What the Enterprise Financing Scheme is

The Enterprise Financing Scheme (EFS) is a Singapore government initiative, administered by Enterprise Singapore, that shares default risk with banks and finance companies to make it easier for SMEs to access financing. Rather than lending directly, Enterprise Singapore backs a portion of the loan — reducing the risk to the lender, and in turn making approval more realistic for businesses that might not otherwise qualify on their own.

Risk sharing sits between Enterprise Singapore and the lender. It does not reduce what you owe: the borrower remains responsible for repaying 100% of the loan.

The main loan types under EFS

• SME Working Capital Loan (EFS-WCL) — for day-to-day operational cash flow, typically repayable over up to 5 years.
• Trade Loan — for import, export, and trade-related working capital needs, generally shorter-tenure (around 1 year).
• Fixed Assets Loan — for purchasing equipment, machinery, or business premises, over a longer tenure of up to around 15 years.
• Project Loan — for overseas or domestic infrastructure and project work.
• Venture Debt Loan and Mergers & Acquisitions Loan — for growth-stage financing needs beyond day-to-day operations.

Who typically qualifies

Eligibility is generally based on being a business registered and operating in Singapore, with at least 30% local shareholding, and meeting SME thresholds — broadly, group annual revenue not exceeding S$100 million or group employment not exceeding 200 employees.

Current risk-share figures

The ordinary Government risk share is 50%, rising to 70% for qualifying young enterprises.

From 1 September 2026 to 31 March 2027, Enterprise Singapore has published a time-bound enhancement raising the risk share to 70% for all enterprises on the SME Working Capital Loan and the Project Loan. The enhancement was announced by the Ministry of Finance on 29 July 2026. Because qualifying young enterprises already receive 70%, the change lifts everyone else to that level for the window rather than benefiting every applicant equally.

Figures checked against Enterprise Singapore on 3 August 2026. Scheme terms are reviewed periodically — confirm the current position before applying.

How to apply

You don't apply to Enterprise Singapore directly — EFS loans are disbursed through participating financial institutions, which currently include most major Singapore banks and several finance companies. Each institution runs its own credit assessment on top of the scheme's eligibility criteria, so approval isn't automatic just because a business qualifies for EFS in principle.

Fundwise helps SMEs figure out which EFS loan type fits, and which participating institution is likely to be the best match — we don't lend directly, and we're not affiliated with any single bank.

Since scheme terms change periodically, always confirm the latest quantum and eligibility criteria before applying. Learn more about EFS loans or get in touch to see if your business qualifies.