It involves getting member businesses of the SBF to lend to one another.

SBF chief executive Teng Theng Dar said yesterday: 'There are times when... (you need) a non-bank solution, like capitalisation or special project financing.

"We have banking members (as well as) fund management companies and investment companies. What we're trying to do is to get these members to provide a Path B to help other members."

He summed up: "It's a for-business and to-business type of solution."

But bank lending appears to have eased.

According to enterprise agency Spring Singapore, the total number of loans approved by banks here in December last year numbered more than 200.

Last month, the number of approvals surged to 400.

Speaking to reporters at the Seminar on the Extraordinary Budget, which was jointly organised by SBF and the Singapore National Employers' Federation (SNEF), Mr Teng agreed: "Based on my interaction with members and some of the banks, I have the understanding that the borrowing situation is definitely much better.

But he admitted that the situation remains "quite challenging because for obvious reasons banks have to look at risk factors" when deciding whether or not to approve a loan.

Mr Teng also said that the business community has welcomed the Government's measures in the 2009 Budget, which they feel does help them address business costs and cash flow.

He said the jobs credit scheme in particular was "definitely a boost for the business community", and that some companies "are reviewing their manpower arrangements, so that's a good sign".