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
How to Apply
1. Approach any Participating Financial Institution for EFS-VD (DBS, HSBC, OCBC, UOB) 2. FI conducts credit assessment 3. Submit application via ESIMS portal (https://esgincentives.enterprisesg.gov.sg/) 4. EnterpriseSG processes the risk-share component 5. Loan disbursed by FI upon approval
Claims and Disbursement
EFS is a loan programme - borrowers repay 100% of the loan to the FI per agreed schedule. In event of default, after FI exhausts standard recovery procedures, FI may claim against EnterpriseSG for unrecovered amount in proportion to risk-share.
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.
Related Grants
Enterprise Financing Scheme (EFS) - SME Working Capital Loan
Enterprise Singapore
Up to S$500,000 per borrower (S$5 million borrower group limit)
The EFS-WCL helps SMEs finance their operational cashflow needs for daily business operations. It is one of the most accessible EFS loan types, designed to support the day-to-day financial requirements of small and medium enterprises, including payroll, inventory purchases, and other recurring operational expenses. EnterpriseSG shares 50% (or 70% for young enterprises) of the loan default risk with Participating Financial Institutions, encouraging them to extend financing to enterprises that may otherwise face difficulties obtaining commercial loans.
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Up to S$50 million per borrower or borrower group
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Startup SG Equity
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General-tech: Up to $2M (7:3 for first $250K, then 1:1). Deep-tech: Up to $8M (7:3 for first $500K, then 1:1)
A government co-investment scheme that stimulates private sector investments into innovative, Singapore-based technology startups with intellectual property and global market potential. The government co-invests with independent, qualified third-party investors on the same terms, with enhanced support for deep-tech startups. Administered through SPRING SEEDS Capital (SSC) and appointed investing partners.
Startup SG Equity
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Startup SG Equity (SSGE) is a co-investment programme where the Singapore Government co-invests alongside qualified third-party investors (venture capital firms, angel investors, corporates) into Singapore-based technology startups. The programme reduces risk for private investors by providing matching government capital and is administered through appointed fund managers, with SEEDS Capital being one of the primary fund managers. This is equity financing, not a grant — the government takes an equity stake alongside private investors. The programme covers startups at early and growth stages with different investment caps and co-investment ratios depending on whether the startup is classified as general tech or deep tech. Deep tech startups benefit from more favorable initial co-investment ratios due to their longer commercialization periods and higher barriers to entry.