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If you are a business owner who has entered into a contractual agreement recently and experiencing difficulties fulfilling your obligations due to COVID-19, the Ministry of Law has introduced a new law that offers you temporary relief from legal action, on a just and equitable basis, for six months.
You may apply to your lender to defer principal repayment of your SME’s loan until 31 December 2020. The loan term may be extended by up to the corresponding principal deferment period.
Under the new Enhanced SME Working Capital Loan, businesses can access up to $1M working capital with Enterprise Singapore undertake 90% risk sharing.
There are 14 financial institutions participating in this scheme. Credit criteria & interest rates vary across the banks.
Eligible enterprises may borrow up to $5 million under the TBLP, with the interest rate capped at 5% p.a., from Participating Financial Institutions (PFIs). The Government will provide 90% risk-share on these loans for new applications initiated from 8 April until 31 March 2021.
Eligible enterprises under the TBLP may also apply for up to 1 year deferral of principal repayment to help manage their debt, subject to assessment by the PFIs.