Enterprise Financing Scheme (EFS)
Published by Enterprise Singapore
on 03 Jun 2015
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, existing ESG’s financing schemes will be 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.
ESG will share the loan default risk in the event of enterprise insolvency with the Participating Financial Institutions. The EFS will cover the following six areas to address enterprises’ financing needs:
- SME Working Capital – For day to day business operations
- SME Fixed Assets – Buy business properties, commercial vehicles, equipment, vessels, land
- Venture Debt – Debt financing with warrants for high growth enterprises in between equity financing rounds
- Trade – To finance domestic and overseas markets
- Project Loan– To secure and execute overseas projects or orders
- Mergers & Acquisitions – To merge with or acquire other enterprises
A higher risk share will be considered for the following:
a) Young companies within 5 years from inception; and
b) Selected markets with Standard & Poor’s (S&P) ratings of below BBB- or are not rated.
For more information on EFS, please visit www.enterprisesg.gov.sg.
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.
Here are the steps you can take when applying for PSG:
- Visit EFS webpage to access for information on the 6 key areas of EFS, and identify relevant solutions that best suit your business needs.
- Download and save the Enterprise Finance Scheme application form here.
- Open the application form in Adobe Reader (free download).
For details and instructions on how to compile all required supporting documents for submission, refer to the application form guide here.