Tamkeen, which formulates strategic and operational plans to enhance the prosperity of Bahrain, will launch rescue packages to help enterprises which have been worst hit by the recent unrest in the kingdom.

Tamkeen is structuring rescue packages in coordination with various stakeholders such as the Bahrain Chamber of Commerce and Industry.

With the aim of supporting firms that have been in business for at least one year, which have less than 50 employees and an annual turnover of less than BD 100,000, Tamkeen has announced a Support Fund Programme and set aside BD 10 million ($26.5 million) to help these companies tide over their financial gaps and set course for a new period of business sustainability and growth.

The wide-ranging programme places no restriction on which enterprise can benefit – the targeted beneficiaries could already be a part of a current Tamkeen programme or new to Tamkeen’s support schemes. Initially, the programme is restricted to approximately 2000 beneficiaries.

“Our preliminary market study finds that the recent challenges in the region had an impact on the private sector and, as with all periods of  uncertainty, the SMEs are the worst hit,” said chairman and acting chief executive Shaikh Mohammed bin Essa Al Khalifa.

“Bahrain’s leadership are keenly aware that the business community’s well-being is the backbone of future prosperity and we have been inspired by the many incentives and rescue packages that the government has initiated, to draw up this Support Fund Programme. It will provide much-needed relief for SMEs and strengthen them and the Bahrain economy for the brighter days ahead.

It is in line with other measures initiated such as  the suspension of the BD 10 LMRA fees for every expat worker for the next 6 months and  the suspension of the 5 per cent training levy for the hospitality industry, in addition to the directives from HRH the Prime Minister Prince Khalifa bin Salman Al Khalifa to the Central Bank of Bahrain, to make it possible for banks to support the recovery of the business sector by offering easier terms of loan repayment.

Tamkeen through an independent agency will carry out an assessment of the applicants’ financial status and provide the support to settle the payment of overhead expenses in accordance  with three categories.

Category 1 targeting SMEs with minimum  information with a support cap of BD 3,500. Category 2 is targeting companies which provide evidence through in-house Accounting and this carries a support cap of up to BD 5,000. Category 3 is targeting companies which can provide audited accounts can request a support cap of up to BD 10,000. Through this approach Tamkeen would serve a wide range of SMEs with different needs, a statement said.
 
The financial support can be used for the following payments:
- Rental : Covering the rent of the business premises.
- Rental of vehicles: which are used to execute the economic activity of the business
- Insurance premium: For buildings, equipment, vehicle belonging to the economic activity of the business
- Utility bills: inclusive of water and electricity, telecommunication, etc.
- Salaries of the workforce
- GOSI  fees for Bahraini workers
 
Applications can be submitted as of June 19.-TradeArabia News Service