FAQ BCF 2.0

1 What are the eligibility criteria for the application? 
The BCF 2.0 schemes are to be provided to companies / projects that fall under the following categories:-
  • BioNexus (“BNX”) status: and
  1. BioNexus Status Company;
  2. Majority owned by Malaysians; and
  3. Minimum paid-up capital (CASH) of RM250,000.
  • Bioeconomy Transformation Programme (“BTP”)
  1. Bioeconomy Transformation Programme (BTP) Trigger Project;
  2. Majority owned by Malaysians; and
  3. Minimum paid-up capital (CASH) of RM100,000.
  • Bioeconomy Community Development Programme (“BCDP”)
  1. Company/ Business registered with Companies Commission of Malaysia (SSM);
  2. Cooperative registered with Malaysia Co-operative Societies Commission (SKM) not less than 18 months; or
  3. Association registered with The Registry of Societies Malaysia (ROS) not less than 18 months;
  4. Signed the buyback guarantee agreement with anchor company (BioNexus status company and/ or BTP Trigger Project owner); or
  5. Priority will be given to applicant who owns land.
 
 2 How does a company apply for the BCF 2.0 Programme?
 The first step of the application process would be to register such interest on the following webpage:
 
 3  What is the procedure for processing the application?
 
 
 4  At which point would the application process commences?
 The application process commences once the applicant submits the complete application submission documents to MIDF.
 
5  How long will it take to process the application?
 Approximately 40 working days from the time the registration of interest is made.
 
 6  What are the types of financing and purposes available under the BCF 2.0 Programme?
  • Business Sustenance Scheme: loans for working capital use of up to RM600 thousand
  1. Raw Materials, Consumables / Livestock;
  2. Expenses directly related to R&D activities towards improving existing products/services with the exception of payroll/human capital emolument expenses;
  3. Expenses directly related to business expansion activities to introduce products/services into the global market such as advertisement, participation in overseas exhibition ie opening up booth, air ticket etc.  excluding payroll/human capital emolument expenses;
  4. Overhead expenses directly related to specific R&D/ international business development stages;
  5. Intellectual Property (IP) filing and registration;
  6. Clinical / Field Trials Costs;
  7. Compliance and regulatory cost;
  8. Initial cost for recruitment of knowledge workers; and
  9. Professional/ Technical consultancy fees.
  • Bioeconomy Development Scheme: soft loans of up to RM3 million for the expansion and improvement of production and services.
  1. Purchase of ready built building/ land for construction of building or land for business operation purposes;
  2. Purchase of new/used machinery and equipment, laboratory or any other production equipment; and
  3. Operating Expenditure with exception of payroll/ human capital emolument expenses.
 
7 What is the tenure of the financing for the BCF 2.0 Programme?
  • Business Sustenance Scheme:
    1. Term Working Capital Financing – up to a maximum of 2 years inclusive of grace period of up to 6 months;
    2. Purchase Revolving Credit/Sales Revolving Credit – Up to 150 days for each drawdown including an option to roll over for a period of not exceeding 60 days; and
    3. Factoring – Up to 180 days for each drawdown.
  • Bioeconomy Development Scheme: up to a maximum of 7 years inclusive of grace period of up to 18 months.
* Terms and Conditions apply.
 
8 What does “Zero Financing Cost” mean?
The cost incurred in order to raise the financing is not borne by the applicant, e.g. legal fees, stamp duty, etc.
 
 9  Which of the BCF 2.0 Facility entitles the applicant to “Zero Financing Cost”?
 “Zero Financing Cost” is only enjoyed under the Bioeconomy Development Scheme. The cost of obtaining the Business Sustenance Scheme are as follows:
  1. Legal Fees;
  2. Stamp Duty;
  3. Processing Fee;
  4. Insurance Premium (if any);
  5. Guarantee Fee (if any); and
  6. GST for all the above.
 10  May the applicant apply for both the Business Sustenance Scheme and Business Development Scheme?
 Yes, the applicant may apply for both the financing schemes under the BCF 2.0 Programme.
 
 11  What is the margin of financing?
 Business Sustenance Scheme
  1. Up to 100% financing for Purchase Revolving Credit;
  2. Up to 90% for Sales Revolving Credit;
  3. Up to 90.0% for Term Working Capital Financing; or
  4. Up to 80.0% for Factoring.
Bioeconomy Development Scheme
  1. Up to 90% financing for purchase of ready built building/land for
  2. construction of building or land, for business operation purposes;
  3. Up to 90.0% for purchase of new machinery and equipment, laboratory or any other production equipment;
  4. Up to 65% for purchase of used machinery and equipment, laboratory or any other production equipment and shall not be more than 5 years from manufacturing date; and
  5. Up to 90% for operating expenditure.
 
 12  May a start-up company/ cooperative/ association apply for a BCF 2.0 Programme?
 No, the BCF 2.0 Programme is intended to facilitate on-going commercialisation of bio-based products and services and/ or provide assistance in expanding applicants’ existing bio-based businesses, of which in any case the applicant must have been in operations for at least 2 years.
 
 13  Would the applicant be required to provide collateral?
 Depending on MIDF’s credit and financial assessment, some applicants may be required to provide collateral.
   
 14  Would there be a rebate if the borrower retires the facility ahead of its scheduled expiry?
As the BCF 2.0 Programme adopts underlying transactions to facilitate the Islamic Financing Transactions, an Ibra’ (rebate) may be granted at the discretion of MIDF for settling the financing obligation prior to the agreed settlement period. Terms and Conditions apply.
 
15 Should one completes the drawdown ahead of the scheduled expiry of the grace period, would one need to commence the full repayment of the loan in the subsequent month?
In principle one may enjoy the grace period and commence the full repayment once the grace period expires, unless the profit payments are not service regularly during the grace period. Terms and Conditions apply.
 
16 Is assistance provided to facilitate the application submission?
Yes, the applicant may pre-consult MIDF and BioeconomyCorp to facilitate the application submission.
 
17 How will the applicant know if they had succeeded or fail the application?
MIDF will advise the applicant if they had succeeded or fail in their application process.
 
18 What is the availability period under the BCF 2.0 Programme for a successful applicant?
Once the Facility Agreement executed, the successful applicant would be required to make the 1st drawdown within 6 months from the execution date of the Facility Agreement.
 
19 May a successful recipient of BCF 1.0 Programme apply for a BCF 2.0 Programme?
Yes, one may apply.

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