As the COVID-19 pandemic begins to take its toll on domestic markets, the Myanmar Investment Commission (MIC) has approved more than 400 soft loans from its new “COVID-19 fund.”

Recipients of the one-year, one percent interest loans mostly include small and medium enterprises, especially in the tourism and hospitality sectors, according to the MIC. Some loans were also granted to larger companies in sectors hit hardest by the coronavirus. These include cut, make and pack” enterprises that prepare goods for export, and larger businesses in the hospitality and tourism sector. A total of MMK 100 billion has been designated for the fund, and the MIC will review a new round of loans applications will be reviewed following the Thingyan holiday, according to a Myanmar Times report.

Last month, State Counsellor Daw Aung San Suu Kyi promised reduced interest rates, tax breaks and other assistance to Myanmar businesses during the pandemic, and the soft loans are not the only measure the government has taken. It has also suspended the two percent advance income tax on exported goods, as the closing of border crossings and restricted movement within Myanmar’s neighbors has taken a serious toll on land trade. Furthermore, government officials have also met with officials from the International Monetary Fund, the World Bank and other multilateral organizations to discuss possible financial assistance.

In the meantime, the COVID-19 fund could be the last lifeline for many smaller enterprises that will be more or less out of business until the pandemic dies down. Candidates include bars and restaurants forced to transition to delivery or takeout only and smaller tour operators and travel agencies. Outside of manufacturers and exporters, airlines, railways and highway bus services are among the larger businesses feeling the coronavirus pinch.