Relief measures and digital solutions for SMEs

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    The COVID-19 pandemic has deeply impacted lives and livelihoods. While many uncertainties remain, we want you to know that we are committed to supporting you through this challenging period.

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Latest advisory

  • SMEs facing cash flow difficulties may apply for an extension of relief measures under the Extended Support Scheme, which aims to help SMEs transition gradually to full loan repayments by 2021. Applications open on 2 November 2020.
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In partnership with MAS and our partners, we are rolling out these support measures and initiatives to help you navigate this difficult period, so you can focus on doing what's best for your business and employees.

 

Relief Measures

Defer principal payment on SME loans:

Defer principal payment on SME loans:

Special Financial Relief Programme for Secured Loans

  • Applies to all fully secured term loans.
  • Choose to defer your principal and pay only interest up till 31 December 2020.
  • Extend your loan tenure by the corresponding deferment period.

Example of how it works

 

[NEW] Extended Support Scheme – Standardised (ESS-S) for SMEs

  • Defer 80 per cent of principal payment from 1 January 2021 up to 30 June 2021*.
  • Applicable for all fully secured loans and loans granted under Enterprise Singapore’s Temporary Bridging Loan Programme and Enhanced Working Capital Loan scheme.

* Borrowers in Tier 1 and 2 Sectors can choose to defer 80 per cent of principal from 1 January 2021 to 30 June 2021.

Borrowers in Tier 3A and 3B Sectors can choose to defer 80 per cent of principal from 1 January 2021 to 31 March 2021.

Under the ESS-S, borrowers will need to pay instalments comprising the remaining 20 per cent principal and the interest on the loan.

To find out which JSS tier you are in, please refer to the FAQs: Extended Support Scheme – Standardised (ESS-S), Question 2.

 

[NEW] Extended Support Scheme – Customised (ESS-C) for SMEs

  • Applies to SMEs with more than one lender and who do not qualify for Credit Counselling Singapore’s Sole Proprietors and Partnerships Scheme (SPP Scheme) and the Ministry of Law’s Simplified Insolvency Programme.
  • Subject to UOB’s assessment.

 

For more information on ESS-S and ESS-C, please contact your Relationship Manager, call 6439 5050 or fill in the enquiry form.

 

Enjoy lower interest rates and higher subsidies on SME loans

Enjoy lower interest rates and higher subsidies on SME loans

Applies to loans under the government-assisted financing scheme administered by Enterprise Singapore to support your cash flow requirements.

  • Obtain funding under SME Working Capital Loan or Temporary Bridging Loan at a lower interest rate.
  • Enjoy increased subsidy by the Government under the Loan Insurance Scheme.

 

Apply now with MyInfo Business

 

Apply for flexible premium instalment plans

Apply for flexible premium instalment plans

Applies to General Insurance Policies such as general liabilities, vehicle, trade credit, property and more.

  • Opt for a Premium Instalment Plan to alleviate large one-time premium payment while ensuring coverage.

 

 

 

Credit relief measures* on hire purchase, block discounting and floor stock

Credit relief measures* on hire purchase, block discounting and floor stock loans

  • Defer your principal payment on hire purchase loans and pay only interest up to 31 December 2020.
  • Defer your principal payment on secured block discounting loans and pay only interest up to 31 December 2020 on the portion of the loan relating to end hirers that have served notification to UOB for relief under the COVID Act.
  • Extend tenure of floor stock loans up to 31 December 2020.

*Applications will be assessed on a case-by-case basis

 

FAQs

1. What is the Special Financial Relief Programme for Secured Loan?

Special Financial Relief Programme for Secured Loan entails the following:

  • Interest-only payment on the outstanding principal up to a maximum of 9 months or ending 31 Dec 2020, whichever is earlier, AND
  • Option to extend the loan tenor by up to the corresponding Interest-only payment period, OR
  • Re-amortised the remaining outstanding principal after the Interest-only payment period, over the remaining loan tenor.

For example:

Option 1: Interest-only payment till 31 Dec 2020 with Tenor extension

  • Borrower's application for Relief Programme for Secured Loan approved starting from 6 April 2020 to 31 Dec 2020 (Period: 9 months).
  • Loan maturity will be extended for 9 months and outstanding loan will be re-amortised after the interest-only period over the extended loan tenor.

