Overview

Finance the growth of innovative enterprises using Venture Debt and Warrants.

This form of financing is typically suited for high growth start-ups that do not have significant assets to be used as collateral under traditional bank lending. The warrants, or rights to purchase equity, is to compensate for the higher risk of loan default.

Enterprises may use the Loan to:

Grow and expand existing capacity
Diversify into other product lines
Augment working capital needs
Undertake new projects
Undergo merger and acquisitions

Maximum Loan Quantum	S$5 million / borrower group Note: Overall loan exposure limit of S$50 million per borrower group across all areas.
Maximum Repayment Period	5 years
Risk-Share	Risk share is at 50%. Young companies¹ may receive a risk share of 70%. The borrower is responsible for repayment of 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 risk-share.
Interest Rate	Subject to Participating Financial Institutions’ assessments of risks involved.

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

Be registered and operating in Singapore
Have a minimum of 30% local shareholding
Maximum Borrower Group² revenue cap of S$500 million for all enterprises

² Borrower Group consists of the borrower as well as 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 are computed on a group basis)..

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