The Temporary Bridging Loan Programme has been extended till September 2022. Here’s what you need to know about the latest revisions.
The Temporary Bridging Loan Programme (TBLP) was launched in 2020 as part of the government’s effort to help businesses in Singapore weather the economic upheavals wrought by the COVID-19 pandemic.
It is essentially a business loan programme offering working capital to beleaguered enterprises to help them save jobs and keep their operations afloat.
However, unlike other business loans, the government co-shares the risk of lending. Should the borrower default on the loan, the lender may make an appeal for the authorities to make good on a portion of the debt.
This co-sharing arrangement makes the programme a lot more palatable to lenders, while making it easier for floundering businesses to gain a crucial lifeline.
As stated in its name, the TBLP will be phased out once it has served its purpose, and economic conditions stabilise. To that end, periodic extensions are announced for the programme, with the latest putting the scheme’s end date on 30 September 2022.
Along with an update on the duration of the TBLP, other changes were also announced. So in case you’re looking to borrow some working capital, here are all the latest details.
At-a-glance: Temporary Bridging Loan Programme
|Interest rate||Up to 5.5% per annum|
|Maximum loan amount||Up to S$1 million (overall borrower group limit of S$20 million)|
|Loan tenure||Up to 5 years|
|Government risk sharing||70%|
|Availability||Until 30 Sept 2022|
|Eligibility||ACRA-registered business entity that is physically present in Singapore|
At least 30% equity held by Singapore citizen or Permanent Resident
How much can I borrow under the TBLP?
The TBLP is offered in phases. For its latest phase, lasting from 1 April 2022 to 30 Sept 2022, the maximum loan amount is capped at S$1 million, subject to an overall borrower group limit of S$20 million.
The borrower group includes the principal borrower, corporate shareholders holding 50% or more, and subsidiaries that are at least 50% owned by the parent company.
What is the interest rate of the bridging loan, and how long can I take to repay the loan?
Bridging loans extended under this scheme have a maximum interest rate of 5.5% per annum. This has been increased slightly from the last phase ended 31 March 2022, during which the interest rate was capped at 5% per annum.
The maximum tenure of the loan, however, has remained unchanged. You will have up to five years to repay the bridging loan.
What is the government risk sharing rate, and how does it work?
The Singapore government has pledged to shoulder up to 70% of the debt should your bridging loan fail to be repaid.
However, this does not mean that borrowers need only pay back 30% of the loan. You (and your guarantor) are still responsible for repaying 100% of the loan amount, and will be fully liable for any default.
The lender is obligated to pursue standard recovery procedures against the borrower, before they can submit a claim to the government for the unrecovered amount.
In other words, failing to repay your bridging loan will create legal repercussions, so don’t be tempted to treat it as free money.
How to apply for a Temporary Bridging Loan?
List of participating financial institutions for TBLP
The TBLP is offered by Enterprise Singapore in conjunction with several banks and financial institutions on the island.
There are a total of 16 such participating financial institutions (PFIs), as shown in the following table.
|Temporary Bridging Loan Programme PFIs||Contact details|
|CIMB Bank||6438 7888|
|DBS Bank||1800 222 2200|
|ETHOZ Capital||6654 7799|
|Goldbell Financial Servicesfirstname.lastname@example.org|
|HSBC||1800 216 9008|
|Hong Leong Finance||1800 3388 338|
|IFS Capital||6270 7711|
|Maybank||1800 777 0022|
|ORIX Leasing Singapore||6339 3622|
|Resona Merchant Bank Asia||6224 7155|
|RHB Bank||1800 323 0100|
|Sing Investments & Finance||6305 0300|
|Singapura Finance||6880 0688|
|Standard Chartered Bank||1800 747 7000|
|UOB||1800 2266 121|
How to apply
Follow these steps to apply for a Temporary Bridging Loan
- Select the bank or financial institution you would like to borrow from.
- Download the TBLP application form from Enterprise Singapore.
- You’ll need to gather and complete the relevant documents required for your application. Follow the steps in this online guide to help you along.
- Once ready, submit your application to your chosen PFI and wait for them to contact you.
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