Enterprise Financing Scheme (EFS) Singapore 2026: All 8 Loan Types, Eligibility & How to Apply

Access to financing is one of the most persistent challenges for Singapore SMEs, whether managing working capital gaps, funding equipment purchases, expanding overseas, or closing a major contract. The Enterprise Financing Scheme (EFS), administered by Enterprise Singapore, addresses this challenge head-on by providing government-backed risk-sharing on commercial loans, making it easier and cheaper for qualifying businesses to borrow.

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With Budget 2026 enhancements taking effect from 1 April 2026, EFS has been refreshed: the separate loan caps on Trade and SME Fixed Assets loans have been replaced by a single S$50 million limit per borrower group, domestic M&A support is now permanent and EFS-Green runs to 31 March 2031. A temporary 70% risk-share also applies to Working Capital and Project Loans from 1 September 2026 to 31 March 2027. This guide covers all eight EFS loan types, eligibility requirements, and how to apply.

What Is the Enterprise Financing Scheme?

The EFS is a government loan assistance scheme where Enterprise Singapore shares the default risk with participating financial institutions (PFIs), typically banks and finance companies. This risk-sharing reduces the PFI’s exposure, allowing them to lend to SMEs at competitive rates and with less stringent collateral requirements than they might otherwise impose.

The EFS does not provide direct grants. Businesses borrow from approved PFIs (such as DBS, OCBC, UOB, Standard Chartered, and others) under EFS terms, and remain responsible for repaying 100% of the loan. Enterprise Singapore provides the risk-share backstop to the lender.

EFS Eligibility Requirements

To qualify for any EFS loan, your business must:

• Be registered and operating in Singapore (ACRA-registered Sole Proprietorships, Partnerships, LLPs, and Companies all qualify)
• Have at least 30% local shareholding held directly or indirectly by Singapore Citizens or PRs, based on ultimate individual ownership
• Have a Group Annual Sales Turnover not exceeding S$500 million

For SME Working Capital and SME Fixed Asset loans specifically, the SME definition also requires either:

• Group revenue of up to S$100 million; or
• Maximum employment of 200 employees

Since 1 April 2026, total EFS borrowing is subject to a combined maximum of S$50 million per borrower group across all EFS facilities (including EFS-Green). A higher risk-share of 70% may be considered for young enterprises (formed within the past five years, with at least one employee and more than 50% of equity held by individuals) and, for some facilities, for projects in markets rated BB+ or below.

The Eight EFS Loan Types

1. EFS: SME Working Capital Loan

The most commonly used EFS product, the Working Capital Loan addresses short-term cash flow needs: payroll, supplier payments, rent, and day-to-day operating costs.

• Loan quantum: Up to S$500,000 per borrower (S$5 million per borrower group for this facility)
• Loan tenor: Up to 5 years
• Government risk-share: 50% as standard, or 70% for young enterprises. From 1 September 2026 to 31 March 2027, the risk-share is 70% for all eligible enterprises
• Interest rate: Set by each PFI based on its own credit assessment

2. EFS: SME Fixed Assets Loan

For businesses investing in productive assets, such as machinery, equipment and business premises, the Fixed Assets Loan provides longer-tenure financing.

• Loan quantum: No separate facility cap since 1 April 2026 (the former S$30 million cap was removed); subject to the S$50 million limit per borrower group across all EFS facilities
• Loan tenor: Up to 15 years
• Government risk-share: 50% (70% for young enterprises or challenged markets)
• Eligible assets: Equipment and machines for automation and upgrading (new or resale), and the purchase or construction of government-built or commercial factories and business premises, in Singapore or overseas

3. EFS: Trade Loan

Designed to support import/export businesses and companies with overseas supply chains, the Trade Loan provides short-term financing for trade-related transactions, both domestic and overseas.

• Loan quantum: No separate facility cap since 1 April 2026 (the former S$10 million per borrower and S$20 million per borrower group caps were removed); subject to the S$50 million limit per borrower group across all EFS facilities
• Loan tenor: Up to 1 year (bank guarantees up to 2 years)
• Government risk-share: 50% (70% for young enterprises or challenged markets)
• Eligible uses: Inventory or stock financing, structured pre-delivery working capital, factoring (with recourse), bill or invoice and receivables discounting, overseas working capital loans, and bank guarantees

4. EFS: Project Loan

The Project Loan supports companies that have secured contracts but need upfront financing to execute, common in construction, engineering and infrastructure work.

• Loan quantum: Subject to the S$50 million limit per borrower group across all EFS facilities
• Loan tenor: Up to 15 years
• Government risk-share: 50% as standard (70% for young enterprises or challenged markets). From 1 September 2026 to 31 March 2027, the risk-share is 70% for all eligible enterprises
• Eligibility: Must have a secured overseas project. From 1 September 2026 to 31 March 2027, secured domestic construction projects also qualify, for companies registered under BCA’s Contractors Registration System (CRS) or Builders Licensing System (BLS)

5. EFS: Venture Debt Loan

Targeted at high-growth companies that cannot access traditional bank financing due to limited collateral or profitability history.

• Loan quantum: Up to S$8 million per borrower, with an overall S$20 million limit per borrower group for this facility
• Loan tenor: Up to 5 years
• Government risk-share: 50% (70% for young enterprises)
• Eligibility: The standard EFS criteria apply, and approval depends on the PFI’s assessment of the company’s growth prospects and funding position

6. EFS: Mergers & Acquisitions (M&A) Loan

For businesses looking to expand inorganically through acquisitions, the M&A Loan finances the purchase of target enterprises or their assets.

