- February 26, 2020
- Posted by: avantconsulting
- Category: SME Loans
Singapore SME Working Capital Loans Changes due to COVID-19 – Singapore has been particularly hit hard due to the COVID-19 Novel Coronavirus outbreak that started from Wuhan China. Singapore has disallowed any travelers that have been to Mainland China and also any Mainland Chinese from entering into Singapore, the tourism industry is badly hit. Related businesses such as those in events, transport, tour agencies are all badly hit by the virus outbreak that has caused tens of thousands of deaths worldwide with new cases popping up every other day.
Korea and Italy are as of today new hot spot for outbreak with Singapore getting it under control and new cases being low for a few days already. The fall out effect from this whole outbreak is expected to affect the whole economy and a recession might be on the way.
With the recent Singapore Budget 2020 updates (Link here for Ministry of Finance official website for Budget 2020: https://www.singaporebudget.gov.sg/budget_2020 ) or you could read our Avant Consulting Singapore Budget 2020 Summary here: https://www.avantconsulting.sg/updates-for-singapore-budget-2020/
With the recent outbreak and budget being around the same time, we are glad that the Ministry of Finance was fast to react and prepared some help for the businesses in Singapore.
Working Capital Loans for SMEs are expected to be increased from $300,000 to $600,000. The government through Enterprise Singapore will be covering 80% of the loans in the case of default as compared to the previous 50%. We are also expecting interest rates to increase since the government will be taking on more risk.
Here is the link for Working Capital Loan information by Enterprise Singapore: https://www.enterprisesg.gov.sg/financial-assistance/loans-and-insurance/loans-and-insurance/enterprise-financing-scheme/overview
For SMEs that are badly affected by the COVID-19 virus, such as those in the following sectors:
- Tour Agencies
- Hotel Owners
- Tour Transport Operators
- MICE (Meetings, Incentives, Conventions and Exhibitions)
Government will be providing an additional bridging loan to help this businesses that are the worst hit by the outbreak to weather through this tough times. Businesses are expected to have to go through a tough business period for at least a few months with the government saying that there is a likely recession that will be heading our way.
If you are caught in the cross hair of this outbreak and requiring cash flow support and loan consultancy advice for your business, you can speak to our SME Loan Consultants to help you weather through this
Avant Consulting Pte Ltd is a Singapore based Loan Consultancy Services firm that helps Small and Medium Enterprises (SMEs) to get financing from banks and financial institutions. We advice and also assist SMEs to ensure they get the best rates and lowest fees when they get loan financing help for their businesses.
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