Updates to the working capital loan initiative by Singapore Government
Updates to the working capital loan initiative by Singapore Government – Singapore and the rest of the world is right now going through a recession. The slowdown in tourism and also retail sales together with the shutdown of many economies around the world is causing almost every other country in the world to kick into recession.
Singapore is expected to be badly hit with the slowdown in trading around the world. The fall in oil prices are expected to cause more falls in the economy than any gain.
Singapore is highly exposed and with many businesses going through this tough period of time, we are expected to see bankruptcies and tough times. There has been a new package that the Singapore government is going to kick in soon through the newly announced resilience package that is added to the budget that the government has just announced.
Singapore is prepared to pay for salaries of staff members and also will be working closely with businesses to ensure that employees are kept in employment around the whole industry.
The tourism and air travel industry is currently very badly hit with almost no means of traveling by air right now. Singapore Airlines has seen grounded most of its flights and will be kept in this manner for an extended period of time. We expect to see this maintain for a few months and if the condition of this virus does not get better, we will see even more downward spiraling of businesses.
Under the new initiative, interest rates are expected to fall and the government will be still supporting 80% of default if it happens. We are also looking at an increase of the quantum to $1 million which will help many SMEs to make it through this tough few months before we will start to see an improvement in the economy and also the situation around the globe.
Avant Consulting is our partner in assisting clients with Singapore Bank Loans Application and also to get your SME Loans in Singapore done up properly. Speak to them to get an assessment of your business now.