{"id":69118,"date":"2023-12-19T13:32:57","date_gmt":"2023-12-19T05:32:57","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/?page_id=69118"},"modified":"2024-11-28T20:02:05","modified_gmt":"2024-11-28T12:02:05","slug":"temporary-bridging-loan","status":"publish","type":"page","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/resources\/business-compendium\/temporary-bridging-loan\/","title":{"rendered":"Temporary Bridging Loan"},"content":{"rendered":"<h2>Understanding the Temporary Bridging Loan<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-68822\" title=\"Temporary Bridging Loan\" src=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-content\/uploads\/2023\/11\/photo-business-compendium-temporary-bridging-loan-400x300-1.jpg\" alt=\"Temporary Bridging Loan\" width=\"400\" height=\"300\" srcset=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-content\/uploads\/2023\/11\/photo-business-compendium-temporary-bridging-loan-400x300-1.jpg 400w, https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-content\/uploads\/2023\/11\/photo-business-compendium-temporary-bridging-loan-400x300-1-300x225.jpg 300w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/>The Temporary Bridging Loan is a support scheme launched by the government in March 2020. It&#8217;s designed to help businesses navigate financial difficulties during the COVID-19 pandemic, providing them much-needed assurance that they&#8217;d have access to low-cost working capital to cushion cash flow issues.<\/p>\n<p>With the latest extension of the Temporary Bridging Loan, eligible companies now have the chance to borrow up to $1 million for a period of five years. It&#8217;s worth noting that the interest rate on the Temporary Bridging Loan is capped at 5.5%, reassuring businesses that it won&#8217;t go any lower.<\/p>\n<p>To ensure interest rates remain low and to motivate banks to grant these loans, the Singapore government is sharing 70% of the risk. Although companies are expected to repay the complete loan amount plus interest, the risk-share provision steps in when companies fail to meet the full repayment (i.e., in the case of default).<\/p>\n<p>&nbsp;<\/p>\n<h3>Where Can You Apply for a Temporary Bridging Loan?<\/h3>\n<p>If you&#8217;re considering a Temporary Bridging Loan, there are 18 financial institutions at your service. Some banks, like OCBC, even offer particular advantages such as a 50% discount on your facility cost (up to $500) when you apply for this loan.<\/p>\n<p>&nbsp;<\/p>\n<h3>Who Can Apply for a Temporary Bridging Loan?<\/h3>\n<p>Firstly, your business needs to meet certain criteria to be eligible for a Temporary Bridging Loan:<\/p>\n<ul>\n<li>The company needs to be at least 30% owned by Singaporeans or Permanent Residents.<\/li>\n<li>The company can be any of the following entities: Sole Proprietorship, Partnership, Limited Liability Partnership, or Company.<\/li>\n<li>The company must have been registered and physically operating in Singapore for at least six months.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Understanding Personal Guarantee Requirements<\/h3>\n<p>It&#8217;s important to know that business owners might need to pledge a 100% personal guarantee when applying for a Temporary Bridging Loan. As per Enterprise Singapore (ESG), this not only offers a form of security, but it also signals the guarantor&#8217;s commitment to the loan obligation.<\/p>\n<p>If your company finds itself unable to pay back the loan, the bank will first enact its typical commercial recovery procedures, before tapping into any unrecovered funds from Enterprise Singapore (ESG).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding the Temporary Bridging Loan The Temporary Bridging Loan is a support scheme launched by the government in March 2020. It&#8217;s designed to help businesses navigate financial difficulties during the COVID-19 pandemic, providing them much-needed assurance that they&#8217;d have access to low-cost working capital to cushion cash flow issues. With the latest extension of the&hellip;<\/p>\n","protected":false},"author":22,"featured_media":68822,"parent":70083,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-69118","page","type-page","status-publish","has-post-thumbnail","description-off"],"_links":{"self":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/pages\/69118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/comments?post=69118"}],"version-history":[{"count":1,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/pages\/69118\/revisions"}],"predecessor-version":[{"id":94406,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/pages\/69118\/revisions\/94406"}],"up":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/pages\/70083"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/media\/68822"}],"wp:attachment":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/media?parent=69118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/categories?post=69118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/tags?post=69118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}