Enterprise Financing Scheme (EFS) Singapore
Government-backed loans up to S$15 million with up to 80% risk-sharing for Singapore SMEs
What is the Enterprise Financing Scheme?
The Enterprise Financing Scheme (EFS) is Singapore's flagship government loan program, designed to help SMEs access affordable financing through risk-sharing arrangements with participating banks. Managed by Enterprise Singapore, EFS provides government backing of 50-80% depending on the loan category and company profile.
Government Risk Sharing
Up to 80% government backing reduces bank risk
Competitive Interest Rates
Lower rates from 4.5% due to government support
Higher Approval Rates
Government backing increases loan approval chances
EFS Loan Categories
EFS-WCL (Working Capital Loan)
Short-term financing for working capital needs
Eligible Uses:
- Inventory financing
- Accounts receivable financing
- Seasonal cash flow management
EFS-SME (SME Loan)
General business financing for expansion and growth
Eligible Uses:
- Business expansion
- Equipment purchase
- Property acquisition
- Debt consolidation
EFS-Trade (Trade Loan)
Trade financing for import/export businesses
Eligible Uses:
- Import financing
- Export financing
- Trade working capital
- Supply chain financing
EFS-Green (Green Finance)
Financing for environmentally sustainable projects
Eligible Uses:
- Solar panel installation
- Energy-efficient equipment
- Green building upgrades
- Waste reduction systems
Current EFS Interest Rates (2025)
EFS interest rates are competitive due to government risk-sharing. Rates vary by scheme, loan amount, and business profile.
| Scheme | Interest Rate Range | Rate Factors |
|---|---|---|
| EFS-WCL | 5.0% - 8.5% | Business profile, loan amount, security provided |
| EFS-SME | 5.5% - 10.0% | Company age, financial strength, collateral |
| EFS-Trade | 5.0% - 9.0% | Trade track record, customer profile, transaction type |
| EFS-Green | 4.5% - 8.0% | Environmental impact, project viability, green certification |
EFS Eligibility Requirements
Local Shareholding
Minimum 30% local shareholding by Singapore citizens or PRs
Business Registration
Singapore-incorporated company with valid UEN from ACRA
Revenue Criteria
Annual sales turnover not exceeding S$500 million
Operating History
Established business with operating track record (varies by scheme)
Financial Standing
Good credit history and financial health
Participating Banks
DBS Bank
All EFS categories, strong in working capital
Key Strengths:
- Largest EFS lender
- Digital application process
- SME expertise
OCBC Bank
EFS-Trade and EFS-SME focus
Key Strengths:
- Competitive rates
- Relationship banking
- Trade finance expertise
UOB
Manufacturing and F&B sectors
Key Strengths:
- Regional network
- Industry specialization
- Fast approval
CIMB Bank
SME working capital and trade finance
Key Strengths:
- Flexible terms
- Personal service
- Competitive pricing
EFS Application Process
Pre-Application Assessment
1-2 daysEvaluate eligibility and determine best EFS category
- Check local shareholding requirements
- Verify annual revenue eligibility
- Assess business track record
- Determine optimal loan amount and structure
Document Preparation
3-5 daysGather required documentation for application
- Audited financial statements (2-3 years)
- ACRA business profile and shareholding details
- Cash flow projections and business plan
- Loan purpose documentation and quotations
Bank Application Submission
1 daySubmit application through participating bank
- Choose preferred participating bank
- Submit complete application package
- Provide additional information if requested
- Attend bank interview if required
Credit Assessment & Approval
2-4 weeksBank evaluates application with government backing
- Bank conducts credit assessment
- Enterprise Singapore reviews application
- Risk-sharing arrangement confirmed
- Loan terms and conditions finalized
Ready to Apply for EFS Financing?
Get connected with EFS participating banks and secure government-backed financing for your business