Check your Enterprise Financing Scheme (EFS) eligibility in under 2 minutes. Note: EFS is a loan scheme, not a grant—but the government shares default risk with banks.
What is EFS?
EFS is NOT a grant. It’s a government-backed financing scheme where EnterpriseSG shares the loan default risk with participating financial institutions. This makes it easier for SMEs to access bank loans.
Eligibility Checklist
Answer these 3 questions:
Eligibility Requirements
- Business registered and operating in SingaporeNot completed
- At least 30% local equity (Singaporean/PR), determined by ultimate individual ownershipNot completed
- Group annual sales turnover ≤ S$500 million (or ≤ S$100M revenue OR ≤ 200 employees for SME Working Capital/Fixed Assets)Not completed
All boxes checked? You’re likely eligible.
7 Types of EFS Loans
| Loan Type | Purpose | Best For |
|---|---|---|
| Green Loan | Finance green growth projects | Sustainability initiatives |
| SME Working Capital | Daily operational cashflow | General business needs |
| SME Fixed Assets | Domestic and overseas fixed assets | Equipment, property |
| Venture Debt | Growth of innovative enterprises | Startups with VC backing |
| Trade Loan | Finance trade needs | Import/export businesses |
| Project Loan | Fulfil secured overseas projects | Overseas expansion |
| M&A Loan | Acquire companies for internationalisation | Strategic acquisitions |
How It Works
Step 1: Identify Your Financing Need
Determine which of the 7 loan types fits your situation.
Step 2: Approach Participating Financial Institutions
EFS loans are provided by banks and financial institutions. Contact them directly:
- DBS
- OCBC
- UOB
- Standard Chartered
- And other participating institutions
Step 3: Apply Through the Bank
The bank handles the application. EnterpriseSG’s involvement is in the risk-sharing arrangement, not direct application processing.
Step 4: Bank Assesses Your Application
The bank evaluates your creditworthiness. EFS doesn’t guarantee approval—it makes banks more willing to lend by sharing default risk.
Higher Risk Share Eligibility
EnterpriseSG may share a higher portion of risk for:
- Young enterprises: Formed within past 5 years, at least 1 employee, >50% equity owned by individuals
- Riskier markets: Countries with S&P rating of BB+ and below, including non-rated countries
EFS vs Grants: Key Differences
| Feature | EFS | Grants (PSG/EDG/MRA) |
|---|---|---|
| Type | Loan | Grant |
| Repayment | Required | Not required |
| Application | Through banks | Through BGP |
| Amount | Based on creditworthiness | Capped per scheme |
| Risk | Shared with government | No risk to company |
| Processing | Bank timeline | 6-12 weeks |
When to Choose EFS
Choose EFS when:
- You need significant capital (>S$100K)
- You have stable cashflow for repayment
- Your project doesn’t fit grant criteria
- You need working capital, not project funding
- Banks are hesitant due to risk profile
Choose grants when:
- You prefer non-repayable funding
- Your project fits grant criteria
- Amount needed is within grant caps
- You can wait for grant processing
Quick Comparison: Loan Types
For Startups
- Venture Debt: Complements equity funding with debt
- Uses warrants or redeemable convertible preference shares
For Overseas Expansion
- Trade Loan: Import/export financing
- Project Loan: Secured overseas projects
- M&A Loan: Acquiring companies abroad
For General Operations
- SME Working Capital: Day-to-day cashflow
- SME Fixed Assets: Equipment and property
For Sustainability
- Green Loan: Environmental projects
Related Guides
-
Grant Pitfalls Guide — common mistakes to avoid
-
Singapore Grants Glossary — key terms and definitions
-
Corppass Setup Guide — how to set up BGP access
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