DBS announced that it will further bolster its liquidity relief support for SMEs impacted by COVID-19 by increasing the quantum of its Digital Business Loan to SGD 200,000. This is double the upsized SGD 100,000 quantum announced on 3 April 2020, and four times the original quantum of SGD 50,000 when the relief measure was first introduced on 26 February 2020.
Joyce Tee, Group Head of SME Banking, DBS, said, “DBS is fully supportive of the newly announced measures in the Solidarity Budget to protect lives and livelihoods amidst this COVID-19 crisis. DBS stands shoulder to shoulder with our customers, and today, we will be further ramping up our support for the SME community. We hope that by significantly beefing up the Digital Business Loan, SMEs can now access even more substantial working capital support to weather the economic fallout from COVID-19.”
The Digital Business Loan will continue to be collateral-free, with SME clients needing to service only interest for the first 12 months, up from the original three-month interest servicing period announced on 26 February 2020. DBS will continue to waive all processing fees, usually pegged at 1% of the loan quantum associated with this loan.
Today’s announcement is in addition to DBS’ third round of liquidity relief measures for SMEs announced on 3 April 2020, which includes the introduction of a nine-month principal repayment moratorium for SMEs refinancing their commercial property loans with DBS.
The Digital Business Loan adds to the raft of relief measures that DBS has made available to SMEs, including a six-month principal repayment moratorium for existing SME property loans, and an extension of import facilities of up to 60 days to act as immediate cash flow support.
Since the launch of the DBS F&B Digital Relief Package two weeks ago to help F&B establishments tap new income streams by building their online presence in just three days. DBS is in the process of onboarding more than 70 F&B businesses from household chains to hotels, standalone cafes and restaurants which combined, number more than 100 F&B outlets.
Tee added that the bank will continue engaging its SMEs and industry partners to address the specific needs of different sectors during this period. It aims to introduce more of such targeted relief packages in the coming weeks to support different SME segments.
DBS has also begun advising SME customers keen on tapping the relief measures announced by the Monetary Authority of Singapore on 31 March 2020. These include allowing SMEs banking with DBS to choose to defer principal payments on all secured term loans up to 31 December 2020, subject to eligibility. SMEs will also be able to extend the tenure of their loans by up to the corresponding principal deferment period if they wish. This relief will be available to SMEs that are not more than 90 days past due as of 6 April 2020.
About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