Option 2: Interest servicing till 31 Dec 2020 without Tenor extension

  • Borrower's application for Relief Programme for Secured Loan approved starting from 6 April 2020 to 31 Dec 2020 (Period: 9 months).
  • No change in loan maturity.
  • Outstanding loan amount will be re-amortised after the interest-only period, over the remaining loan tenor (and your revised monthly P+I instalment after the interest-only period will likely be higher than your current monthly instalment)

 

2. Who's eligible for this Relief Programme for Secured Loan?

This Special Financial Relief Programme is applicable to all our existing SME customers who have:

  • Fully secured Term Loan(s)
  • No more than 90 days past due as at 6 Apr 2020

 

3. What specific impact(s) from COVID-19 do I have to demonstrate to be eligible for this Relief Programme for Secured Loan?

There is no requirement for you to demonstrate any specific impact from the COVID-19 pandemic.

 

4. What happens if the loan is no longer "fully secured" during the interest-only payment period due to decline in collateral value?

The relief should apply throughout the deferment period so long as the loan was “fully secured” at the point of application for the relief.

 

5. When can I start applying for the Relief Programme for Secured Loan?

You can submit your application from 6 Apr 2020 onwards.

 

6. What happens if my loan matures prior to 31 Dec 2020? Will the tenor extension option still apply? And how would it apply?

If your loan matures before 31 Dec 2020, you can still enjoy the relief period up to 31 Dec 2020 and you may extend the loan tenure up to the corresponding relief period (from the original maturity date).

Or you can also choose for the original maturity to remain unchanged, and you can repay the full principal outstanding at point of maturity, or extend the loan up to the corresponding relief period.

For example: If you opt into the relief program on 1 Jul 2020, and your original loan tenure ends/matures on 1 Sep 2020:

  • You can enjoy the relief program from 1 Jul 2020 until 31 Dec 2020 (6 months) and you may choose to extend the loan tenure by 6 months, i.e. from 1 Sep 2020 until end Feb 2021, or
  • You can enjoy the relief program for 2 months from 1 Jul 2020 to end August 2020 and you may choose to pay up the full principal outstanding on the maturity date 1 Sep 2020 or extend the loan tenure by 2 months from 1 Sep 2020.

 

7. How do I apply for the Relief Programme for Secured Loan?

To apply, please contact your Relationship Manager, or call us at 6439 5050 for more information.

Alternatively, please submit your online application here.

1. What is the Extended Support Scheme – Standardised (“ESS-S”)?

The ESS-S is an opt-in scheme for small- and-medium-sized enterprise (SME) borrowers whereby:

  • Borrowers in Tier 1 and 2 Sectors can choose to defer 80 per cent of principal from 1 January 2021 to 30 June 2021.
  • Borrowers in Tier 3A and 3B Sectors can choose to defer 80 per cent of principal from 1 January 2021 to 31 March 2021.

Under the ESS-S, borrowers will need to pay instalments comprising the remaining 20 per cent principal and the interest on the loan during the deferment period.

 

2. How do I know which Tier I am in?

The determination of the borrower’s Tier is based on the Job Support Scheme (“JSS”) notice(s) or other documentation from IRAS, where available.

For cases where the borrower is not receiving wage support through JSS, the bank may exercise its own judgement and determine the Tier for the borrower based on the definitions below.

Tier 1/2/3A/3B Sectors are defined by the Ministry of Finance as follows for JSS purposes:

  • Tier 1 and Tier 2 JSS Support Sectors:
    Aviation and Aerospace, Tourism, Hospitality, Conventions and Exhibitions, Built Environment, Licensed food shops and food stalls (including hawker stalls), Qualifying retail outlets, Arts and Entertainment, Land Transport, Marine and Offshore.
  • Tier 3A and 3B JSS Support Sectors:
    All other Sectors not in Tier 1 and Tier 2

For more details of the tiers, please refer to https://go.gov.sg/jss.

