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 1800 226 6121 for more information.
You can also leave your contact details here for us to call you back.