Overview

SME Working Capital
 

Finance operational cashflow needs.

Maximum Loan Quantum
 S$1 million / borrower

Note: Overall loan exposure limit of S$50 million per borrower group across all areas.
Maximum Repayment Period
 5 years
Risk-Share
 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 the PFIs’ assessments of risks involved.

 

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. 

Enterprises under the Enhanced EFS-WCL may apply for a deferral of principal repayment to help them reduce their monthly cash outflow, subject to assessment by the PFIs.
Eligibility
 
  1. Be a business entity1 that is registered and physically present in Singapore
  2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
  3. Maximum Borrower Group2 revenue cap of S$500 million for all enterprises
  4. For "SME Working Capital", the SME definition refers to Group revenue of up to S$100 million or maximum employment of 200 employees
1 ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the enhanced SME Working Capital Loan. Approval of the loan is subject to the PFI's assessment.
2 Borrower Group consists of the following:
a. Borrower; and
b. Corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down. (Annual sales turnover and employment size is computed on a group basis.)
FAQ
 

Click here for frequently asked questions on EFS SME Working Capital Loan. 

Click here for frequently asked questions on EFS.