Relief measures and digital solutions for SMEs

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.

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 one 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 1800 226 6121 for more information, or leave your contact details here for us to call you back.

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$3 million.

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. How do I apply for the Temporary Bridging Loan?

To apply, please contact your Relationship Manager, or call us at 1800 226 6121 for more information.

Alternatively, please submit your online application here.