The bank disbursed S$7 million ($5.23 million) in loans to social enterprises so far this year, up fourfold from 2019.
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, DBS said in a statement on Thursday.
DBS said that 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.
The bank rolled out its SE Digital Business Loan in May this year, which covers working capital needs at preferential rates. The bank also offers the Social Enterprise Business Loan which provides unsecured loans at a preferential interest rate, and the Temporary Bridging Loan, which provides short-term relief assistance.
In addition, DBS Foundation awarded S$2 million in grants to social enterprises (SEs) to support the deployment of social innovations. The funding includes S$1.4 million given to 13 SEs in six of the bank’s key markets (Singapore, China, Hong Kong, India, Indonesia and Taiwan) in the 2020 cycle of its DBS Foundation Social Enterprise Grant Program.
Two were from Singapore: Ento Industries – a biotech focused on reducing food waste, and Zigway, a ASEAN-focused fintech that makes bulk buying affordable for low-income families through a monthly subscription model.
Recipients were chosen from a record 820 applications across Asia, based on social impact, innovation, as well as the sustainability and scalability of their business models. They were also required to demonstrate a path to achieving key business and social impact milestones.
DBS noted the increasing recognition for the role SEs play in society.
In the world we’re living in today, companies must not only think about delivering value to shareholders, but also consider the interests of the communities they serve. This has really come to the fore amidst Covid-19, which has sparked unprecedented social and economic challenges – yet, these very issues have also heightened opportunities for social enterprises to make a difference, and helped to cement the importance of their role in society, Karen Ngui, Board Member of DBS Foundation, said in the statement.