Government measures in key jurisdictions 3rd edition final - Flipbook - Page 102
Nicholas Lauw | nicholas.lauw@rajahtann.com | +65 62320772
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
The Monetary Authority of Singapore (“
”) has established the MAS SGD Facility and MAS USD
Facility to provide SGD and USD to funding markets in Singapore in order to support their effective
functioning.
•
•
The MAS USD Facility, established on 26 March 2020, seeks to provide up to USD60 billion of
funding to support stable USD liquidity conditions.
The MAS SGD Facility is established to provide low cost funding to banks and finance companies on
the conditions that such financial institutions commit to pass on the savings in funding costs to small
and medium enterprises (“SME”) applying for loans under Enterprise Singapore’s (“ ”) lending
schemes for SMEs: the SME Working Capital Loan scheme and the Temporary Bridging Loan
Programme. It was announced on 20 April 2020 that MAS will offer near-zero interest rate loans to
eligible banks – just 0.1 per cent per annum for a two-year tenor, which will help to lower the cost of
loans for these SME lending schemes and help financial institutions make loans to SME borrowers
more affordable.
The SME Capital Working Loan scheme was enhanced pursuant to the Solidarity Budget 2020 for the purpose
of aiding SMEs with their working capital and operational cashflow needs.
•
•
•
The maximum loan quantum was increased from SGD300,000 to SGD1 million.
The risk-share percentage is enhanced to 90% for new applications made from 8 April 2020 until 31
March 2021, i.e. lending institutions may make a claim against ES in the event of defaults by SME
borrowers for 90% of the unrecovered amount.
SMEs under the enhanced scheme may apply for up to 1 year deferral of principal repayment to
help manage their debt, subject to assessment and approval by the lending institution.
The Temporary Bridging Loan Programme was established in March 2020 for the purpose of providing
companies with access to up to SGD5 million working capital for business needs.
•
•
•
The Interest rate payable on the loan is capped at 5% per annum.
ES will provide 90% risk-share on loans extended under new applications made from 8 April 2020
until 31 March 2021 i.e. lending institutions may make a claim against ES in the event of defaults by
SME borrowers for 90% of the unrecovered amount.
Companies may apply for up to 1 year deferral of principal repayment to help manage their debt,
subject to assessment and approval by the lending institution.
Employment
What financial
support is the
government
providing to
businesses and to
individuals on
employment
issues?
102
•
The Temporary Relief Fund is a one-off SGD500 cash assistance to support Singapore citizens and
permanent residents who are retrenched or suffered at least 30% loss of personal income due to
Covid-19, subject to certain criteria beingfulfilled.
•
The Covid-19 Support Grant provides eligible Singapore citizens and permanent residents who
have lost their jobs due to Covid-19 with a monthly cash grant of SGD800 for 3 months, subject to
certain criteria beingfulfilled.
•
The Workfare Special Payment is a cash payout of SGD3,000 provided to all Singapore employees and
self-employed who have received Workfare Income Supplement payments in 2019. The cashpayout
will be paid over two equal payments of SGD1,500 each in July and October2020.
•
The Self-Employed Person Income Relief Scheme provides quarterly cash payouts of SGD3,000 in May,
July and October 2020 to eligible self-employed persons (“
”), if the SEP meets certain criteria.
Government measures in key jurisdictions