- April 2, 2020
- Posted by: avantconsulting
- Categories: Singapore Economy, SME Loans
Singapore Temporary Bridging Loan Scheme for Singapore SMEs – Singapore is going through a sharp downturn due to the Covid-19 Outbreak that has caused much difficulty for many Small & Medium Enterprises. Worse hit are those from the Tourism, Food & Beverages and Retail sectors.
Singapore has as of 01/04/2020 hit 1,000 cases and seeing a much sharper rise in local transmission cases. With this in view, the Ministry of Manpower have come down hard on employers to force all employers to allow telecommuting (working from home), safety distancing in the workplace and cancelling of all non-essential events between workers. Those employers that do not carry out such measures are liable for a fine and jail time. Read more about such enforcement here: https://www.todayonline.com/singapore/covid-19-fine-jail-employers-who-dont-make-telecommuting-arrangements-where-possible-staff.
Just last week, Deputy Prime Minister Heng Swee Keat has announced a Supplementary Budget 2020 to help SMEs, Employees and Self Employed persons to tide through this tough times.
Under the Supplementary Budget 2020, the most important component for Small and Medium Enterprises (SMEs) in Singapore is definitely the Temporary Bridging Loan Programme (TBLP) to help SMEs to survive this tough down turn.
For most of the banks that Avant Consulting works with, we are getting information that the best rates that they can give to SMEs in Singapore are 3% – 3.5% (effective interest) which is about 1.6% simple interest per annum.
Quantum for this loan is up to S$5 million depending on your company financials.
Information regarding this Singapore Temporary Bridge Loan Programme includes:
- Helping enterprises to tide through cashflow needs due to this Covid-10 Outbreak
- Government through Enterprise Singapore will be taking on a 80% risk-share from the financial institutions giving out this loans
- The Singapore Temporary Bridge Loan Programme will last a year from March 2020.
- The Programme wil also expand from tourism sector to all sectors in Singapore from 1 April 2020.
- Maximum loan interest of 5% per annum and an increase of loan quantum from S$1 million to S$5 million.
- Companies can also request for deferment of principal repayment for one year, subject to approval.
A quick check with Enterprise Singapore website regarding the Singapore Temporary Bridging Loan Programme here: https://www.enterprisesg.gov.sg/financial-assistance/loans-and-insurance/loans-and-insurance/temporary-bridging-loan-programme/overview.
This chart is quite clear in providing an idea of the new loan scheme:
|
MAXIMUM LOAN QUANTUM
|
S$5 Million / Borrower Group1 |
|
MAXIMUM REPAYMENT PERIOD
|
5 years |
|
RISK-SHARE
|
The borrower is responsible to repay 100% of the loan amount. When defaults occur, the PFIs are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share |
|
INTEREST RATE
|
Capped at 5% p.a. |
Avant Consulting Pte Ltd is a Singapore SME Loan Brokering company that assist Small & Medium Enterprises to get access to Singapore Bank Loans such as the Singapore Working Capital Loan and also now the Temporary Bridging Loan Programme.
SMEs that are unfamiliar with the process and requirements of banks or may have been rejected by banks due to minor issues that you are not familiar with can seek consultation with our SME Business Loan Broker Singapore to assist you with this whole process.
Speak to us at +65 9752 9796 now or + 65 9092 5632 to find out more about this new loan scheme.