| Covid-19 Relief Measures | Enhanced SME Trade Loan
Enhanced SME Trade Loan
Up to $10,000,000 collateral-free trade facility.
New measures help companies to deal with the cash flow crisis and set for long-term strategic growth.
Loan Feature At A Glance
Finance for the trading of goods and services.
Trade limit - Up to $10,000,000.00
The borrowing exposure loan is capped at per company or at the group related company.
Insurance premium - Subsidy up to 80%
The Supplementary budget in April, the insurance premium is subsidized up to 80% till 31-March-2022.
Financing value - Up to 100% purchase
Up to 100% of the aggregate amount of domestic and overseas trade-related working capital loan.
Security - No collateral is required
No collateral is needed, as the loan is on a 90:10 risk-sharing basis between government and the PFIs.
Tenure loan - Up to 120 days term
From the import of goods until receipts of proceeds from the customers to settle the outstanding bills.
Eligibility
Your business must meet the pre-requisite criteria.
Enterprise Finance Singapore or EFS's requirements:
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Be a business entity that is registered and physically present in Singapore.
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At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
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Maximum Borrower Group revenue not exceeding S$500 million for all enterprises
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For "SME Working Capital", the SME definition refers to Group revenue of up to S$100 million or maximum employment of 200 employees
Participating Financial institutions or PFIs' requirements:
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A locally-registered firm with at least a 30% local shareholding.
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With $750k annual sales turnover and a decent profit-making model.
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Operating in the low-risk market segments.
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Sound and healthy bank balances.
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Borrower and guarantor must stand with a sound 'AA to CC' credit rating
Require Documents
The interested party can submit the mentioned documents for a free credit assessment.
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A current copy of the Company's Bizfile.
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Recent 6 months bank statements.
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Current 2 years of the annual financial reports.
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Current month loan summary declaration.
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Current month of debtors and creditors aging lists.
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Top 5 customers and top 6 suppliers list.
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The business owner or director's IC and 2020 & 2021 NOAs.
Frequently Asked Questions, FAQ
For further questions, please contact us:
(65) 6611 2918 (office)
(65) 97500 281 (whatsapp/ call)
01/
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.
02/
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$10 million.
03/
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.
04/
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.
05/
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.
06/
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.
07/
Does it mean the guarantor(s) only responsible 10% of the loan since the Government guarantees 90% 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.