Enterprise Financing Scheme (EFS) - Venture Debt
The EFS-VD aims to finance the growth of innovative enterprises using Venture Debt and Warrants. It supports high-growth enterprises that do not have significant assets to be used as collateral under traditional bank lending. Under the enhanced programme, the venture debt facility can be backed by warrants or redeemable convertible preference shares. Use cases include growing and expanding existing capacity, diversifying into other product lines, augmenting working capital needs, undertaking new projects, and undergoing mergers and acquisitions.
Eligibility Criteria
- 01
Business entity registered and operating in Singapore
- 02
At least 30% local equity held by Singaporeans/PRs
- 03
Group Annual Sales Turnover not exceeding S$500 million
- 04
Innovative enterprises suitable for venture debt financing
- 05
Overall exposure limit S$50 million per borrower group
Frequently Asked Questions
Venture debt finances growth of innovative enterprises without significant assets for collateral, backed by warrants or redeemable convertible preference shares.
Growing existing capacity, diversifying into other product lines, augmenting working capital, undertaking new projects, and mergers & acquisitions.
Up to S$8 million per borrower with a borrower group limit of S$20 million for EFS-VD.
Maximum repayment period is 5 years.
DBS Bank, HSBC, OCBC Bank, and United Overseas Bank are the participating financial institutions.