SMEs in Thailand to receive a new financial support package

Thailand has approved a 327-billion-baht support package to help small and medium-sized enterprises (SMEs) regain liquidity and improve access to loans.

The measures, approved by the Cabinet on Tuesday, combine low-interest loans, credit guarantees and accelerated tax refunds under a “Quick Big Win” strategy. According to government officials, the plan is designed to reverse the shrinking credit to SMEs, which now affects more than half of all small businesses.

“Thai SMEs are running out of breath,” Finance Minister Ekniti Nitithanprapas said. “Today, liquidity has dried up. We need to inject fuel into this sector to help them regain their strength.”

The package includes 217 billion baht in soft loans to be issued by seven state-owned financial institutions, 50 billion baht in credit guarantees and 60 billion baht in expedited corporate tax refunds for about 20,000 SMEs. The government will cover credit-guarantee fees for three years.

Besides SMEs, part of this package will also apply to firms hit by severe flooding in southern Thailand since mid-November, with dedicated mitigation programs and extended application windows. Other loan schemes target tourism operators, micro-SMEs, agricultural businesses, exporters, halal producers and real estate developers.

The combined measures will support about 107,000 small businesses, bring more than 270 billion baht into the economy and add 0.36 percentage points to GDP growth in 2026. The broader economy is currently struggling with weak exports, high household debt and a strong baht, with growth expected to come in near 1% in the final quarter of 2025.

Foreign SMEs already operating in the country or planning to establish a presence are expected to benefit from a more predictable financing environment under this package. It also includes steps to level the playing field, including the cancellation of the de minimis import exemption and new incentives for SME participation in government procurement.

According to Ekniti, the goal is “short-term stimulus with long-term impact,” adding that the measures are intended to build a stronger SME ecosystem across the country.