SME D Bank unveils plan to support SMEs amidst US-Iran conflict, injecting low-interest loans at 3%.

SME D Bank unveils plan to help SMEs cope with the US-Iran conflict, offering three low-interest loan programs at 3% per year to support Thai SMEs.

9 Mar 2569 Mr. Pichit Mitrawong, Managing Director of the Small and Medium Enterprise Development Bank of Thailand (SME Bank) Or as SME D Bank revealed that... The "SME D Bank Research and Information Center" has assessed the impact of the conflict between the United States and Iran on Thai SMEs. The direct impact is that energy costs, both direct and indirect, as well as fertilizer and petrochemical costs, will increase. General inflation will rise, making it difficult to adjust the policy interest rate up or down.

Furthermore, the Thai baht is at risk of depreciation due to the current account deficit and the government's need to spend more to support the economy. At the same time, it has indirect impacts on consumer and business confidence, a decrease in domestic and international tourists, and higher freight and insurance costs.

The manufacturing sector is likely to be most affected by rising energy costs, particularly heavy industries such as steel and construction materials, as these industries have a high proportion (60-70%) of hidden energy costs in their upstream raw materials. The service sector, with the exception of logistics, will be indirectly affected.

However, this situation could create business opportunities, such as exporting substitute goods for those whose production has been halted in the Middle East, like food and processed agricultural products; boosting investment in green energy and energy efficiency, including electric vehicles (EVs); and potentially leading to the relocation of production bases or the migration of wealthy foreigners to safer countries.

Businesses in the northeastern region are likely to be most severely impacted by the US-Iran conflict, as they already face existing problems such as declining prices for several agricultural products, natural disasters, and the Thai-Cambodian situation.

Mr. Pichit stated that, given the current situation, the most important factor for the survival of Thai SMEs is systematic cost management, encompassing both variable and fixed costs. This includes focusing on reducing energy costs through investment in energy efficiency, creating differentiation to add value to products and services, expanding into new markets, and utilizing technology and innovation to help reduce costs.

SME D Bank has prepared guidelines to assist SME entrepreneurs through financial services and loan products that will help reduce financial costs and support investment in technology upgrades, machinery improvements, or production process enhancements, as well as improve liquidity, which will help reduce energy costs. These are offered through three loan products with a special interest rate of only 3% per year, fixed for the first three years, with a repayment period of up to 10 years.

"SME Green Productivity Loan" The maximum loan amount is 30 million baht, focusing on investment in the installation of machinery and equipment using clean energy. "Beyond Loan: Empowering SMEs" The maximum loan amount is 30 million baht, focusing on upgrading and improving business efficiency. "SME Empowerment Loan" The maximum loan amount is 1 million baht, aimed at supporting small and medium-sized enterprises (SMEs) in accessing funding without requiring collateral.

In conjunction with supporting development through the DX by SME D Bank platform.dx.smebank.co.thThis service provides comprehensive knowledge in areas such as product and service value addition, marketing, and standards. It is accessible anytime, anywhere, 24/7, and includes onsite activities throughout the year. The goal is to enhance skills, boost productivity, promote green industries, reduce energy costs, expand markets, and create sustainable growth.

SME entrepreneurs interested in accessing the "Development and Capital Injection" services can express their interest in various services from SME D Bank at any SME D Bank branch nationwide or through various online channels such as the LINE Official Account: SME Development Bank and the website. www.smebank.co.th For more information, call the Call Center at 1357.

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