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Resilience Budget: Firms can get trade loans of up to S$10m, bridging loans of up to S$5m
SUPPORT will be provided so businesses will be able to continue to access credit amid the coronavirus pandemic, Deputy Prime Minister and Finance Minister Heng Swee Keat said in Parliament on Thursday.
As part of the government's Resilience Budget to deal with the Covid-19 pandemic, the Enterprise Financing Scheme (EFS) will receive a boost.
The maximum quantum for this loan will be increased to S$10 million from S$5 million. The government’s risk-share will also increase to 80 per cent, from up to 70 per cent previously.
Businesses will also receive higher subsidies of 80 per cent – up from 50 per cent – for loan insurance premiums under the Loan Insurance Scheme, Mr Heng said on Thursday.
Meanwhile, the one-year temporary bridging loan programme will be expanded to all enterprises – not just those in the tourism sector – and the maximum supported loan will be increased to S$5 million, from S$1 million previously.
The programme had been introduced in Budget 2020 for tourism companies to get loans of up to S$1 million with the interest rate capped at 5 per cent. The government will take on 80 per cent of the risk of the loans.
Beyond the temporary bridging loan programme, SMEs that still need more support can continue to tap on the SME working capital loan under the EFS.
The maximum loan quantum for this working capital loan will be raised to S$1 million, from S$600,000.
If requested by businesses, the government will work with participating financial institutions to defer capital payments for one year on the EFS working capital loan and the loans under the temporary bridging loan programme. This will be subject to assessment by the participating financial institutions.