 

3. Who is eligible for the ESS-S?

ESS-S is available to existing UOB SME customers including sole proprietors and partnerships that by the implementation date of the ESS-S have:

  • No overdue interest payments on loans under moratorium; and
  • No more than 30 days past due on all other loan repayments

 

4. What are the credit facilities included under the ESS-S?

The ESS-S is applicable to these credit facilities:

  • Fully secured term loans,
  • Loans under Enterprise Singapore Temporary Bridging Loan Programme and Enhanced Working Capital Loan Scheme.

 

5. What does “fully secured term loans” mean?

It refers to term loans that are secured by collateral that the bank and finance company currently accepts for SME term loans. For movable collateral and floating charges, the bank and finance company may apply its internal haircuts to determine whether the loan is “fully secured” in relation to the scheme.

 

6. What does deferment of 80 per cent of the principal payment mean?

The deferment of 80 per cent of principal payment is based on the principal amount that you had been paying prior to the relief period.

For example, if you were paying a monthly instalment of S$10,000 comprising of: (i) principal amount of S$7,500 and (ii) interest amount of S$2,500 prior to the relief period, the deferment of 80 per cent will be applied to the principal amount of S$7,500.

 

7. What specific impact(s) from COVID-19 do I have to demonstrate to be eligible for the ESS-S?

You do not need to demonstrate any specific impact from the COVID-19 pandemic.

 

8. When can I start applying for the ESS-S?

You can submit your application between 2 November 2020 to 31 March 2021 if your business is in a sector in Tier 3, or from 2 November 2020 to 30 June 2021 if your business is in a sector in Tier 1 or Tier 2.

 

9. How do I apply for the ESS-S?

You may contact your Relationship Manager, or call us at 6439 5050 for more information.

You can also leave your contact details here for us to call you back.

 

1. What is the relief measure for hire purchase?

Borrowers can choose to defer payment of principal and pay only interest up to 31 Dec 2020.

 

2. Who is eligible for this relief measure for hire purchase?

The relief measure is applicable to all our existing SME customers who have:

  • fully secured hire purchase loans, regardless of type of collateral, taking into account the Bank’s assessment on collateral values
  • monthly instalments that are no more than 90 days past due as at 6 Apr 2020

 

3. What specific impact(s) from COVID-19 do I have to demonstrate to be eligible for this relief measure for hire purchase?

There is no requirement for you to demonstrate any impact from COVID-19.

 

4. What is the relief measure for secured block discounting loans?

Borrowers can choose to defer payment of principal and pay only interest up to 31 Dec 2020, on the portion of the loan relating to end- hirers that have served notification to UOB for relief under the COVID Act.

 

5. Who is eligible for this relief measure for secured block discounting loans?

The relief measure is applicable to all our existing SME customers who have:

  • fully secured block discounting loans for vehicles, taking into account the Bank’s assessment on collateral values
  • monthly instalments that are no more than 90 days past due as at 6 Apr 2020
  • been impacted by COVID-19 (proof of impact from end-hirers is required)

 

6. What is the relief measure for floor stock loans?

Borrowers can choose to extend the loan tenure up to 31 Dec 2020. Any proceeds from inventory sold must be used to pay down the loan.

 

7. Who is eligible for this relief measure for floor stock loans?

The relief measure is applicable to all our existing SME customers who have:

  • fully secured floor stock loans for vehicles, taking into account the Bank’s assessment on collateral values
  • monthly instalments that are no more than 90 days past due as at 6 Apr 2020

 

8. What specific impact(s) from COVID-19 do I have to demonstrate to be eligible for this relief measure for floor stock loans?

There is no requirement for you to demonstrate any impact from COVID-19.

Financing Assistance

Enhanced SME Working Capital Loan

Enhanced SME Working Capital Loan

Ease cash flow with the Enhanced SME Working Capital Loan, as announced in the Resilience and Solidarity Budget.

  • Secure a larger loan quantum of up to S$1million
  • Enjoy preferential low interest rates
  • Flexible repayment period of up to 5 years

 

 

Temporary Bridging Loan

Temporary Bridging Loan

Overcome immediate financial challenges with the Temporary Bridging Loan Programme, now expanded to include all businesses, as announced in the Resilience and Solidarity Budget.

