Overview

Note:

As announced at Solidarity Budget 2020, the Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) is enhanced to help SMEs with their working capital needs. The maximum loan quantum was raised from $300,000 to $1 million. Risk-share was also increased to 90% (from 50% and 70% for young companies) for new applications initiated from 8 April 2020 until 31 March 2021.

From 1 April 2021, the EFS-WCL will return to its original parameters, with the maximum loan quantum of S$300,000 and risk share of 50% and 70% for young companies.

Finance operational cashflow needs.

Maximum Loan Quantum	To 31 March 2021: S$1 million / borrower From 1 April 2021: S$300,000 / borrower Note: Overall loan exposure limit of S$50 million per borrower group across all facilities.
Maximum Repayment Period	5 years
Risk-Share	To 31 March 2021: Risk share is at 90% From 1 April 2021: Risk share is at 50%. Young companies¹ 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.

¹Young companies refer to firms formed within the past 5 years with at least 1 employee, and more than 50% equity owned by individuals.