That was the question on the minds of local businesses and industry bodies yesterday, even as they enthusiastically welcomed the new measures to provide extra loans to businesses.

At the same time, they say they still need further help to cut business costs.

'It's a lifeline for the good companies that are struggling for survival,' said Mr Chan Chong Beng, chairman of interior furnishings firm Goodrich Global.

Trade associations also hailed the new measures as 'timely', 'encompassing' and most importantly, able to address the 'immediate concern of businesses' - that of financing.

Amid the economic crisis, some local firms have found new bank loans tough to come by.

Yesterday's measures aim to free up more credit by reducing the level of risk borne by banks through raising the government guarantee on these loans. They also make more loans available to more companies.

Of the measures, the new bridging loan programme that allows companies to draw up to $500,000 for working capital, basically operating costs, was identified by some firms as especially helpful.

Mr Charles Wong, founder of shoe retailer Charles & Keith, said he had given up hopes of getting a bank loan given the credit crisis. But the new measures give him hope that this will change.

Mr Renny Yeo, president of the Singapore Manufacturers Association said: 'These...measures are especially helpful to companies who are currently contemplating retrenchments. I am sure they will now look at the situation differently.'

Following the announcement yesterday morning, word spread fast among local firms and industry bodies.

Mr Vijay Iyengar, the chairman of the Singapore Indian Chamber of Commerce and Industry, told The Straits Times when contacted, that he was preparing to brief his members about the schemes.

The measures take effect on Dec 1 but some firms have already called up banks to inquire about the new loan schemes.

However, concerns still remain.

Mr Lawrence Leow, president of the Association of Small and Medium Enterprises, said: 'The question is whether the financial institutions are now willing to loosen credit with these new measures.'

A spokesman for Spring Singapore confirmed that the banks will still perform their usual due diligence procedures before granting loans.

Bosses of small and medium-sized enterprises (SMEs) were concerned that not only would the screening process be lengthy, but the application process too.

Mr Vincent Oh, who invented a technology that turns air to drinkable water and founded the local water solutions company Aridtec, said: 'I have tried applying for schemes like Seeds, Lefs and Micro loans in the past and the application process is extremely onerous.'

Mr Leow urged the banks here to consider and process loan applications more quickly.

SME bosses also said that business costs remain a huge challenge for firms.

Mr V.S. Kumar, managing director of Network Courier said: 'We need help in cutting utilities or rental costs, even ERP (electronic road pricing).

'The new schemes are a pillar to lean on, but we still have to plan out carefully how we want to operate our business for the long run.'

chanckr@sph.com.sg

Additional reporting by Francis Chan