Relief measures and digital solutions for SMEs

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 Extended Support Scheme – Customised (“ESS-C”)?

The ESS-C is intended to facilitate the restructuring of facilities for borrowers with more than 1 lender:

• for whom the ESS-S package is not suitable;
• who have exhausted efforts to work out arrangements bilaterally with individual lenders; and
• for whom the Credit Counselling Singapore’s scheme for Sole Proprietors and Partnerships (“SPP Scheme”) and Ministry of Law’s Simplified Insolvency Programme for qualified micro and small companies (“SIP”), if operational, are not suitable.

Under ESS-C, participating Banks and Finance Companies (“FIs”) agree to act jointly toward restructuring of the facilities granted to the borrowers.

2. Which Banks and Finance Companies are participating in the ESS-C?

The Banks and Finance Companies participating in the ESS-C are:

• Bank of China
• CIMB Bank
• Citibank
• DBS Bank
• HL Bank
• Hong Leong Finance
• HSBC Bank
• Indian Overseas Bank
• Industrial & Commercial Bank of China
• Maybank
• OCBC Bank
• RHB Bank
• Sing Investments & Finance
• Singapura Finance
• Standard Chartered Bank
• United Overseas Bank

3. Who is eligible for the ESS-C?

An SME must meet the following criteria and obtain a recommendation from one of its FIs (“Receiving FI”) to enter the ESS-C:

• It has credit facilities with more than one FI;
• It does not qualify for the Credit Counselling Singapore’s Sole Proprietor and Partnership Scheme (SPP Scheme);
• It does not qualify for the Simplified Insolvency Programme (SIP) (if operational);
• It has approached its FIs to restructure its credit facilities but the solutions provided were not sufficient/suitable.

The Receiving FI will assess if the ESS-C would lead to a better outcome for the borrower compared to the borrower dealing with each FI individually. If so, the Receiving FI can recommend the borrower to the ESS-C.

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

ESS-C covers all loans granted by FIs, including secured and unsecured loans, as well as loans granted under Enterprise Singapore (“ESG”) support schemes.

5. When can I apply for the ESS-C?

You can submit your application between 2 November 2020 to 30 June 2021.

6. How do I apply for the ESS-C?

You may fill up the ESS-C Application Package and submit it to your Relationship Manager together with the supporting documents, which include:

• Declaration of all its banking facilities;
• Latest financial statements;
• Financial projections; and
• Business plans.

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

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.