1. What is the Extended Support Scheme – Standardised (ESS-S)?
The ESS-S is an opt-in scheme for eligible 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 July 2021 until 30 September 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 and 2 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.
For details of JSS 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 borrowers including sole proprietors and partnerships that by the implementation date of the ESS-S have:
- No more than 30 days past due on all loan repayments; and
- No overdue repayment on loans under moratorium
4. What are the credit facilities included under the ESS-S?
The ESS-S is applicable to these credit facilities:
- Fully secured term loans and hire purchase loans,
- Loans under Enterprise Singapore Temporary Bridging Loan Programme and Enhanced Enterprise Financing Scheme – SME 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?
Depending on the circumstances, “principal” could refer to the principal amount that would otherwise have been payable during the corresponding relief period, or the principal amount of the payment just prior to the relief period.
Example 1: Borrower A who is currently not under ESS-S is 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.
Example 2: Borrower B who is currently under ESS-S is paying a monthly instalment of S$4,000 comprising of: (i) 20 per cent of the principal amount at S$1,500 and (ii) interest amount of S$2,500. Borrower will continue to pay the same monthly instalment of S$4,000 for the next 3 months up to September 2021.
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 from now until 30 September 2021.
9. How do I apply for the ESS-S?
You may contact your Relationship Manager, or call us at 1800 226 6121 for more information.
You can also leave your contact details here for us to call you back.
