SBF-YBLN HOPE FUND - SHORT TERM WORKING CAPITAL LOAN

The SBF-YBLN HOPE Fund is aimed at helping our promising enterprises tide over the current crisis, by offering short-term working capital loans for up to 12 months if they are facing short-term cashflow issues due to the effects of COVID-19.  

The SBF-YBLN HOPE Fund provides an additional source of accessible and affordable funding for SMEs. A key feature of the HOPE fund is the deferment of the loan principal and interest to only start from the third month onwards. This will help business owners focus on their business operations and recovery strategy. The platform is designed for loans to be approved quickly and to be disbursed within 24 hours from loan approval, subject to the required documentation received. 

1.    What are the terms of the loan?

Quantum                                SGD50,000
Tenure                                   12 months
Interest rate                           0.5% to 0.75% per month
Facility set-up fee                    SGD80 per application deducted from loan disbursement
Loan repayment                      Monthly principal and interest repayment 
Use of funds                           Working capital
Security                                 Personal guarantee of directors/shareholders

2.    Is there a minimum amount that I must borrow?
The loan quantum is fixed at SGD50,000.

3.    I  am a director for more than one company. Can I apply for loans for all my companies?
You may apply for the loan for more than one company. However, all applications are subject to credit assessments on the shareholders and directors.

4.    Are there penalties for early repayment?
There are no penalties for early repayment. You may, at any time, request for full repayment of the outstanding loan, i.e., all remaining monthly instalments (P+I) for the loan that is due and payable immediately.

5.    Can I do partial principal repayment before loan maturity?
Repayment before loan maturity can be done in full only.

6.    Does this apply to Singaporean companies only?
Yes, only companies registered in Singapore, and with more than 30% local shareholdings can apply.

7.    How does the SBF-YBLN HOPE Fund help with cashflow issues?
Loans disbursed from the SBF-YBLN HOPE Fund have monthly interest ranging between 0.5% to 0.75%. The HOPE Fund defers the monthly and interest payments to start from the third month onwards, offering immediate cashflow support to SMEs.

8.    What is the repayment schedule like?
Assuming your S$50,000 loan is disbursed on 1 March 2020 and carries an interest rate of 0.5% per month, an illustrative repayment schedule would be:

 

Date

 

Principal

Interest

P+I

Outstanding Principal

1/4/2020

1

$0.00

$0.00

$0.00

$50,000.00

1/5/2020

2

$0.00

$0.00

$0.00

$50,000.00

1/6/2020

3

$4,888.53

$250.00

$5,138.53

$45,111.47

1/7/2020

4

$4,912.97

$225.56

$5,138.53

$40,198.50

1/8/2020

5

$4,937.54

$200.99

$5,138.53

$35,260.96

1/9/2020

6

$4,962.22

$176.30

$5,138.53

$30,298.74

1/10/2020

7

$4,987.03

$151.49

$5,138.53

$25,311.71

1/11/2020

8

$5,011.97

$126.56

$5,138.53

$20,299.74

1/12/2020

9

$5,037.03

$101.50

$5,138.53

$15,262.71

1/1/2021

10

$5,062.22

$76.31

$5,138.53

$10,200.49

1/2/2021

11

$5,087.53

$51.00

$5,138.53

$5,112.96

1/3/2021

12

$5,112.96

$25.56

$5,138.53

$0.00

 

 

$50,000.00

$1,385.29

$51,385.29

 

 

How do I apply?

Interested applicants may email YBLNHOPEFund@gbfs.com.sg or visit 

https://apply.gbfs.com.sg



Source: https://www.sbf.org.sg/images/2020/02-Feb/SBF-YBLN_HOPE_Fund_-_Facts_Final_270220.pdf

 

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UPDATED AS OF 29 Oct 2020
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