Eligible customers will be contacted this week and can access funds in two business days
United Overseas Bank (UOB) today announced that it will be offering pre-approved loans of up to S$200,000 to help ease the short-term liquidity woes of its small business customers1 impacted by the COVID-19 pandemic.
With small businesses making up two in three of all small- and medium-sized enterprises in Singapore2, UOB’s collateral-free loans will help many of these companies, especially those from hard-hit sectors such as retail and food and beverage, gain access to much-needed funds quickly.
The Bank has also been active in helping customers understand and apply for the government-assisted financing schemes administered by Enterprise Singapore.
The pre-approved loans will be offered to UOB’s small business customers with a good repayment track record and at least a 12-month borrowing relationship with the Bank. UOB will contact all of its small business customers which are eligible for the pre-approved loan by the end of the week. To receive their funds as quickly as in two business days, UOB customers only need to authenticate their company information through MyInfo Business or to submit details such as their company name and their contact number.
Mr Lawrence Loh, Head of Group Business Banking, UOB, said, “As the impact of COVID-19 on business operations continues to weigh heavily on small businesses, we have seen more customers seeking loans in order to provide their businesses with a much-needed cashflow injection. For example, we have approved three times more loans to small businesses in March as compared with January this year, when the outbreak first started in Singapore.
“The reality is that small businesses already operate on tight cashflow and do not have the liquidity to withstand the prolonged economic shock that is expected from the COVID-19 pandemic. As such, they require urgent access to funding in order to stay afloat. This is why we are proactively providing preapproved loans for our customers to tap this source of funds as needed. We hope that through this relief measure, our customers will have one less thing to worry about as they try to minimise the disruption to their businesses,” Mr Loh said.
Small businesses which take up the pre-approved loan will also have the option to service only the interest on their loan until 31 December 2020.
1 Defined as companies with a turnover of less than S$20 million.
2 According to UOB data and the Singapore Department of Statistics.
