The Standards, Productivity, and Innovation Board (SPRING Singapore) is an agency under the Ministry of Trade and Industry. SPRING works with banks and other financial institutions to assist local enterprises with financing needs and skills development.
From start-ups to developing businesses, SPRING aims to provide both financial help and industry expertise.
SME LOAN PROGRAMS
In 2016, SPRING launched a suite of SME loan financing schemes fronted by the SME Working Capital Loan program. Through these programs, SPRING expects to create upwards of $2 billion in business financing over 3 years.
Under the scheme, Singapore-registered companies may apply for unsecured SME loans with the participating banks and financial institutions. SPRING Singapore acts as part-guarantor to the loans, making the business loans more accessible and ensuring that the loan rates are affordable for SMEs.
Due to the relatively small size of operations, SMEs often face difficulty in obtaining loans. Even if they able to, the approved amounts are often insufficient. SPRING aims to mitigate the problem by co-sharing a significant portion of the default-risk. In this way, the credit risk is floored for the participating lender, allowing them to issue the loan and at an attractive rate.
SPRING hopes that the various SME loan schemes will relieve short-term financing pressure, allowing businesses to grow and take advantage of new opportunities. The loan programs are especially important in light of the recent economic slump. Easier access to business financing would provide much-needed support for SMEs.
Follow the links below for more details on various SPRING SME Loans:
SME EQUIPMENT AND FACTORY LOAN
SME VENTURE LOAN