DBS dangles bridging loans for SMEs awaiting government grants

Singapore

DBS will look to fund small and medium enterprises (SMEs) that are specifically waiting on claims through all forms of government grants, it said on Tuesday.

These bridging loans can stretch up to four years, and are typically between S$50,000 and S$100,000, the bank told The Business Times. These collateral-free loans, which DBS calls "business capabilities loans", can be used to cover the SMEs' expenses incurred before the grant reimbursement from the respective schemes.

This comes as the bank observed that while SMEs can tap on government grants, which are designed to defray costs associated with skills upgrading, innovation and productivity-related projects, product development, or overseas expansion, such reimbursements usually only kick in when a projec…