Budget 2022: Extension of loans important as some sectors still not out of the woods

EXTENDING loan assistance programmes for small and medium-sized enterprises (SMEs) and the construction sector is important, despite the lower quantums this time round, said industry professionals.

To support SMEs with cash flow needs, the Temporary Bridging Loan Programme (TBLP) and the Enhanced Enterprise Financing Scheme - Trade Loan (EFS-TL) are extended until Sep 30, 2022. The maximum loan quantum for the TBLP will be revised to S$1 million per borrower, from S$3 million. For the EFS-TL, the maximum loan quantum will be revised to S$5 million per borrower, from S$10 million previously.

Satya Ramamurthy, partner and head of infrastructure, government and healthcare at KPMG in Singapore, said that the quantum of loans has been gradually reduced since 2020 - the height of the pandemic - as stress levels are reducing and more of the workforce are returning.