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The Bridging Loan Programme under
the Local Enterprise Finance Scheme (LEFS) is
a fixed interest rate financing programme that
was launched in April 2003 to help small and medium
enterprises in SARS-affected tourism-related sectors
gain access to short-term working capital so as
to alleviate their immediate cash-flow problems.
Eligible SMEs can borrow up to $100,000 to augment
their working capital needs. The programme will
now be extended to all SMEs and the facility will
be offered up to 31 December 2003. The programme
is administered by SPRING Singapore and is offered
through 14 Participating Financial Institutions.
Eligibility Criteria
To be eligible, a company must satisfy
the following conditions :
| a. |
It must have at least 30% local shareholdings.
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| b. |
Its fixed asset investment (at net book
value) must not exceed $15 million*.
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| c. |
If it is in the service industry, it must
also have an employment size not exceeding
200 workers*.
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* Computed on a group basis i.e.
checking up to 3 levels for corporate shareholders
holding 20% or more of the total shareholding
of the company and 1 level down where the company
holds 50% or more of the total shareholding in
a subsidiary company.
FAQs
| 1. |
What are the type of facilities under the
Bridging Loan Programme and what can it
be used for?
The Bridging Loan Programme is a working
capital term loan facility. Companies can
make use of the bridging loans to augment
their working capital needs like operational
or business restructuring costs.
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| 2. |
Is there an administrative fee for the
loan?
Yes, the Participating Financial
Institution may impose an administrative
fee for the processing of the loan. Please
refer to the Participating Financial Institutions
for more details.
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| 3. |
How
long will it take for the loan to be approved?
The Participating Financial Institutions will
generally take about a week to process the
loans, provided all supporting documents for
the loan applications are provided. |
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| 4. |
How do I apply for the Bridging Loan Programme?
What are the supporting documents necessary
to support my application?
Applications for the Bridging Loan Programme
should be made on prescribed form (available
at any of the 14 Participating Financial
Institutions), fully completed and submitted
to the respective Participating Financial
Institutions. Before submitting the application
form, it is best that the company meet up
with the preferred Participating Financial
Institution first to discuss its loan requirements.
SME will need to provide the following
information to support its Bridging Loan
application :
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| 5. |
Who
are the Participating Financial Institutions
under the Bridging Loan Programme?
The Bridging Loan Programme is offered through
14 Participating Financial Institutions :
- DBS Bank
Ltd
- GE Commercial
Financing (Singapore) Ltd
- Hongkong
& Shanghai Banking Corporation Ltd
- Hong Leong
Finance Ltd
- Indian Bank
- International
Factors (Singapore) Ltd
- International
Factors Leasing Pte Ltd
- Malayan Banking
Berhad
- OCBC Finance
Ltd
- Orix Leasing
Singapore Ltd
- Oversea-Chinese
Banking Corporation Ltd
- Sing Investments
& Finance Ltd
- Standard
Chartered Bank
- United Overseas
Bank Ltd
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| 6. |
What is the maximum loan that I can borrow
under the Bridging Loan Programme?
Eligible enterprises can borrow up to S$100,000
under the Bridging Loan Programme subject
to the credit evaluation of the Participating
Financial Institutions. Each enterprise
is subject to a maximum exposure of S$100,000
(inclusive of loans approved under the Bridging
Loan Programme and the Micro Loan Programme).
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| 7. |
I have an existing Micro Loan of S$50,000.
What is the maximum loan that I can borrow
under the Bridging Loan Programme?
Eligible enterprises can borrow up to a
maximum of S$100,000 under the Bridging
Loan Programme (including previous loans
approved under the Micro Loan Programme).
Hence in this case, the enterprise can only
avail itself of another S$50,000 under the
Bridging Loan Programme.
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| 8. |
Is there a validity date to the Programme?
Yes. The programme is valid till 31 December
2003.
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Enquiries
For the Local Enterprise Finance
Scheme (LEFS), Bridging Loan Programme, and Loan
Insurance Scheme (LIS), enquiries can be made
at any of the Participating Financial Institutions
or the SPRING Singapore's SME First Stop Hotline
at 68981800.
You can access the SPRING
website at http://www.spring.gov.sg/
for more details.
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