Key takeaways
- EFS is not a grant. It is a scheme where EnterpriseSG shares part of a lender's risk on business loans. [1]
- You apply yourself, through EnterpriseSG's ESIMS portal, to the participating banks and financiers you choose. Approval is still up to them. [2][41]
- The borrower repays 100% of the loan. If you default, the lender recovers from you first, including from any security. [2]
- There are several loan types, for working capital, trade, fixed assets, projects, venture debt, M&A and green activities. [1]
- Figures below are as at 25 Oct 2026 and can change. Temporary enhancements apply from 1 Sep 2026 to 31 Mar 2027. [2][6]
Key facts
Key terms
- Enterprise Financing Scheme (EFS)
- An Enterprise Singapore scheme that helps Singapore businesses get financing by sharing the risk of default with participating financial institutions. The lender makes the loan, and the borrower repays 100%. [1][2] In the glossary
- Risk share
- Under the EFS, the percentage of a lender's loss that EnterpriseSG covers if a borrower defaults. It does not reduce what the borrower owes. [1][2] In the glossary
- Participating financial institution (PFI)
- A bank or other financier taking part in the Enterprise Financing Scheme. PFIs make EFS loans and decide whether to lend. [1][2] In the glossary
- Young enterprise
- In EnterpriseSG's EFS terms, a firm formed within the past 5 years, with at least 1 employee and more than 50% of equity owned by individuals. [4] In the glossary
- ESIMS
- The Enterprise Singapore Incentive Management System, the portal where a business creates and submits an EFS loan application and chooses which participating lenders to send it to. [2][41] In the glossary
What is the Enterprise Financing Scheme?
The Enterprise Financing Scheme (EFS) is run by Enterprise Singapore (EnterpriseSG). It helps Singapore businesses get financing by sharing the risk of default with participating financial institutions (often called PFIs). [1]
The money does not come from EnterpriseSG. It comes from the bank or financier, which sets the interest rate based on its own assessment of the risk. [2] If a borrower defaults, the lender must first follow its usual recovery steps, including selling any security, before it can claim the unrecovered amount from EnterpriseSG in proportion to the risk share. [2]
Do you still repay the full loan?
Yes. The borrower repays 100% of an EFS loan; EnterpriseSG's risk share covers part of the lender's loss, not your debt. [2] Risk share is the percentage of a lender's loss that EnterpriseSG covers. The standard risk share is 50%. Depending on the loan type, young enterprises, and businesses operating in challenged markets, may receive 70%. [1][2][4]
EnterpriseSG defines young enterprises as firms formed within the past 5 years, with at least 1 employee and more than 50% of equity owned by individuals. Challenged markets are countries with an S&P rating of BB+ and below, including unrated countries. [4]
Risk share does not reduce what you owe. It may make a lender more willing to lend, but it does not guarantee approval. [2] LEGAL REVIEW
Who can apply
As listed by EnterpriseSG for the main EFS loans: [2][4]
- The business must be registered and operating in Singapore. ACRA-registered sole proprietorships, partnerships, LLPs and companies are eligible.
- At least 30% local equity, held directly or indirectly by Singapore citizens and/or PRs, based on ultimate individual ownership.
- Group annual sales turnover of no more than S$500 million.
- For the SME Working Capital and SME Fixed Assets loans, an SME means group revenue of up to S$100 million or up to 200 employees.
Meeting these criteria makes you eligible to be considered. The lender still makes its own credit decision. [2]
The main loan types
As at 25 Oct 2026, EnterpriseSG lists the following. All are subject to an overall limit of S$50 million per borrower group across EFS facilities. [1]
| Loan type | Typical use | Maximum loan | Maximum period |
|---|---|---|---|
| SME Working Capital (EFS-WCL) | Day-to-day cash flow | S$500,000 per borrower (S$5m group limit) [2] | 5 years [2] |
| Trade Loan (EFS-TL) | Inventory, pre-delivery working capital, factoring with recourse, receivables discounting, overseas working capital, bank guarantees | Within the S$50m group cap [3] | 1 year [3] |
| SME Fixed Assets (EFS-FA) | Equipment and machinery; buying or building factories and business premises | Within the S$50m group cap [4] | 15 years [4] |
| Project Loan (EFS-PL) | Secured overseas projects; until 31 Mar 2027 also secured domestic construction projects | Within the S$50m group cap [6] | 15 years [6] |
| Venture Debt (EFS-VD) | Growth financing, alongside warrants or redeemable convertible preference shares | S$8m per borrower (S$20m group limit) [5] | 5 years [5] |
| Mergers & Acquisitions (EFS-M&A) | Buying local or overseas companies or assets | Within the S$50m group cap [7] | 5 years [7] |
| Green (EFS-Green) | Green projects, technology and solution adopters | Varies by sub-type [8] | Up to 20 years for Project Loan [8] |
As announced at Committee of Supply 2026, EFS-M&A was enhanced to support financing for both domestic and overseas M&A, and it finances the acquisition of local or overseas target enterprises or assets. [7] EnterpriseSG's overview page still uses the older internationalisation wording; this guide follows the more specific M&A page. EFS-Green has a 70% risk share and is open until 31 Mar 2031. [8] For how factoring and receivables financing work, see our invoice financing guide.
