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FAQ for Goverment Assissted Loan
The TBLP was introduced to help the enterprises access working capital.
As announced in the Solidarity Budget on 6 Apr 2020, the Government will enhance the TBLP further with 90% risk share. The enhancement will apply to new applications initiated from 8 April 2020 until 31 March 2021. For applications that are pending approval from PFIs, enterprises are advised to speak to their PFIs on their eligibility.
As announced on 12 Oct 2020, TBLP will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Government’s risk-share on the loan will be lowered to 70% (90% currently) with the maximum loan quantum lowered to S$3 million (S$5 million currently). This is to calibrate the support for businesses as the economy gradually recovers.
Yes, SMEs can approach different financial institutions to apply for Temporary Bridging Loan. However, the total aggregate borrowing under the scheme from different Financial Institutions cannot exceed S$3,000,000.
The participating Financial Institutions for the Temporary Bridging Loan Scheme are:
CIMB Bank Berhad
DBS Bank Ltd
ETHOZ Capital Ltd
FS Capital Pte Ltd
Goldbell Financial Services Pte Ltd
Hong Kong and Shanghai Banking Corporation
Hong Leong Finance Ltd
IFS Capital Ltd
Maybank Singapore Ltd and Malayan Banking Berhad, Singapore Branch
ORIX Leasing Singapore Ltd
Oversea-Chinese Banking Corporation Ltd (OCBC Bank)
Resona Merchant Bank Asia Ltd
RHB Bank Berhad
Sing Investments & Finance Ltd
Singapura Finance Ltd
Standard Chartered Bank
United Overseas Bank Ltd
Validus Capital Pte. Ltd.
Temporary Bridging Loan was introduced in response to the COVID-19 outbreak, to help SMEs manage their immediate cash flow needs.
Eligible SMEs can borrow up to S$3 million, with an interest rate capped at 5% per annum. SMEs that require help beyond the Temporary Bridging Loan can also tap on the Enhanced Working Capital Loan, which has been further enhanced to support loans of up to S$1 million.
Different banks have different risk appetites at different times, hence their lending policies can differ. A credit score in risk grade HH might be upright rejected by some financial institutions while others like Maybank might approve the application (Subject to Company Financial Profile and mitigation of bad Credit Bureau Score.)
Financial Institutions like Ethoz and Orix might not even need to run Directors' CBS search if entities have more than 2 Directors/ Shareholders.
The best thing you can do is to improve your credit score as much as you can and keep it at that highest possible level or approach us for advisory.
Find out more about how your personal credit bureau affects your business loan application here.
No. With the Co-Risk sharing scheme PFIs will be more inclined to take in more loan exposure to a certain extent, but that does not necessarily mean a lenient risk assessment. PFIs will still approve applicants within their own credit parameters and comfort levels; although credit parameters can differ among PFIs, their main assessments are still based on company Financial Reports, Bank Statements and Individual Directors’ declared income assessments.
Most PFIs will require the standard documents listed below for processing:
- Latest 6 months company’s operating account
- Latest 2 years company audited/ management report
- Latest 2 years notice of assessment of directors/shareholders
- Photocopy of directors/shareholders NRIC (front and back)
Some may ask for additional documents such as the company’s debtor aging list, corporate Notice Of Assessment, GST tax filing, etc.
We wish too! But sadly, borrower and guarantors are responsible to repay 100% of the loan amount.
In the event of default, Participating Financial Institutions are obligated to follow their standard commercial recovery procedure, including the effect of the personal guarantee (which means PFIs will foreclose, auction off any valuable assets of the company and guarantors), before they make a claim against Enterprise Singapore for the unrecovered amount in proportion to risk-share.
All eligible enterprises applying for the Temporary Bridging Loan are subject to assessment by Participating Financial Institutions (PFIs).
As different PFIs have different lending criteria and assessments, one rejection might not mean rejection in others but do note that any failed application with a PFI will result in a waiting period of 6-12 months before the business can re-apply with the same PFI.
To avoid this, one can approach a platform like us to assist with the company's financial assessment before they submit to PFIs.
Businesses that require further support may approach Enterprise Singapore at (65) 6898 1800 or email@example.com for assistance
Applications may possibly be rejected due to the following reasons:
- Poor credit bureau standing of the guarantor of the application
- Loss making company
- Negative net-worth company
- Poor repayment conduct of existing personal or business loan facility with the applicant lender
- Poor mid/end month balance sighted
All business term loans will require the company’s director and shareholder to be the personal guarantor. As per MAS notice 645 TDSR (Total Debt Servicing Ratio) guideline, 20% of the monthly repayment instalment for any relevant credit facility which the borrower is a guarantor of will be factored into the TDSR calculation.