  • Access financing of up to S$5million
  • Enjoy preferential low interest rates
  • Flexible repayment period of up to 5 years

 

 

Loan Insurance Scheme / Enterprise Financing Scheme Trade facility

Loan Insurance Scheme / Enterprise Financing Scheme Trade facility (EFS Trade)

Get additional credit support for your trade facilities under the Loan Insurance Scheme (LIS)/ EFS Trade as announced in the Resilience Budget.

  • Singapore Government will provide 80% subsidy for your monthly LIS loan insurance premium
  • Access financing of up to S$10million under EFS Trade facility

 

 

FAQs

1. What is Temporary Bridging Loan?

The Temporary Bridging Loan is introduced to help enterprises alleviate cash flow concerns during the COVID-19 pandemic.

 

2. How much can enterprises loan under the Temporary Bridging Loan Programme?

Under the Temporary Bridging Loan, eligible enterprises can borrow up to S$5million.

 

3. Who is eligible for the Temporary Bridging Loan?

Enterprises that are eligible for the Temporary Bridging Loan must meet the following:

  • A business entity that is registered and be physically present in Singapore;
  • At least 30 per cent local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.

 

4. Can enterprises apply for both the Temporary Bridging Loan and the Enhanced Enterprise Financing Scheme Working Capital Loan (Enhanced EFS-WCL) at the same time?

Yes. Enterprises can apply for both the Temporary Bridging Loan and the Enhanced EFS-WCL if they meet the criteria for each scheme. The approval is subject to assessment by the bank.

 

5. How do I apply for the Temporary Bridging Loan?

To apply, please contact your Relationship Manager, or call us at 6439 5050 for more information.

Alternatively, please submit your online application here.

1. What is the Enhanced EFS-WCL?

The Enhanced EFS-WCL is introduced to help SMEs address working capital needs during this period of uncertainty due to the COVID-19 pandemic. The Enhanced EFS-WCL is available to SMEs across all industries.

 

2. What are the enhancements?

The maximum loan quantum will be raised from S$600,000 to S$1million.

 

3. Who is eligible for the Enhanced EFS-WCL?

The Enhanced EFS-WCL is available to SMEs across all industries. SMEs who are eligible for the Enhanced EFS-WCL must meet the following:

  • A business entity that is registered and be 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.
  • Sales turnover of up to $100m; OR
  • Group employment size of up to 200 workers

 

4. Can SMEs apply for the Enhanced EFS-WCL multiple times with different Participating Financial Institutions?

Yes. SMEs can approach different Participating Financial Institutions to apply. The total aggregate amount borrowed must be capped at S$1million under the scheme, and subjected to the bank’s assessment.

 

5. Can SMEs apply for the Enhanced EFS-WCL if they had previously applied for the Enterprise Financing Scheme Working Capital Loan?

Yes, eligible SMEs can still apply for the Enhanced EFS-WCL, up to a total loan quantum of S$1million. The approval is subject to the bank’s assessment.

 

6. Can enterprises apply for the Temporary Bridging Loan and the Enhanced EFS-WCL at the same time?

Yes. Enterprises can apply for both the Temporary Bridging Loan and the Enhanced EFS-WCL if they meet the criteria for each scheme, subject to assessment by the bank.

 

7. How do I apply for the Enhanced EFS-WCL?

To apply, please contact your Relationship Manager, or call us at 6439 5050 for more information.

Alternatively, please submit your online application here.

Go Digital

As Singapore reopens in phases, businesses should continue to accelerate the adoption of digital solutions to diversify their income streams and build resilience for the future. Explore the digital and cashless solutions below, which will be able to work seamlessly with your business accounts.

Run your business remotely with UOB BizSmart

Through UOB BizSmart's suite of integrated solutions, SMEs can seamlessly manage multiple core processes such as sales, invoicing, payroll, and accounting remotely. The cloud-based platform can be connected to a UOB corporate banking account, giving you an up-to-date view of operations and company financials anytime, anywhere.

Create and send Peppol
e-invoices to local and overseas customers

Collect payments faster
with PayNow QR 
and NETS PayCollect

Manage payroll, leave, claims and attendance using HReasily

 

UOB customers can defray up to 70% of the setup cost under the SMEs Go Digital Programme. Plus, receive $200 from IMDA e-Invoicing Registration Grant by registering to join the Peppol Network by 31 December 2020

 

Manage human resource with HReasily

UOB BizSmart featuring HReasily, is a cloud-based human resource management system that allows SMEs to manage staff records, payroll, leave, claims, and attendance remotely with ease. With facial recognition software and GPS tracking, SMEs can track employees’ time and attendance even when they are working from home, and integrate the data automatically for payroll calculations.

