Overview

Note:

The Enterprise Financing Scheme – Project Loan (EFS – PL) will be enhanced from 1 January 2021 until 31 March 2022 to support domestic projects for construction1 companies.


Project Loan
 
Finance the fulfillment of secured overseas projects. The supportable loan types include:
  • Working Capital Loan
  • Factory/ Building/ Land (includes Purchase/ Renovation/ Construction)
  • Equipment/ Machineries/ Vessels/ Other Fixed Assets/ Machinery Hire Purchase
  • Guarantees
Maximum Loan Quantum
 S$50 million / borrower for overseas projects
S$30 million / borrower for domestic projects

Note: Borrowers are subject to an overall borrower group2 limit of S$50 million for overseas project and S$30 million for domestic project for EFS-PL. In addition, there is an overall loan exposure limit of S$50 million per borrower group across all facilities.
Maximum Repayment Period
 Up to 15 years for Fixed Asset loans
Up to 5 years for Working Capital Loan and Guarantee

There must be an underlying contract, secured sales order and/or projects tied to the fixed asset, working capital loan and guarantee.
Risk-Share
 Risk share is at 50%. Young companies3 or companies operating in a challenged market4 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 Companies registered with SSIC codes beginning with 41, 42 or 43 may apply for the enhanced EFS-PL to support domestic projects through the PFIs.
2 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% down shareholdings and its subsidiaries at all levels
3 Young companies refer to firms formed within the past 5 years with at least 1 employee, and more than 50% equity owned by individuals.
4 Challenged markets refer to countries with S&P rating BB+ and below, including non-rated countries.
Eligibility
 
  1. Be a business entity5 that is registered and physically present in Singapore, and
  2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and
  3. Have Group Annual Sales Turnover of not more than S$500 million
  4. Companies registered with SSIC codes beginning with 41,42 or 43 may apply for the enhanced EFS-PL to support domestic projects
For the loan to be supported under EFS-PL, the additional criteria are required:
  1. Fixed assets acquired are to discharge a contractual obligation under the project.
  2. It must be for secured sales order and/or projects. It cannot be used solely for general working capital/operating expenses.
5 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 Project Loan.

Click here for frequently asked questions on EFS.