The Temporary Bridging Loan Programme (TBLP) and Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) were introduced under the Solidarity Budget 2020 in response to the COVID-19 outbreak, and are undertaken by Enterprise Singapore (ESG).
Both schemes seek to provide cash flow support for enterprises across the various sectors, with the government taking on 90 per cent risk share on loans till 31 March 2021. These schemes were implemented to help enterprises tide over tough times amidst the COVID-19 pandemic. TBLP has a maximum loan quantum of $5 million, with the interest rate at 1.3% flat rate (2.5%) per annum, and the EFS-WCL has a maximum loan quantum of $1 million.
The maximum loan tenure for both schemes is 5 years. No principal repayment is required for the first 12 months, but both principal and interest repayment are necessary for the remaining loan tenure. Enterprises in need of working capital may apply directly to the Participating Financial Institutions (PFIs) for the loan, subject to certain eligibility criteria.