Bangkok: SME Bank has significantly supported small and medium-sized enterprises (SMEs) by providing guarantees worth nearly 20 billion baht in the first half of the year.
According to Thai News Agency, the government has emphasized its commitment to assisting SMEs, with recent efforts from SME Bank aiding 21,000 small businesses through loan guarantees totaling almost 20 billion baht from January to June 2025.
Mr. Jirayu Huangsap, spokesman of the Prime Minister's Office, highlighted the government's focus on enhancing the efficiency of about 75% of Thai SMEs. The administration, in collaboration with the Ministry of Finance, has implemented policies to promote sustainable business practices. The Small Industry Credit Guarantee Corporation (TCG) reported that these measures resulted in economic benefits exceeding 80 billion baht, with 21,348 small SMEs benefiting from loan access.
The distribution of loan guarantees shows that 81% went to Micro SMEs, with an average guarantee of 140,000 baht per person, while 19% went to general SMEs, with an average guarantee of 4.25 million baht per person. This initiative has facilitated loans exceeding 26 billion baht, preserved around 188,000 jobs, and generated economic benefits worth over 80.4 billion baht. The top sectors receiving these guarantees include services, food and beverages, and agriculture, accounting for half of the total guarantees. These sectors are pivotal in driving the country's economy, particularly the tourism, agriculture, processed food, and medical and wellness industries.
Mr. Jirayu mentioned the 'SME Sustainable TCG' project, which guaranteed 38 billion baht from July 2024 to June 2025, aiding 48,000 SMEs, 74% of whom were new to TCG services, and 86% were Micro SMEs. This project successfully supported vulnerable groups, such as small traders and freelancers, in accessing loans despite challenges like lack of collateral.
In the second half of the year, the government introduced 'special measures' under the 'SBAC Ready to Guarantee' initiative, with a 50 billion baht budget aimed at further supporting SMEs. This includes projects like the SME Power Trade and Biz Loan Guarantee Project, providing 3 billion baht in credit, and the SME Micro Biz Loan Guarantee Project, offering 2 billion baht in credit. These projects are designed to support small groups, online traders, and freelancers needing working capital.
Mr. Jirayu emphasized that these projects offer free guarantee fees for the first three years, with subsequent fees at 1.5% per year, and provide guarantees for up to seven years. This approach aims to enhance liquidity, reduce financial burdens, and encourage financial institutions to extend loans to those needing additional liquidity.
The government remains committed to strengthening Thai SMEs, ensuring their survival and sustainable growth, and enhancing their competitiveness in the market.