|Covid-19 Relief Measures |Enhanced SME Working Capital Loan
Enhanced SME Working Capital Loan
Up to $300,000 collateral-free term loan for young company.
New measures help companies to deal with the cash flow crisis and set for long-term strategic growth.
Loan Feature At A Glance
Finance operational cashflow needs.
Loan quantum - Up to $300,000.00
The borrowing exposure loan is capped at per company or at the group related company from 1-April 2021.
Fixed Interest rate - From 2.50% pa
The borrowing cost charged varies from company to company, largely depend on the borrower's risk profile.
Repayment period - Up to 5 years
Stretch up to the longest repayment period and keep the monthly repayment sum be affordable in general.
Security - No collateral is required
No collateral is needed, as the loan is 50% risk-sharing for SMEs and 70% for young company.
Early Settlement - No penalty charge
The early settlement fee is waived as long the company serves 1-month early notice to the banks or the lenders.
Your business must meet the pre-requisite criteria.
A locally registered company and physically present in Singapore.
At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
Maximum Borrower Group revenue not exceeding S$500 million for all enterprises
For "SME Working Capital", the SME definition refers to Group revenue of up to S$100 million or maximum employment of 200 employees
The interested party can submit the mentioned documents for a free credit assessment.
A current copy of the Company's Bizfile.
Recent 6 months bank statements.
Current 2 years of the annual financial reports.
Current month loan summary declaration.
The business owner or director's IC and 2018 & 2019 NOAs.
Frequently Asked Questions, FAQ
For further questions, please contact us:
(65) 6611 2918 (office)
(65) 97500 281 (whatsapp/ call)
When can I apply for the loan?
With immediate effect, all locally registered companies holding with at least 30% local shareholding throughout all industries are eligible to apply.
Can companies allow to apply with different banks or lenders?
Yes, the applicants are allowed to apply multiple times with different PFIs as the loan program is capped at the maximum amount of S$1 million.
Can companies apply for the new financing scheme if they have applied before or still balance loan outstanding?
Yes, all the eligible businesses are able to apply the new financing scheme. The approval is subject to assessment by the PFIs.
Can companies enjoy a lower interest rate and processing fee?
Banks have agreed to offer lower interest rates on new loan applications submitted from 1 April 2020 onwards. However, for loans disbursed before 1 April 2020 (2 March 2020 to 31 March 2020), banks may take initiative to lower the interest rate for the remaining loan tenure period.
Can companies apply for the Temporary Bridging Loan and the Enhanced SME Working Capital Loan at the same time?
Yes, this provided if the companies meet the criteria for each scheme, and as well subject to the credit assessment by the PFIs.
Can companies request for deferment of principal repayment?
Companies may request for up to a 1-year deferral of principal repayment, subject to the approval of the PFIs.
Does it mean the guarantor(s) only responsible 20% of the loan since the Government guarantees 80% of the loan?
No. The borrower is liable for 100% of the loan amount.
When a loan has defaulted the PFIs are required to follow the recovery procedure to make a claim against Enterprise Singapore in the proportion of the risk-share.
From 31-March to 31-September-2020, you will enjoy one of the following privileges:
1-year loan repayment complimentary insurance cover*; or
Free corporate credit card*; or
Up to $300.00 cash discount*.