Urgent 327-billion-baht relief plan approved to boost SMEs and support flood-hit businesses

The Cabinet has approved a major relief measure, “Quick Big Win,” to support Thai SMEs, instructing 7 state-owned banks to provide urgent funds, credit guarantees, and tax measures, totaling 327 billion baht. These measures are aimed at resolving the issues of SMEs’ limited access to funding and shrinking credit, especially to assist businesses affected by the severe flooding in southern Thailand that began in mid-November.

The measures focus on the principle of “short-term stimulus with long-term impact, distributed broadly”, aiming to create a new ecosystem that will help SMEs grow stronger. The measures are divided into three main categories:

Financial Measures: Credit Injection and Guarantees of 267 Billion Baht

Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister, said that the financial measures will be carried out through 7 state-owned financial institutions (SFIs), which will provide loans and guarantees to urgently support liquidity. These include:

1. The Small and Medium Enterprise Credit Guarantee Corporation (SBCG): This agency will provide a 50 billion baht guarantee, free of fees for the first three years, covering three sub-programs:

• General SMEs, micro-enterprises, and government contractors, accepting applications until 30 December 2026.
• The PGS 11 program, which still has available funds, will extend its deadline for applications from 30 December 2025 to 30 December 2026.

2. Government Savings Bank (GSB): A 100 billion baht low-interest loan program, which targets four groups:

• Mitigation Loans for businesses affected by the floods, available for applications until 30 September 2026.
• Reinvent Thailand program, a collaboration with the private sector, designed to support target industries. Applications will be accepted until 31 March 2027.
• Transformation Loans to support business capacity-building.
• Tourism Loans for the tourism sector, with applications open until 31 March 2027.

3. Bank for Agriculture and Agricultural Cooperatives (BAAC): A total of 80 billion baht in loans for farmers and agricultural SMEs, with two programs:

• Sustainable Thailand (50 billion baht) and
• SME Thai Chaiyo (30 billion baht), accepting applications until 31 July 2028.

4. SME Development Bank (SME Bank): A loan program with an adjusted lending criteria, totaling 20 billion baht, targeting micro-SMEs (up to 1 million baht) and general SMEs (up to 30 million baht), with applications accepted until 30 December 2026.

5. Export-Import Bank of Thailand (EXIM Bank): A liquidity and export guarantee program worth 12 billion baht.

6. Islamic Bank of Thailand (iBank): Supporting halal producers and eco-friendly businesses with 3 billion baht.

7. Government Housing Bank (GH Bank): A 2 billion baht program for home construction, land purchases, repairs, as well as loans for real estate developers and homebuilders in the region.

Tax Measures: Ensuring Fairness and Restoring Liquidity

Ekniti added that the Cabinet has approved tax measures to improve the effectiveness and fairness of competition for SMEs within Thailand. These include:

• Customs Department: The De Minimis Value exemption for low-value imports is cancelled, to ensure that Thai SMEs can compete fairly with imported goods.
• Revenue Department: Accelerating corporate tax refunds for 20,000 SMEs, totaling 60 billion baht, to be completed by the end of 2026.
• Big Brother-Little Brother Project: Encouraging large companies listed on the Stock Exchange of Thailand to help smaller businesses in their supply chains. This project will assist SMEs in digitizing their processes to facilitate tax refunds and loan access. An estimated 1,500 SMEs are expected to join this project, which will speed up tax refunds by 1.7 billion baht annually.

Increasing Opportunities: Government Procurement and E-Commerce

Additionally, there are mechanisms to support SMEs in government procurement. The Central Accounting Department will offer a 5% price advantage for SMEs certified by the Office of Small and Medium Enterprises Promotion (OSMEP), provided they use the e-Tax Invoice system. Furthermore, PromptBiz will provide financing for SMEs working with government contracts.

The Commerce Ministry is also studying the establishment of a National E-Commerce Platform to reduce reliance on foreign platforms and enhance the ability of Thai entrepreneurs to engage in e-commerce more effectively.

Ekniti concluded that these measures will help 107,000 SMEs access additional credit, inject 270 billion baht into the economy, and contribute an additional 0.36% to GDP growth in 2026, ensuring Thailand’s economic growth remains sustainable in the long run.