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Business Recovery Guarantee Scheme

The Business Recovery Guarantee Scheme (BRGS) is the first credit guarantee scheme offered by the Credit Guarantee Corporation of Cambodia Plc. (CGCC). 

BRGS aims to support businesses including Micro, Small and Medium Enterprises (SMEs) and Large Firms to enhance their access to formal loans for both working capital and investment or business expansion. BRGS is in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during the COVID-19 pandemic. 

BRGS acts as collateral/security for 70%-80% of the loan amount borrowed by businesses from the Participating Financial Institutions (PFIs); thus, reducing the physical collateral required from the borrowers.

BRGS Scheme Features

CGCC BRGS Scheme Features

Eligible Borrowers

For loans to be qualified for the CGCC’s guarantee scheme, the borrowers must fall into the following criteria: 

  • The Borrower must be a majority Cambodian-owned business (>50% ownership). 
  • The Borrower must produce a business registration issued by appropriate government authorities.
  • The Borrower who is a non-registered business must proceed with the registration after the guarantee is approved. If the borrower remains a non-registered business, an additional guarantee fee of 0.5% per annum of the guaranteed amount will be imposed on every anniversary of the guarantee.
  • All Borrowers should be financially viable

How to apply for BRGS?

1. Borrowers including micro, small and medium enterprises, and large firms need to apply for a loan under BRGS from any of the CGCC’s PFIs. 

2. After evaluating and approving the loan, the PFIs submit a guarantee application for the loan to CGCC for guarantee. PFIs shall not disburse the loans before the guarantee application is approved by CGCC.

3. CGCC evaluates the guarantee application for the loan submitted by the PFIs. If the application is approved, CGCC will issue a Letter of Guarantee to the PFIs for the loan.

4. After the Letter of Guarantee is issued, the PFIs will disburse the Guaranteed Loan to the borrowers.

BRGS Process Flow

BRGS Process Flow

Priority Sectors

Agriculture

  • Growing and cultivation of crops
  • Livestock farming
  • Aquaculture

Industry

  • Agro-processing
  • Food manufacturing and processing
  • Manufacturing of local consumable goods
  • Waste recycling
  • Production of goods for the tourism sector
  • Manufacturing of finished products, spare parts, or assembling parts
  • Manufacturing of pharmaceutical products; medical equipment/products.

Services

  • Digital and ICT which include R&D or the supply of ICT-based services
  • Tourism (hotel, guesthouse, restaurant, and travel agent)
  • Transportation and logistics
  • Education (vocational training and soft skill training include digital)

Noted:

*Non-Priority Sectors are those sectors besides the sectors listed above. Non-Priority Sectors are also eligible for the BRGS.

Benefits of BRGS

  • 1. Supporting business survival and economic recovery during the COVID-19 pandemic in line with Government's policies
  • 2. Acting as collateral/security for 70%-80% of the loan amount borrowed from the PFIs, making SMEs more bankable
  • 3. Helping businesses access to financing and improving financial inclusion in Cambodia
  • 4. Sustaining business operation during COVID-19 outbreak and providing capital investment for business expansion
  • 5. Serving as a policy tool for long-term growth of SMEs
  • 6. Diversifying and sharing risks with PFIs, allowing more loans to be approved for SMEs