14 Jun BUDGET SPEECH 2016: HOW SME CAN BENEFIT FROM THE SME LOAN ASSISTANCE
Budget Speech 2016 was filled with positivity for our business owners. Finance Minister Heng Swee Kiat introduced a few measures to help SME manages the economic challenges. Briefly, other than enhancing the corporate income tax (CIT), from 30% to 50% of tax payable, with a cap of $20,000 rebate each year for YAs 2016 and 2017; to extending special employment credit, to encourage employers to employ the mature workers with wage offset incentives.
Another measure that Government has introduced is the SME Loan Assistance which is known as SME Working Capital Loan scheme. This is to support viable SMEs that may have cash flow issues or wish to expand business. SMEs can loan up to $300,000. The government will co-share 50% of the default risk of such loans with the participating financial institution so as to encourage lending of funds to the SMEs. The SME Working Capital Loan will be available for 3 years from 2016 to 2019.
At Inland Capital Services, we have put in place a systematic approach with our clients’ interest in mind which is to ensure the most appropriate funding recommendation for our clients to support their needs.
The choice of engaging the right consultant to oversee your business loan is crucial.
Call us now to find out more on the SME Loan Assistance.