A hand with offering LoansSME Loans under Enterprise Financing Scheme (EFS) in Singapore

Whether you are planning to develop new capabilities, create new products or expand your business footprint overseas, having access to the right financing is crucial to realise your growth ambitions.
With effect from 29 Oct 2019, Enterprise Singapore’s existing financing schemes have been streamlined into one umbrella scheme known as the Enterprise Financing Scheme (EFS). EFS will enable Singapore enterprises to access financing more readily throughout their various stages of growth.
It covers six areas to address enterprises’ financing needs. Enterprise Singapore will share the loan default risk in the event of enterprise insolvency with the Participating Financial Institutions.

Learn about Loans under Enterprise Financing Scheme (EFS) with all links


Different types of Loans available under Enterprise Financing Scheme (EFS) in Singapore



 Finance daily operational cashflow needs.

As announced at Solidarity Budget 2020, the Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) is enhanced to help SMEs with their working capital needs. The maximum loan quantum was raised from $300,000 to $1 million. Risk-share was also increased to 90% (from 50% and 70% for young companies) for new applications initiated from 8 April 2020 until 31 March 2021.

Enterprises under the Enhanced EFS-WCL may apply for up to 1 year deferral of principal repayment to help manage their debt, subject to assessment by the PFIs.



Finance the investment of domestic and overseas fixed assets, including:

  • Purchase of equipment and machines for automation and upgrading
  • Construction or purchase of government and commercial built factories and business premises



Finance the growth of innovative enterprises using Venture Debt and Warrants.

This form of financing is typically suited for high growth start-ups that do not have significant assets to be used as collateral under traditional bank lending. The warrants, or rights to purchase equity, is to compensate for the higher risk of loan default.

Enterprises may use the Loan to:

  • Grow and expand existing capacity
  • Diversify into other product lines
  • Augment working capital needs
  • Undertake new projects
  • Undergo merger and acquisitions



Finance trade needs, including:

  • Inventory / stock financing
  • Structured pre-delivery working capital (revolving working capital)
  • Factoring (with recourse) / bill of invoice / AR discounting
  • Overseas working capital loan

EFS Trade Loan covers enterprises’ domestic and overseas transactions. It also complements the current Loan Insurance Scheme (LIS) by insuring loans which are beyond the capacity of current LIS insurers.



Finance the fulfillment of secured overseas projects. The supportable loan types include:

  • Working capital and trade loans
  • Equipment / machinery / vessels / other fixed assets
  • Guarantees



Finance the acquisition of target enterprises with the intent of internationalisation.

Overall loan exposure limit of S$50 million per borrower group across all facilities.


A higher risk share will be considered for the following:

  • Young companies within 5 years from inception; and
  • Markets with Standard & Poor’s (S&P) ratings of below BBB- or are not rated.
  • In light of COVID-19, the food & beverage, retail and tourism establishments are required to comply with the SAFE DISTANCING MEASURES to be eligible for EFS.
  • For more information, please click the downloadable link.


Loan application on a writing padWHO CAN APPLY?

To qualify for the EFS, you need to:

  • Be a business entity that is registered and physically present in Singapore.
  • Have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.
  • Have a Maximum Borrower Group revenue cap of S$500 million for all companies.


  • For “SME Working Capital” and “SME Fixed Assets”, SMEs refer to companies with a group revenue of S$100 million or maximum employment of 200 employees.


Frequently Asked Questions (FAQs) about Enterprise Financing Scheme (EFS)


When is the Enterprise Financing Scheme open for application?

The programme was launched on 29 October 2019. Enterprises can approach the PFIs to apply.


Can businesses apply for the Enterprise Financing Scheme multiple times with different banks?

Yes. Enterprises can approach the participating financial institutions to apply.


How will this affect existing loans under the current schemes?

There will be no changes to approved loans. The existing loans will remain valid for the tenure of the loan. The current schemes will be subsumed under the new Enterprise Financing Scheme (i.e. retired).


How is Enterprise Singapore’s Enterprise Financing Scheme different from previous financing schemes managed by SPRING and IE Singapore?
  •  The streamlined Enterprise Financing Scheme will have common eligibility criteria and application platform to simplify application process for businesses
  • Enhanced support for young enterprises (incorporated within the last 5 years from date of scheme application)
  • Enhanced support for markets with Standard & Poor’s (S&P) ratings of below BBB- or are not rated


Are there any specific industries that the Enterprise Financing Scheme is targeted at?

No, the Enterprise Financing Scheme is designed to support companies across all industries throughout all stages of growth.


Does Enterprise Financing Scheme help newly established businesses secure financing?

Yes. To help young companies*, Enterprise Financing Scheme will provide government risk sharing of up to 70% to participating financial institutions (PFIs). This aims to help catalyse participating financial institutions’ lending to these companies.

 *Young companies refer to firms incorporated within the last 5 years.


Since Enterprise Singapore risk shares 50%/70%/80% of the loan, does it mean that the borrower/guarantors are only responsible for the remaining percentage of the loan?

No. The borrower is responsible for repayment of 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to risk share percentage.


Downloadable File With All Links
Learn about Loans under Enterprise Financing Scheme (EFS) with all links


Source of Information, Guidelines, Compliance, Laws, Rules & Regulations is from the websites of relevant authorities of Singapore
Details of Source Name of Authorities
  • Corporate matters such as Companies, Businesses, Societies, Grants, SME Loans, etc
  • The Accounting and Corporate Regulatory Authority (ACRA), Building Construction Authority (BCA), Enterprise Singapore (ESG), Monetary Authority Of Singapore (MAS), Singapore Stock Exchange (SGX) & Registrar Of Societies (ROS), Enterprise Singapore (ESG)
  • CPF matters
  • CPF Board
  • Fair Employment Practices (FEP)
  • Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP)
  • Immigration matters & Student Passes
  • Immigration Checkpoints Authority (ICA)
  • Taxation and GST
  • The Inland Revenue Authority of Singapore (IRAS)
  • Skills Development Levy (SDL)
  • SkillsFuture Singapore Agency
  • Work Passes
  • The Ministry Of Manpower (MOM)
  • Grants / Funding
  • Enterprise Singapore – SMEPortal


Please refer to GUIDES for Type of Firms & Entities for more details, information or  CONTACT us if you wish to know about these or many other services.