• Loan quantum: Subject to the S$50 million limit per borrower group across all EFS facilities
• Loan tenor: Up to 5 years
• Government risk-share: 50% (70% for young enterprises or challenged markets)
• Eligible acquisitions: Local or overseas target enterprises and/or assets. Support for domestic M&A, previously temporary, was made permanent from 1 April 2026

7. EFS-Green

Introduced to support Singapore’s sustainability agenda, EFS-Green finances the development or adoption of green technologies and solutions. It is offered across several loan types, with a higher risk-share than standard EFS.

• Loan types and quantum: Developmental Capital up to S$3 million per borrower; Venture Debt up to S$8 million per borrower; Fixed Assets, Trade, Project and M&A loans subject to the S$50 million limit per borrower group across EFS and EFS-Green combined
• Loan tenor: Up to 5 years for Developmental Capital, Venture Debt and M&A; up to 15 years for Fixed Assets; up to 1 year for Trade; up to 20 years for Project Loans
• Government risk-share: 70%
• Eligible uses: Green product and technology development, consultation and certification fees, equipment and premises for green initiatives, trade in green products, and overseas and domestic green projects
• Validity: Extended for five years under Budget 2026; applications must be approved by a PFI by 31 March 2031

8. EFS: Foreign-based Financial Institutions and Multilateral Development Banks (FFI/MDB) Loans

This facility helps Singapore enterprises venturing overseas to borrow from participating foreign-based lenders and multilateral development banks, rather than only from Singapore PFIs.

• Loan quantum: Working capital loans up to S$300,000 per borrower; other loans subject to the S$50 million limit per borrower group across all EFS facilities
• Loan tenor: Up to 5 years for working capital and M&A, 15 years for fixed assets and projects, and 1 year for trade
• Government risk-share: 50%
• Validity: Applications must be submitted and approved by a participating lender by 31 March 2028

Budget 2026 Enhancements (From 1 April 2026)

As announced in Budget 2026 under the Business Refresh Package, several EFS enhancements took effect from 1 April 2026:

• The facility-level caps on the Trade Loan (S$10 million per borrower, S$20 million per borrower group) and the SME Fixed Assets Loan (S$30 million) were removed and replaced by a combined maximum of S$50 million per borrower group across all EFS loan facilities
• Support for domestic M&A under the M&A Loan was made permanent
• EFS-Green was extended for five years, to 31 March 2031

Speak to your PFI about how these terms apply to new facilities and to any existing EFS loans your group already holds, since existing borrowing counts towards the S$50 million group limit.

Temporary 70% Risk-Share: 1 September 2026 to 31 March 2027

As part of the second support package announced by the Ministry of Finance on 29 July 2026, the Government raised its risk-share from 50% to 70% for the SME Working Capital Loan and the Project Loan, for all eligible enterprises, from 1 September 2026 to 31 March 2027. Over the same period, the Project Loan also covers secured domestic projects by local construction firms registered with BCA, not only overseas projects.

For what this means for borrowing limits, timing and documentation, see our guide to the EFS 70% risk-share and domestic Project Loans.

How to Apply for an EFS Loan

1. Select the right loan type: Determine which EFS product matches your financing need (working capital, asset purchase, trade, project, etc.)
2. Choose a Participating Financial Institution (PFI): EFS loans are applied for through approved banks and finance companies, including DBS, OCBC, UOB, Standard Chartered, Maybank, Hong Leong Finance, and others. Each PFI sets its own interest rates, documentation requirements, and credit assessment criteria.
3. Prepare your documentation: Typically required: latest two to three years of financial statements, ACRA business profile, bank statements, and details of the specific financing purpose. For Project Loans, the secured contract must be submitted.
4. Submit application to the PFI: Applications are submitted directly to the PFI (not to Enterprise Singapore). The PFI conducts its own credit assessment and applies to Enterprise Singapore for the risk-share if the loan is approved.
5. Drawdown: Upon approval, the PFI disburses the loan and Enterprise Singapore’s risk-share backstop is activated for the PFI’s portion.

EFS vs Government Grants: Key Differences

It is important to distinguish the EFS from government grants such as the EDGE grant, which replaced the EDG, PSG and MRA for new applications from 30 September 2026. Grants provide non-repayable funding co-investment; EFS provides loan assistance that must be repaid with interest. Businesses can, and often should, use both: grants to fund capability development or market expansion costs, and EFS loans to fund working capital or asset purchases alongside the grant project.

For more on combining grants strategically, see our guide on the new EDGE Grant consolidating EDG, PSG and MRA and our directory of Singapore government grants for companies.

Conclusion: EFS Is a Powerful Tool for Singapore SMEs

The Enterprise Financing Scheme is one of the most practical and accessible financing tools available to Singapore SMEs. With government risk-sharing reducing PFIs’ exposure, businesses that might otherwise face difficulties obtaining commercial loans, especially younger companies or those with limited collateral, can access credit on workable terms.

The key is matching the right EFS product to your actual financing need, and then approaching PFIs with a well-prepared application package.

Information checked against official sources on 6 November 2026.

At Raffles Corporate Services, we assist Singapore SMEs in identifying and applying for the right government financing and grant programmes. Contact us to discuss your business’s financing needs.

The Editorial Team, Raffles Corporate Services

For a related funding option, see what SMEs can borrow under the temporary 70% EFS risk-share and domestic project loans.