Credit Program under Stimulus Package

Since March 2020, Bangladesh has been experiencing multiple stages of COVID-19 pandemic not only impacting the health sector with infections & fatalities. The COVID-19 induced containment measures, especially lockdowns, have intensified the needs of marginalized groups especially in informal sectors in terms of their livelihood. Many people have lost their jobs and income sources, resulting in an increase in unemployment and poverty in both urban and rural areas throughout the country. Those who have less/no access to social protection, smaller savings, or limited alternative sources of income both in urban and rural settings are the most affected ones. To revive the CMSMEs sector, the government announced a special incentive package worth BDT 200 billion for the entrepreneurs of Cottage, Micro, Small, and Medium enterprises badly affected by the COVID-19 pandemic on 5 April 2020. 

The Credit Program Under the Stimulus Package (CPSP) of SDF supports the pandemic-affected marginalized business entities and boosts up village-level economic activities. Under the CPSP, the credit amount is being invested by the recipient particularly the small and medium entrepreneurs for the expansion of their businesses and income generation and fulfilling the basic needs, creating more entrepreneurs and employment generation, alleviating poverty, and the cottage, small, and medium enterprise sector to support them to develop their business capital. Currently, 

Out of the approved amount of BDT. 300 crores in favor of SDF by Honorable Prime Minister of the Government of Bangladesh under the Stimulus Package for running credit programs amongst the target people, SDF so far received BDT. 200 crores as a part of the commitment. Immediately after receiving the amount, SDF started implementing its CPSP program from February 2021 covering the target people/sector/enterprises initially in 36 Upazilas under 13 districts. However, at the end of December 2023, CPSP Program is covering 54 Upazilas under 21 districts altogether. Among them 07 district and 22 upazillas, 06 district and 16 upazillas, and 08 district and 16 upazillas under Mymensingh, Rangpur, and Barishal region respectively. 

The goal of this initiative is to enhance the livelihoods of marginalized communities severely impacted by the COVID-19 pandemic by revitalizing and accelerating economic activities at the village level. This will be achieved through targeted support to cottage, small, and medium enterprises, which play a crucial role in fostering local economies. By providing the necessary resources, training, and financial assistance, the project aims to empower these enterprises, ensuring they contribute to community resilience and sustainable development. 

The key objectives of this initiative are to generate employment and reduce poverty through the development and expansion of small and medium entrepreneurship. This will not only create job opportunities but also support capital formation for small and medium industries, fostering economic growth. Additionally, by increasing the income of the marginalized population, the initiative aims to ensure the fulfillment of their basic needs, thereby improving their overall quality of life and promoting long-term economic stability.