Bangkok:The government is advancing a 30 billion baht loan initiative aimed at aiding small and medium-sized enterprises (SMEs) in recovering from flood-induced damages. The program is accessible to businesses both within and outside declared disaster zones, setting a maximum loan limit of 30 million baht per borrower, with interest rates capped at 3.50% for the initial two years.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that the government is prioritizing economic recovery by supporting SMEs impacted by floods. The Cabinet, on October 20, 2026, recognized the Ministry of Finance's flood relief measures, which include the GSB Soft Loan program offering 30 billion baht in low-interest loans. This initiative aims to assist businesses in repairing premises, restoring assets, and improving liquidity to resume operations. Additionally, the Cabinet has approved the program's accounting separation into a Public Service Account (PSA).
Ms. Lalida emphasized that the program extends beyond businesses in declared disaster areas, allowing others affected by floods to participate if they can demonstrate damage. Eligible businesses span manufacturing, services, and trade sectors but must undergo a qualification verification process. Meeting eligibility does not guarantee loan approval, as financial institutions will conduct their own reviews.
Eligibility criteria require SMEs to be Thai-owned or registered in Thailand, with over 50% of capital held by Thai citizens. Both existing and new borrowers are eligible, provided they do not have non-performing loans. The maximum loan amount is 30 million baht across all participating financial institutions, based on the borrower's needs and repayment capability.
Ms. Lalida further explained that the Government Savings Bank will offer funds to financial institutions at 0.01% per year, which will then lend to SMEs at rates not exceeding 3.50% in the first two years, rising to a maximum of 5.00% in years three to five. Beyond five years, interest rates will be set by financial institutions. Entrepreneurs are advised to thoroughly review terms and repayment plans.
The application deadline is June 30, 2027. Entrepreneurs should contact the Government Savings Bank or participating financial institutions for details on applications, eligibility, and documentation, especially for businesses outside disaster-declared areas. For further inquiries, the Government Savings Bank hotline at 1115 is available.
Ms. Lalida reiterated the government's commitment to aiding affected SMEs, emphasizing the importance of verifying eligibility and conditions to effectively utilize the loan program for business recovery.