How Much Funding Can You Get?
- Maximum Loan Quantum: Up to S$8 million per borrower
- Borrower Group Limits:
- Overall borrower group limit of S$20 million for EFS-VD
- Overall loan exposure limit of S$50 million per borrower group across all facilities
- Maximum Repayment Period: 5 years
- EnterpriseSG Risk-share:
- 50% risk-share for eligible enterprises
- 70% risk-share for young enterprises (firms formed within the past 5 years with at least 1 employee and more than 50% equity owned by individuals)
- Interest Rate: Subject to participating Financial Institutions’ assessment of risks involved
Note: Borrowers are responsible to repay 100% of the loan amount. When defaults occur, the participating Financial Institutions (FIs) 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 the risk-share.
What Is This Grant About?
The Enterprise Financing Scheme – Venture Debt (EFS-VD) aims to finance the growth of innovative enterprises using Venture Debt and Warrants. This programme supports high-growth enterprises that do not have significant assets to be used as collateral under traditional bank lending.
Enhanced Programme Features
As announced at Committee of Supply 2023, the EFS-Venture Debt Programme has been enhanced to extend support to venture debt loans backed by Redeemable Convertible Preference Shares (RCPS). This enhancement allows more flexible repayment plans for early-stage and deep tech start-ups with irregular cash flow.
How Venture Debt Works
Under the enhanced programme, the venture debt facility can be backed by:
- Warrants: Traditional venture debt structure with warrants
- Redeemable Convertible Preference Shares (RCPS): More flexible structure for early-stage and deep tech start-ups
Use of Funds
Enterprises may use the loan to:
- Grow and expand existing capacity
- Diversify into other product lines
- Augment working capital needs
- Undertake new projects
- Undergo mergers and acquisitions
Who Can Apply?
To be eligible for EFS-VD, your company must meet all of the following criteria:
- Business entity registered and operating in Singapore
- ACRA-registered Sole Proprietorships, Partnerships, Limited Liability Partnerships and Companies are eligible to apply
- Approvals of loans are subject to the participating Financial Institution’s assessment
- Company has at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
- Company has a Group Annual Sales Turnover not exceeding S$500 million
Borrower Group Definition
A Borrower Group consists of the following:
- Borrower
- Corporate shareholders holding more than 50% at all levels up
- Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
- Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all levels down
Young Enterprises
Young enterprises refer to firms formed within the past 5 years with at least 1 employee and more than 50% equity owned by individuals. These enterprises may receive a risk-share of 70% instead of the standard 50%.
How To Apply?
Application Process
- Check eligibility: Verify your company meets all eligibility criteria (registered in Singapore, 30% local equity, turnover ≤ S$500M)
- Choose a participating Financial Institution: Select from DBS, HSBC, OCBC, or UOB
- Prepare required documents:
- Company registration documents
- Financial statements
- Business plan or project proposal
- Ownership structure documents (to verify 30% local equity)
- Any other documents required by the participating FI
- Apply through participating FI: Contact the bank directly to initiate the loan application process
- Subject to banks’ credit approval
- Each FI will have its own application process and requirements
- Alternative: Apply via ESIMS: You can also apply through the Enterprise Singapore Incentive Management System (ESIMS)
- Access the ESIMS portal
- Download and follow the ESIMS Application guide
- Wait for assessment: The participating FI will assess your application based on credit risk and other factors
- Receive approval: If approved, the FI will provide loan terms including interest rate, repayment schedule, and security requirements
Important Notes
- Loan approvals are subject to participating Financial Institutions’ credit assessment
- Each FI may have different requirements and processes
- Interest rates are determined by the participating FI based on risk assessment
- You may need to provide security in the form of warrants or RCPS
Where To Apply?
