Singapore Business Federation’s Young Business Leaders Network (SBF-YBLN) HOPE Fund receives a S$50 million funding partnership boost with CIMB Bank Singapore and Goldbell Financial Services

The Singapore Business Federation’s Young Business Leaders Network (SBF-YBLN) announced today a S$50 million funding partnership with CIMB Bank Berhad, Singapore Branch (“CIMB”) and Goldbell Financial Services (“GBFS”) in support of the  SBF-YBLN “Helping Our Promising Enterprises” (HOPE) Fund that will bring further financial support to SMEs impacted by the COVID-19 pandemic. Under the new partnership agreement, SMEs who utilise the SBF-YBLN HOPE Fund will have priority access to CIMB’s COVID-19 financial schemes, C-19 and BizAssist.

Previously announced in February 2020, the SBF-YBLN HOPE Fund (see Annex A) that was set up by six prominent next-generation families in Singapore has seen consistent interest. To date, about 40 companies have benefited from the Fund, with close to S$2 million disbursed. GBFS will continue to disburse these loans to SMEs in need. However, in recent weeks, there has been a growing demand for further capital injection and funds needed to keep businesses afloat.

Mr Mark Lee, Vice Chair of the SBF-YBLN and CEO of Sing Lun Group, said, “We believe that as situations change, the SBF-YBLN HOPE Fund should also evolve in tandem in order to remain helpful and relevant for SMEs. The collaboration with CIMB Singapore will provide local businesses looking at short-term and/or long-term financial solutions with more options. Through such a tie-up, we believe we can more effectively help our promising enterprises tide over this challenging period with the support of CIMB with an extended loan quantum and tenure.”

The two financial schemes provide products that are offered under the CIMB Bank Enterprise Financing Schemes, with a preferred interest rate of 2.88%* for C-19 and 3.75%* for BizAssist respectively.

Mr Victor Lee, CEO of CIMB, said, “We were heartened to hear of the SBF-YBLN community coming together to raise funds for SMEs in need. We are pleased to be able to play a part and extend the runway and funding options exclusively for SBF-YBLN HOPE Fund borrowers. From the initial $50,000 working capital, we are now able to extend up to $5.0 million per borrower. Given today’s situation surrounding this global pandemic, coupled with the recent economic shocks, SMEs will be looking at a period of at least 18 months to survive the adverse business impact. As a bank, we are an integral player of the country’s ecosystem and it is important that during times of adversity, we show solidarity. This partnership enables us to cater to the immediate and long-term financial needs of SMEs by synergising our capabilities as a bank and leveraging the strengths of SBF-YBLN and Goldbell Financial Services.”

Mr Alex Chua, representative of SBF-YBLN HOPE Fund and CEO of Goldbell Financial Services, said, “The global pandemic came unexpectedly, leaving many SMEs clambering for support. We have had a good response to the SBF-YBLN HOPE Fund and want to do more. In our bid to continue to support as many SMEs as possible and maximise the impact to affected businesses, CIMB has kindly leaned forward to help us in our efforts to stretch our limited resources. This exclusive partnership with CIMB for the SBF-YBLN HOPE Fund enables us to create a seamless rhythm of financial relief to aid SMEs through these trying times. We will continue to do our part to review and disburse our SBF-YBLN HOPE Fund working capital loans as expeditiously as possible. But with the extension on CIMB’s network, we can now cast the net further and help even more businesses.”

Successful applicants of the SBF-YBLN HOPE Fund will enjoy CIMB’s preferential rates and terms. This includes:
  1. 2% facility fee waiver
  2. Preferential interest rate at 2.88% p.a. interest rate for C-19 (versus 3% p.a.)
  3. Preferential interest rate capped at 3.75% p.a. interest rate for Biz Assist (versus up to 7% p.a.)
  4. 4-month SBF-YBLN HOPE Fund interest rebate to SMEs capped at S$1,000
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Thursday, 9 April 2020