Singapore’s DBS Bank is planning to extend its support toward social enterprises. It is reported that the bank has already provided loans worth $5.23 million so far this year.
DBS, told the media, “Much of this support has gone towards creating and preserving livelihoods, with many of the SEs using the funds to create and retain jobs that hire people from disadvantaged communities. Access to working capital was an immediate priority for many SEs when the pandemic emerged, but many of them faced challenges in getting loans as they typically lacked a borrowing history with banks or relevant credit profiles.”
DBS launched its own SE digital loan earlier this year. It covers the working capital needs at preferential rates. The bank has also started to provide business loans for social enterprises. The loans are being provided at a preferential interest rate. Apart from that, there is also a temporary bridging loan for short term relief assistance.
The DBS foundation has extended its support towards social enterprises by providing S$1.4 million to 13 social enterprises in countries such as Singapore, China, Hong Kong, India, Indonesia and Taiwan as part of its social enterprise grant programme 2020. In addition, the foundation has provided S$2 million for social deployment for social enterprises.
The 13 participants for the grant programme were chosen among 820 applicants based on criteria such as social impact, innovation sustainability and scalability of business models. The participants were also required to be involved in other business activities.