Participating Financial Institutions
You can apply for EFS-VD through any of the following participating Financial Institutions:
| Financial Institution | Contact Details |
|---|---|
| DBS Bank Ltd | 1800 222 2200 |
| The Hongkong and Shanghai Banking Corporation (HSBC) | 1800 216 9008 / 6216 9008 |
| Oversea-Chinese Banking Corporation Ltd (OCBC Bank) | 6538 1111 |
| United Overseas Bank Ltd (UOB) | 1800 2266 121 |
Enterprise Singapore Incentive Management System (ESIMS)
- ESIMS Portal: Access the ESIMS portal to apply online
- Application Guide: Download and save the ESIMS Application guide for detailed instructions
Worked Example
Scenario: Your Series A startup needs growth capital without further equity dilution.
| Item | Details |
|---|---|
| Venture debt facility | S$2,000,000 |
| Government risk-share (up to 70%) | S$1,400,000 |
| Lender’s risk exposure | S$600,000 |
| Typical interest rate | 8-12% per annum |
| Loan tenure | Up to 5 years |
| Warrants/equity kicker | Negotiable with lender |
Note: Government risk-sharing makes lenders more willing to extend debt to startups. The startup repays the full loan — the risk-share only applies if the startup defaults.
Frequently Asked Questions
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How much funding can I get? Up to S$8 million per borrower, subject to an overall borrower group limit of S$20 million for EFS-VD and an overall loan exposure limit of S$50 million per borrower group across all facilities.
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What’s the repayment period? The maximum repayment period is 5 years; the actual repayment schedule is determined by the participating Financial Institution based on your needs and risk assessment.
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What is the interest rate? Interest rates are determined by participating Financial Institutions based on their assessment of your creditworthiness and risks involved.
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What does risk-share mean? Enterprise Singapore shares loan default risk with the participating Financial Institution (50%, or 70% for eligible young enterprises), but borrowers remain responsible for repaying 100% of the loan amount; risk-share applies only after the FI follows its standard commercial recovery procedures when defaults occur.
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Who qualifies as a young enterprise? Firms formed within the past 5 years with at least 1 employee and more than 50% equity owned by individuals may qualify for a 70% risk-share instead of the standard 50%.
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Can I apply if my company exceeds S$500 million turnover? No—companies with Group Annual Sales Turnover exceeding S$500 million are not eligible.
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What is a borrower group? A Borrower Group includes the borrower, corporate shareholders holding more than 50% at all levels up, and subsidiaries where the applicant or its ultimate parent company holds more than 50% shareholdings at all levels down; this determines which loan limits apply.
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What security is required? The venture debt facility can be backed by warrants or Redeemable Convertible Preference Shares (RCPS); specific security requirements are set by the participating Financial Institution.
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Can I apply through multiple banks? Yes, but borrower group limits apply across all facilities (overall borrower group limit S$20 million for EFS-VD; overall loan exposure limit S$50 million per borrower group across all facilities).
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How long does the approval process take? Approval timelines vary by participating Financial Institution; contact the FI directly for estimated processing times.
Related Information
- Grant Pitfalls Guide - Common pitfalls to avoid when applying for EFS-VD
- How to Choose? EFS vs EFS-VD - Use this matrix to choose between EFS Venture Debt and other financing options
- Enterprise Financing Scheme - Learn about the main EFS scheme
- Singapore Grants Glossary - Quick definitions for terms like PFI, SME, and other grant terminology
- Startup SG Founder - Government-backed startup grants for first-time founders
- Startup SG Tech - Proof-of-concept funding for startups with novel technology
- EFS Loan Types Decision Matrix - Compare all EFS loan categories to find the right fit
- Financing & Capital Grants Singapore - Overview of all financing and capital grants available
References
- Enterprise Financing Scheme – Venture Debt - Enterprise Singapore - Official EFS-VD page with current funding information and eligibility details
- FAQ: Enterprise Financing Scheme - Enterprise Singapore - Frequently asked questions about Enterprise Financing Scheme
- Enterprise Singapore Incentive Management System (ESIMS) - Apply for EFS-VD through ESIMS portal
- Enterprise Infoline - Contact Enterprise Singapore for technical assistance