small and micro enterprises that are affected by the repercussions of Covid-19 by helping them partially cover their operational expenses.

The GDN previously reported, on May 6, that more than 1,600 applications filed by business owners seeking financial support amid the pandemic have been dismissed.

The applicants did not meet the requirements as they were medium or large enterprises that could benefit from the BD200m Liquidity Support Fund, which was launched in partnership with a number of local banks.

Applications were evaluated based on the size of the company and the programme aims to help small and micro enterprises that are among the worst affected by providing them financial grants to cover part of their operational costs. The programme also covers financial support for taxi drivers, driving instructors and kindergarten workers who are not registered under the Social Insurance Organisation.

The initiative is part of the government’s BD4.3 billion stimulus package to offset the financial impact on businesses and individuals due to the pandemic – and is equivalent to 29.6 per cent of Bahrain’s annual gross domestic product (GDP).

 

Source: http://www.gdnonline.com/Details/822672/Tamkeen-lifeline-for-10,000-businesses

 

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