Overview

Note:

As announced at Budget 2022, the Enterprise Financing Scheme – Merger & Acquisition (EFS – M&A) will be enhanced for 4 years, from 1 April 2022 to 31 March 2026, to include domestic M&A activities.

This supports enterprises to scale and expand through M&A – including venturing into complementary businesses and emerging sectors.

 

Merger & Acquisitions (M&A)
 

Finance the acquisition of local or overseas target enterprises.

Maximum Loan Quantum
 S$50 million / borrower or borrower group1

Note: Borrowers are subject to an overall borrower group limit of S$50 million for EFS – M&A. In addition, there is an overall loan exposure limit of S$50 million per borrower group across all facilities.
Maximum Repayment Period
 5 years
ESG Risk-Share
 Risk share is at 50%. Young enterprises2 or enterprises operating in a challenged market3 may receive a risk share of 70%.


The borrower is responsible to repay 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 the risk-share.
Interest Rate
 Subject to PFIs’ assessment of risks involved.

 

1 Borrower Group consists of the following:
a. Borrower; and
b. Corporate shareholders holding more than 50% at all levels up; and.
c. Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
d. Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all level down
2 Young enterprises refer to firms formed within the past 5 years with at least 1 employee, and more than 50% equity owned by individuals.
3 Challenged markets refer to countries with S&P rating BB+ and below, including non-rated countries.

Eligibility
 

SME should meet the following critiera:

  1. Is a business entity4, registered and physically present in Singapore
  2. Has at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
  3. Has Group Annual Sales Turnover of not more than S$500 million
4 ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the scheme. Approval of the loan is subject to the PFI’s assessment.
FAQ
 

Click here for frequently asked questions on EFS.