Singapore has implemented several schemes to support companies in the area of financing. Enterprise Singapore typically shares the credit risks with the Participating Financial Institutions (PFIs). This results in loans with lower interest rates and greater access to the loan markets for these companies. Eligible companies can approach any of the eligible PFIs to apply for the financing schemes.
These schemes include:
- SME Equipment and Factory Loan
- SME Micro Loan
- SME Venture Loan
- SME Working Capital Loan
We provide the details of these schemes below:
SME Equipment and Factory Loan
Singapore SMEs have access to SME Equipment and Factory Loan of up to S$15 million. These loans could be used for the purchase or upgrade of equipment. Alternatively, the loan could be used for the purchase of JTC Corporation or Housing & Development Board factory and business premises. The tenor of the loan could be up to 8 or 10 years for equipment loans and factory loans respectively.
Enterprise Singapore shares the risk of loan defaults with PFIs the event of company insolvency.
Eligibility:
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group annual sales of up to S$100m or employment size of not more than 200
SME Micro Loan
SME Micro Loan is targeted at small companies with a loan of up to S$100,000. This is to support these companies in managing daily operations and cash flow. The scope of the loan is for automation and upgrading of equipment and factory facilities, as well as funding of daily operations.
Enterprise Singapore shares the risk of loan defaults with PFIs in the event of company insolvency.
The scheme is slated to be included in the new Enterprise Financing Scheme in October 2019.
Eligibility:
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Annual sales of up to S$1 million or employment size of not more than 10
SME Venture Loan
SME Venture Loan is targeted at fast-growing and innovative companies with venture debt financing of up to S$5 million. The venture debt could be in the form of a convertible loan where the loan is combined with warrant rights to purchase a certain equity stake in the company. In certain cases, some collateral could also be pledged in return for the loan.
Enterprise Singapore shares 50% of the risk of loan defaults with PFIs in the event of company insolvency. This helps to reduce the cost of financing or improve the financing terms in the venture debt.
The scope of loan could be working capital, asset financing, project financing or Mergers & Acquisitions.
Eligibility:
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group annual sales of up to S$100 million or group employment size of not more than 200
SME Working Capital Loan
For certain industries, companies often faced tight working capital needs such as funding the upfront purchase of inventory. To alleviate such tight liquidity conditions, SME Working Capital Loan offers companies access to unsecured working capital financing of up to S$300,000. It serves to support companies with larger working capital and cash flow needs.
Enterprise Singapore partners PFIs and co-shares 50% of loan default risks in the event of company insolvency.
The scheme is launched in June 2016 and is slated to be included in the new Enterprise Financing Scheme in October 2019.
Eligibility:
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group annual sales of up to S$100 million or employment size of not more than 200
