To assist those who want to start small businesses but do not have the money, the Royal Monetary Authority (RMA) has developed an initiative to raise funds from the public. Through this financial platform, the general public can contribute to help set up small businesses. The platform is also extended to people with special needs and vulnerable and marginal segments of the population.
When the applicants apply for crowdsourcing, the RMA will first see if the applicant is eligible. Once that is sorted, the applicant and business details will go on to the online platform known as Kuenphen Financing.
It is on this platform that people can donate any amount to small businesses of their choice.
A business will get a maximum of Nu 500,000. Suppose a business is not able to raise the entire amount through crowdfunding, the RMA will support 15 per cent as a grant and the remaining amount as an interest-free loan. However, at least 20 per cent of the total amount needs to be raised through crowdfunding for the business to be eligible for the grant and interest-free loan. Beneficiaries do not need collateral or guarantors.
The grants and interest-free loans will be financed through the Kuenphen Revolving Fund, which has been set up by the RMA. People can also donate directly to the revolving fund.
The Kuenphen Platform went live today, with six campaigns referred by several Civil Society Organizations. The platform, supported by the Royal Securities Exchange of Bhutan Limited and the Bhutan Care Credit Limited, will host a batch of upcoming businesses every quarter.
Sherub Dorji
“Support to transform lives! Small contributions can make a difference in people’s lives!” People willing to contribute can visit the Kuenphen Financing website.
