Temporary Bridging Loan Programme

Temporary Bridging Loan Programme

The Temporary Bridging Loan Programme is a government assisted financing scheme introduced in Budget 2020. This financing scheme is now eligible to all sectors (previously only applicable to tourism industry) after the Solidarity Budget enhancements.

About $1.7 billion drawn from past reserves will be used to finance several enhanced schemes to provide businesses with access to credit amid the coronavirus pandemic.

Businesses now can take a loan of up to $5 million under the programme, an increase from the previous $1 million cap. All eligible enterprises can apply for the programme till March 31 2021.

Interested enterprises can apply through Bizsquare.

Benefits of Temporary Bridging Loan

  • Maximum Loan Quantum up to S$5 Million
  • Tenure up to 5 years
  • No Collateral
  • Interest rate start from 2.5% p.a onwards
  • Government risk sharing with banks on loan default

Risk Share

The borrower is responsible to repay 100% of the loan amount. When defaults occur, the PFIs are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.

Eligibility

  • Be a business entity that is registered and physically present in Singapore
  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
Published on 30 April 2020