Bangkok: The Cabinet has extended the "SME Green Productivity" program until the end of 2026, enhancing financial support by increasing funding per company by 30 million baht. This initiative aims to facilitate the upgrade of machinery and vehicles to clean energy alternatives.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that the Cabinet is set to consider approving revisions to the criteria of the SME Green Productivity loan project, which amounts to a total of 15 billion baht. The program is designed as a Public Service Account (PSA) loan initiative to offer SMEs ongoing access to low-cost funding, supporting productivity enhancement and transition to green industries in alignment with the evolving economic and competitive landscapes.
The deputy spokesperson noted the Cabinet's initial resolution on July 30, 2024, which approved the Small and Medium Enterprise Development Bank of Thailand (SME Bank) to implement the project. A total loan allocation of 15,000 million baht and a budget of 1,350 million baht were set aside for interest rate differential compensation, allowing borrowers a fixed interest rate of 3 percent per year for the first three years. The maximum loan amount per borrower was set at 10 million baht, with an application period ending on December 30, 2025, or until the funds were depleted.
As of October 31, 2025, approvals under the project amounted to 4,826 million baht, covering 32% of the project's budget. With ongoing loan applications, significant funds remain available for SMEs in 2026. Consequently, the Ministry of Industry has proposed three critical adjustments within the existing budget: extending the loan application deadline to December 30, 2026, expanding the target group to include vehicles aimed at clean energy transitions beyond electric vehicles, and increasing the loan limit per borrower to 30 million baht. These changes are intended to support SMEs needing substantial investment for upgrading production processes, machinery, and technology, particularly in industrial estates requiring higher investment.
The deputy spokesperson emphasized that these revisions do not exceed the original credit limit of 15 billion baht or the compensation budget of 1.35 billion baht, ensuring no additional obligations. The SME Bank board has approved the revised criteria, garnering support from relevant agencies. This initiative is expected to assist around 1,700 SMEs, generate approximately 68.7 billion baht in working capital, and preserve at least 27,680 jobs. The government plans to expedite public awareness campaigns to inform entrepreneurs about this project's opportunities and benefits, fostering access to suitable technology and promoting environmentally friendly production improvements for the sustainable and competitive growth of Thai SMEs.