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This fund is intended to fill that gap.

To access the fund, a bank must first sign a Participation Agreement with Bangladesh Bank. The scheme will be managed by the Banking Regulation and Policy Department.

Each loan drawn from the fund, as well as its repayment, must be processed through the participating bank’s head office or principal office.

The scheme will operate on a revolving basis for three years, meaning money repaid by one borrower can be lent out again within the scheme’s lifespan. Each individual loan will have a maximum term of one year. If a borrower’s business performs satisfactorily, the bank may apply to Bangladesh Bank for a renewal.

Regarding interest rates, banks must pay Bangladesh Bank 4 percent per annum on the funds they borrow, with interest charged quarterly.

However, no interest will be due during the first six months after disbursement. On the borrower’s side, banks cannot charge more than 7 percent per annum. No additional fees or charges will be permitted beyond those listed in Bangladesh Bank’s official schedule of charges.

No single company or business group may receive more than Tk 200 crore under the scheme at any given time.

Before granting a loan, a bank must conduct a thorough assessment of why the business closed or why it is not operating at full capacity. Management failure, weak marketing, outdated technology, and inadequate utility connections are among the factors that banks must examine and determine to be addressable.

Borrowers already classified as defaulters by the Credit Information Bureau (CIB) are not eligible.

For worker salary payments under the scheme, banks must transfer wages directly to individual workers’ bank accounts or mobile financial service accounts. Cash payments are not allowed. Banks are required to verify each worker’s NID number before making salary transfers.

Export-oriented and indirect-exporter firms will receive priority under the scheme. Companies with the technical skills, infrastructure, and commercial capacity to take over or lease a closed unit and restart operations will also receive priority consideration.

Banks must collect weekly sales and revenue reports from borrowers and conduct quarterly factory inspections. BB retains the right to conduct on-site inspections of any borrower at any time.

If misuse of funds is detected, the bank must immediately recover the full amount at the original interest rate, along with an additional 2 percent penalty.

The circular, which was issued under section 45 of the Bank Companies Act, 1991, and takes immediate effect.