How Helpful Will Rental Agreement be for SMEs in Singapore?
The restrictions in place due to the virus in Singapore are easing down. The phase-2 of the lifts has already started, and it is a green light for most of the companies to operate, keeping safety measures in check. However, companies are still recovering from the financial damages the pandemic caused.
It seems that the Singapore government is in the process of bringing more relief for businesses.
Rental Reliefs in Singapore
Companies with physical stores are the ones that are most affected by the pandemic. Some had to close their operations altogether, especially if online transactions were not possible. In such cases, every little help would matter a lot, and one of them in the Singapore budget 2020 payout was the rental relief.
Rental Relief for SMEs in Singapore
During the circuit breaker, companies would get a rental relief of two months which would be paid by the government. Firms in government property would get a total relief of four months. Furthermore, during the initial period of distributing the rental waiver, the government had urged landlords to grant an additional two months discount if their tenants hadn’t made a lot of income.
As of now, the request that the government made in the previous stage is an official rule. Companies whose revenue declined more than 35% in April and May will be given rental discounts for an additional two months by their landlord.
What if the Landlord isn’t in the Position of Giving the Financial Grant?
Singapore Rent Waivers and Support are meant to bring a balance in everyone’s revenue. So, if landlords themselves have financial difficulties, they can apply for an assessment.
Is there any Special Eligibility for Companies to Receive the Rental Grants in Singapore?
The previous two months of rental grants were given to every SME. However, for the additional two months, as we said before, a company should have recorded a significant decrease in their profits.
In the entire period of the circuit breaker, companies in the agriculture, industrial, and commercial office sectors have gotten a rental waiver of two months. The government will reimburse the landlord for one month in this case.
The companies getting the additional two months rental waiver shouldn’t have made more than $100 million in 2019 and should have entered into the rental contract before 25 March 2020.