Temporary enhancements, 1 Sep 2026 to 31 Mar 2027
As announced by MOF on 29 Jul 2026, EnterpriseSG lists two time-limited changes: [2][6]
- Working Capital Loan: a 70% risk share for all enterprises, not only young ones. The other terms are unchanged: up to S$500,000 per borrower, a S$5 million borrower-group limit, the S$50 million overall group limit, up to 5 years, and the borrower repays 100%. [1][2]
- Project Loan: 70% risk share for all, and support extended to secured domestic construction projects, for firms registered with BCA's Contractors Registry or Builders Licensing Scheme. [6]
These apply for a limited period. Check the EnterpriseSG pages for the latest position before you rely on them.
How do you apply for an EFS loan?
You apply for an EFS loan yourself, through EnterpriseSG's ESIMS portal, to the participating lenders you choose. [41]
- Read the EnterpriseSG page for the loan type that matches your need. Each page lists its participating financial institutions and contact numbers. [2] LEGAL REVIEW
- The business applies. A person authorised through Corppass (as "Loan Applicant") creates and submits the EFS loan application in ESIMS and chooses which participating financial institution(s) to send it to. [41]
- The lender then makes its own credit assessment and decides. [2][41]
ESIMS is the Enterprise Singapore Incentive Management System. [2][41] Prepare the usual documents in advance. See preparing to apply.
Common misunderstandings
- "It's a government loan." No. The lender provides the money and sets the rate. [2]
- "The government will repay if I can't." No. You repay 100%, and the lender will pursue recovery first. [2]
- "Going to a participating lender means easier approval." Not necessarily. Approval is up to the lender's own assessment. [2] LEGAL REVIEW
- "The figures never change." They do. The 2026 enhancements show limits and risk shares can be adjusted. [1]
What to check before you agree
- Which EFS loan type is the lender offering, and is it confirmed in writing?
- What is the effective interest rate and every fee? EFS does not set the rate. [2][10]
- Do I need a personal guarantee or security?
- Does the offer rely on a temporary enhancement that ends on 31 Mar 2027? [2]
- Am I within the borrower-group limits if related companies also borrow under EFS? [1]
- Is the lender on the participating list on the EnterpriseSG page for that loan? [2]
Frequently asked questions
What is an EFS loan?
An EFS loan is a business loan made by a participating bank or financier under Enterprise Singapore's Enterprise Financing Scheme, with EnterpriseSG sharing part of the risk of default. The money comes from the lender, which sets the interest rate and decides whether to lend.
Do I only repay part of an EFS loan?
No. The borrower is responsible for repaying 100% of the loan. Risk share is the part of a lender's loss that EnterpriseSG covers if a borrower defaults, after the lender follows its usual recovery steps.
Source: [2]
Can a newly set-up business get an EFS loan?
EnterpriseSG describes young enterprises as firms formed within the past 5 years, with at least 1 employee and more than 50% of equity owned by individuals, and may give them a 70% risk share depending on the loan type. Other eligibility criteria still apply, and the lender makes its own credit decision.
What interest rate does an EFS loan charge?
The EFS does not set one rate. The participating lender sets the interest rate based on its own assessment of the risk, so compare offers using the effective interest rate and all fees.
How do I apply for an EFS loan?
A person authorised through Corppass as "Loan Applicant" creates and submits the application in ESIMS, EnterpriseSG's incentive management system, and chooses which participating financial institutions to send it to. Each lender then makes its own credit assessment.
Disclaimer. This guide gives general information only. It is not financial, legal or tax advice, and it is not a recommendation of any product or provider. Riverell is not a lender and does not arrange loans. Figures and scheme details were checked against the sources listed on 25 Oct 2026 and can change. Always confirm terms directly with the provider, and get independent professional advice if you are unsure. LEGAL REVIEW
Sources
- [1]EnterpriseSG - Enterprise Financing Scheme (overview). https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme (accessed 25 Oct 2026)
- [2]EnterpriseSG - EFS SME Working Capital Loan. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---sme-working-capital (accessed 25 Oct 2026)
- [3]EnterpriseSG - EFS Trade Loan. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---trade-loan (accessed 25 Oct 2026)
- [4]EnterpriseSG - EFS SME Fixed Assets Loan. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---sme-fixed-assets (accessed 25 Oct 2026)
- [5]EnterpriseSG - EFS Venture Debt. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---venture-debt (accessed 25 Oct 2026)
- [6]EnterpriseSG - EFS Project Loan. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---project-loan (accessed 25 Oct 2026)
- [7]EnterpriseSG - EFS Mergers & Acquisitions. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---mergers-and-acquisitions (accessed 25 Oct 2026)
- [8]EnterpriseSG - EFS Green. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---green (accessed 25 Oct 2026)
- [10]MAS MoneySense - Costs of borrowing: flat rate, monthly rest and effective interest rate (last updated 22 Apr 2026). https://www.moneysense.gov.sg/costs-of-borrowing-flat-rate-monthly-rest-and-effective-interest-rate/ (accessed 25 Oct 2026)
- [41]EnterpriseSG - ESIMS Loan Applicant Guide v1.0 (Nov 2022; linked from the EFS-WCL page). https://www.enterprisesg.gov.sg/-/media/esg/files/financial-assistance/loans-insurance/sme-related-loan/esims-applicant-guide-v10.pdf (accessed 25 Oct 2026)