MAS extends support facility for SMEs

The extension is from 1 October 2021 to 31 March 2022.

The Monetary Authority of Singapore (MAS) will extend the MAS Singpapore Dollar (SGD) Facility for Enterprise Singapore’s (ESG) Loans to complement the six-month extension of ESG Temporary Bridging Loan Programme (TBLP) from 1 October 2021 to 31 March 2022.

The MAS SGD Facility for ESG Loans provides low-cost funding for banks and finance companies to grant loans under ESG’s TBLP and Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL). 

The TBLP provides additional cash flow support for Singapore-based companies in all sectors to meet their working capital needs, while the EFS-WCL helps Singapore-based small and medium enterprises (SMEs) access financing for their operational cash flow needs. 

According to MAS, the Facility will continue to provide SGD funding at an interest rate of 0.1% per annum for a two-year tenor to eligible financial institutions (EFIs), to support loans made under the ESG Loan Schemes from 1 October 2021 to 31 March 2022.

MAS said that since its introduction in April 2020, the Facility has disbursed a total of $13.3b to EFIs in support of their lending to companies under the ESG Loan Schemes. 

“Collectively, the government’s risk-sharing through the ESG Loan Schemes and MAS’ lower-cost funding through the Facility will continue to keep borrowing costs low for local enterprises, as they recover and adapt to the new normal,” MAS said.

This was echoed by Minister of Finance Lawrence Wong in a mministerial statement, saying: "During times of crises [COVID-19 pandemic], we recognise that lower-income households and SMEs face bigger challenges; that is why we have designed our interventions to benefit them the most."