1.The SME Working Capital Loan was announced at Budget 2016 to help viable SMEs access working capital and continue growing their businesses. The scheme complements existing Government loan schemes and commercial loans offered by financial institutions. Since its launch in June 2016 to December 2016, the SME Working Capital Loan has catalysed more than S$700 million in loans, benefitting approximately 4,300 SMEs.
2.Based on the 2016 DP Information Group SME Development Survey, 96% of SMEs which applied for Government and commercial working capital term loans of five years and below were successful in their applications. This comprised 79% who received the full amount requested, and 17% who received partial approved amounts.[1]
3.82% of the approved loans under the SME Working Capital Loan are less than the maximum quantum of S$300,000. The current scheme is therefore sufficient to meet the needs of most applicants. The Government has regular meetings with the financial institutions and chambers and associations to understand and monitor the financing needs of SMEs, and is prepared to provide greater assistance if necessary.
[1] DP Information Group surveyed SMEs on the outcome of their financing applications, which included applications for both Government and commercial working capital loans. The high percentage of approvals for full and partial amounts implies that SMEs were able to access financing to address cash flow concerns or for business growth.