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SMEs on Hope fund get priority access to CIMB Singapore's Covid-19 funding schemes
SINGAPORE businesses tapping into the Helping Our Promising Enterprises (Hope) fund can now get priority access to CIMB Singapore's Covid-19-related financial schemes, allowing them to loan up to S$5 million more.
This would be in addition to the S$50,000 fixed loan that they would have already gotten under the Hope fund, which was started by companies in the Singapore Business Federation's (SBF) young leaders network.
The CIMB C-19 term loan allows small and mid-sized enterprises (SMEs) to borrow up to S$5 million on an interest rate of 2.88 per cent, while the BizAssist term loan allows them to borrow up to S$1 million on an interest rate of 3.75 per cent.
Loan tenures are longer - up to five years for both financial schemes - compared to the fund's offer of up to 12 months.
Through this tie-up, successful applicants of the Hope fund will also get a 2 per cent facility fee waiver, and a four-month interest rebate capped at S$1,000, from CIMB.
The need to provide SMEs with more funding options came as demand from businesses has grown in recent weeks. Already, the Hope fund - which has a S$5 million kitty - has disbursed close to S$2 million in funds to about 40 companies, and will continue handing out loans to more of them.
Sing Lun Group CEO Mark Lee, whose company is one of the six behind the Hope fund, said that as the Covid situation changes, the fund should also "evolve in tandem in order to remain helpful and relevant for SMEs".
The collaboration with CIMB Singapore will provide local businesses looking at short-term and/or long-term financial solutions with more options, helping them tide over this challenging period, Mr Lee added.
Young leaders from six prominent business families in Singapore, including Sing Lun Group, had set up a S$5 million fund in February to provide financing help for local enterprises hit by the onset of the novel coronavirus.
Other companies behind the fund include Ho Lee Group, Paradise Group, Soilbuild Group, Goldbell Group and Super Group founder's investment firm Apricot Capital.
"With the extension on CIMB’s network, we can now cast the net further and help even more businesses," said Alex Chua, CEO of Goldbell Financial Services.