UOB customers can enjoy 90 days free trial on Time and Attendance modules

 

Build your virtual store with Shopmatic

Shopmatic is an e-commerce platform that offers easy-to-use web templates and a user-friendly interface, so that you can showcase your products and services online in no time. To support your business’ digital push, we will connect you to Shopmatic’s e-commerce consultants who can provide digital marketing advice.

UOB customers can enjoy 30% off Shopmatic subscription plans and defray up to 80% of the setup cost under the SMEs Go Digital Programme

 

Connect your business to your online customers

Synagie offers easy-to-use, end-to-end e-commerce solutions to help SMEs expand into e-commerce and to manage multiple online sales channels more effectively for business growth. With Synagie’s solutions, every part of the e-commerce value chain can be managed or automated centrally and cost-efficiently, from inventory storage and management, digital marketing and multi-channel sales to distribution and fulfilment of customer orders.

Sign up for the Synagie Multichannel eCommerce Platform (MEP) package at a special price of S$2,000 (normally S$20,000), with 90% support from Enterprise Singapore. Valid for sign-ups from now till 31 December 2020.

 

Make an enquiry

Manage your F&B business digitally with Getz

Getz is a complete F&B management solution that enables you to easily set up your online and in-store contactless ordering service. The full-fledged solution also allows you to manage everything from in-store and online orders to payments, pickups and deliveries, on a single iPad. With Getz, you can drive sustainable sales growth at cost effective rates within days for your business.

Activate new sales channel by offering online ordering service with self pick-up or delivery options

Faster in-store ordering with mobile ordering and payment via QR code scan

Reduce cost by managing orders on one iPad with no additional manpower required

 

For UOB customers, enjoy low fees of 4% on online take-away/delivery sales and up to 9 months free trial with no setup or licensing fees. You can also defray up to 80% of the setup costs under the SMEs Go Digital Programme.

 

 

 

Manage payments and collections easily with FAST/PayNow FAST and UOB Infinity

 

 

SGQR (Singapore Quick Response Code)


PayNow has been incorporated into SGQR, Singapore's unified QR label. Receive payments directly into your UOB SGD Corporate Account when customers or business partners scan your SGQR code to pay you. Click here to register for SGQR.

UOB customers enjoy fee waivers on all incoming PayNow Corporate transactions to their UOB SGD Corporate Account from now till 31 December 2021. Terms and conditions apply

 

 

FAST/PayNow FAST


Transfer funds to individuals and businesses using their mobile number, NRIC or Unique Entity Number (UEN) with PayNow FAST. It’s secure and hassle-free, and you won’t need to share your business details or bank account number.

UOB customers using UOB Infinity can enjoy up to 100 single FAST/PayNow FAST transactions per month.
Please refer to the Terms & Conditions for details

 

 

 

UOB mCollect


UOB mCollect is a QR-based collections solution digitalises the cash-on-delivery model for businesses. By accepting scan and pay with PayNow, you can reduce the handling of cash and cheques and receive immediate notifications upon receipt of funds. The digital records mean one less pile of paperwork to vet through, while reducing associated risks for your delivery personnel. Click here to apply for UOB mCollect.

 

 

UOB Infinity (Digital banking for business)


Introducing a new digital banking experience for businesses that lets you customise your experience, track payments from end-to-end and allows for greater efficiency and convenience. Manage all your banking needs securely and with ease with UOB Infinity. Available as a mobile app and on desktop.

 

Digital Resilience Bonus

Go digital and receive Digital Resilience Bonus payouts of up to S$10,000

To help businesses adapt to new post-COVID norms, the government launched the Digital Resilience Bonus (DRB) as part of the Fortitude Budget.

The Food Services and Retail sectors will be the first to qualify for the DRB.

As a supporting bank, UOB can help you tap on these payouts when you adopt UOB’s digital solutions for your business.

 

Find out more

Apply online now, contact your Relationship Manager or call 6439 5050 for assistance

Apply now