Noted:
The Non-Priority Sectors are those sectors besides the sectors listed above.
Women Entrepreneurs Guarantee Scheme (WEGS)
WEGS, the third credit guarantee scheme offered by the CGCC, is the specifically designed for women and women-owned SMEs.
WEGS is specifically designed for women and women-owned businesses, aiming to narrow the gap between the supply and demand for financing by providing a higher guaranteed coverage of 80% and a lower guarantee fee for all sectors with favorable credit guarantee features.
WEGS is in line with the “Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021 – 2023” which lays out the direction to encourage commercial banks and microfinance institutions to increase additional lending by relaxing the credit guarantee requirements of CGCC, by expanding the scope of guarantee coverage with favorable terms for priority sectors set by the Royal Government of Cambodia.
Click here: the official document of WEGS guidelines
WEGS Scheme Features
* CGCC reserves the right to change WEGS features, and an adequate notice period will be given.
Eligible Borrowers
For loans to be qualified for the Women Entrepreneurs guarantee scheme, the borrowers must fall into the following criteria:
-
The Borrower must be women or women-owned Micro, Small and Medium Enterprises (MSMEs), any MSMEs that meet at least two of the following criteria:
- Woman owns the majority of shares
- Management or decision maker is a woman
- Woman represents the company on any legal business registration
- Majority of the employees are women - 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 WEGS?
1. Women and Women-Owned SMEs Borrowers need to apply for a loan under WEGS from any of the CGCC’s Participating Financial Institutions (PFIs). (Click here for all PFIs: 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.
WEGS 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)
Benefits of WEGS
- Supporting women and women-owned business survival and economic recovery during the COVID-19 pandemic in line with Government's policies
- Acting as collateral/security for 80% of the loan amount borrowed from the PFIs, making women-owned SMEs more bankable
- Helping women and women-owned businesses access to financing and improving financial inclusion in Cambodia
- Sustaining women and women-owned business operation during COVID-19 outbreak and providing capital investment for business expansion
- Serving as a policy tool for long-term growth of SMEs
- Diversifying and sharing risks with PFIs, allowing more loans to be approved for women-owned SMEs
Small & Medium Enterprises
WEGS aims to support women and women-owned businesses access to formal credit through CGCC’s credit guarantees by giving a higher guaranteed coverage of 80% and lower guarantee fees of 1% per annum for ALL sectors. This scheme also aims to support CGCC’s participating financial institutions to increase women’s loan portfolio , and to extend guaranteed loans to women and women-owned businesses with favorable credit guarantee features.
