Six local business families in Singapore have partnered to set up a $ 5 million Help Our Promising Enterprises (Hope) fund to provide short-term loans to SMEs affected by the COVID-19 outbreak.
The companies behind it are the Goldbell Group, the investment company Apricot Capital of the founder of the Super Group, the Ho Lee Group, the Paradise Group, the Sing Lun Group and the Soilbuild Group, which work together with the Young Business Leaders Network of the Singapore Business Federation.
SMEs whose companies are affected by the corona virus can use the fund to apply for working capital loans for up to 12 months.
This means that every company can take out a fixed loan of S $ 50,000, from which around 100 companies are expected to benefit.
The working capital loans are granted at a loan rate of between 0.5 and 0.75 percent per month, compared to the industry-standard interest rate, which is well between 7 and 18 percent per year.
Borrowers will also be allowed to postpone loan capital and interest repayment from the third month.
To cover administrative costs, a processing fee of S $ 80 is charged, which is only 0.16 percent, while most platforms charge one to two percent.
The Hope Fund is available to companies that have been resident in Singapore for 12 months or more and have at least 30 percent of Singaporean shares and a minimum deposited capital of S $ 25,000.
Applications will open on February 26, 2020, and companies will be matched against funds via Goldbell's private debt investment platform, Goldbell Evolution Network.
You can also get your loan within 24 hours of approval.
"We understand the urgency of the situation and have developed a credit rating model for this program that allows loans to be approved quickly and paid out within 24 hours of approval," said Alex Chua, CEO of Goldbell Financial Services.
Mark Lee, CEO of Sing Lun, added: "We want to help companies with good business models to overcome this crisis, to give them the opportunity to build a stronger business while helping to keep jobs for our community."
Selected image source: Goldbell, Paradise Group