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SINGAPORE: Enterprise Singapore announced on Monday (October 12) that it will improve and expand various grant and loan schemes, as part of its ongoing efforts to support businesses recovering from the COVID-19 pandemic.
The grants are intended to support the transformation efforts of companies, as well as those looking to expand overseas and enhance their digital capabilities, Enterprise Singapore said.
“All the plans that we are implementing are not just to help our companies overcome cyclical challenges.
“More importantly, we hope that our companies, our retailers, can use this help to help them pivot into new products, new markets, so that they can have a new growth trajectory beyond COVID-19,” Trade and Industry said Minister Chan Chun Sing, who spoke to the media after a visit to SK Jewelery Group on Monday.
With border restrictions continuing to disrupt travel, the Market Readiness Assistance Grant (MRA), which supports local businesses looking to expand abroad, will be expanded from November 1 to include support for the participation in virtual trade fairs.
Such a move, Enterprise Singapore said, “will encourage and enable companies to find new business opportunities abroad through such virtual platforms, without physical travel.”
The level of financial support for the Market Readiness Assistance Grant will also increase to 80% between November 1 of this year and September 30 of next year, up from 70% today. Support levels will return to 70% from October next year.
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The agency is also expanding the Enhanced Grant for Business Development and the Enhanced Grant for Productivity Solutions.
The Business Development Grant provides personalized support to local businesses for growth and transformation, while the Productivity Solutions Grants help businesses adopt pre-approved, ready-to-use productivity solutions and equipment.
Companies that take advantage of these two grants will be able to receive the enhanced financial support level of up to 80 percent through September 30 of next year. Support levels will return to 70% thereafter.
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Meanwhile, companies that need support to maintain and grow their business activities can also take advantage of various enhanced loan schemes, Enterprise Singapore said.
The Temporary Bridge Loan Program, which offers working capital to local businesses, will run from April 1, 2021 to September 30, 2021. The SGD Loan Facility of the Monetary Authority of Singapore will also extend support for all loans. approved under the program until September 30 next year.
With this extension, the Government will reduce its risk share of the loan from 90 percent to 70 percent and will reduce the maximum loan amount from S $ 5 million to S $ 3 million.
“This is to gauge support for businesses as the economy gradually recovers,” said Enterprise Singapore.
Similarly, the Business Financing Program – Commercial Loan, which supports the commercial financing needs of local businesses, will run from April 1, 2021 to September 30, 2021. The Government will also reduce its share of the risk of this loan from 90% to 70 percent, but keep the maximum loan amount at S $ 10 million.
The loan insurance scheme will also be integrated into the business finance scheme – business loan from 1 April next year “to allow Singapore companies to access business loans more easily.”
Borrowers seeking coverage for business loans can apply to participating financial institutions for government risk coverage under the scheme, ESG said.
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Due to the challenges faced by the construction sector, the Business Financing Scheme – Project Loans, which currently only covers projects abroad, will now be extended to construction companies looking to finance their insured domestic projects. The extension will run from January 1, 2021 to March 31, 2022.
Businesses with SSIC building codes beginning with 41, 42, or 43 can apply to their participating financial institution for the Enterprise Finance Scheme – Project Loans for the following types of loans:
- Working capital
- Factory / Building / Land (includes Purchase / Renovation / Construction)
- Equipment / Machinery / Other fixed assets / Machinery rental Purchase
- Guarantee
The Government will provide a 50% risk share for loans made by participating financial institutions. In some cases, the government’s share of risk can rise to 70 percent for young companies. The maximum loan amount will be S $ 30 million.
Young companies are companies formed in the last five years, with at least one employee and more than 50 percent of the capital stock owned by individuals.
