Enterprise Financing Scheme (EFS)

The Enterprise Financing Scheme (EFS) is a government initiative by Enterprise Singapore that helps eligible Singapore businesses access financing through participating financial institutions.

Under the scheme, Enterprise Singapore shares part of the loan default risk with participating lenders, helping to support financing for different business needs.

FS Capital Pte. Ltd., a related entity of Funding Societies, is a Participating Financial Institution for two EFS schemes:

• EFS SME Working Capital Loan: Supports day-to-day operational cash flow needs.
• EFS Trade Loan: Supports eligible domestic and overseas trade financing requirements.

Businesses can approach FS Capital directly to enquire about available EFS financing options.

Generally, businesses must be registered and operating in Singapore, have at least 30% qualifying local shareholding and have a group annual sales turnover not exceeding S$500 million.

Additional requirements apply to specific EFS schemes. For example, EFS SME Working Capital Loan applicants group annual sales turnover must not exceed S$100 million OR group employment size of not more than 200 employees.

All applications are subject to scheme eligibility and the participating financial institution's credit assessment.

The main difference is the government's risk-sharing arrangement.

For an EFS loan, Enterprise Singapore shares part of the loan default risk with the participating financial institution. This can help support financing access for eligible businesses.

Regular business loans do not necessarily include this government risk-sharing arrangement.

Both types of loans must be repaid according to their agreed terms.

From 1 September 2026 to 31 March 2027, Enterprise Singapore's risk-sharing percentage for EFS SME Working Capital Loans is temporarily enhanced to 70%.

This means Enterprise Singapore shares a larger portion of the default risk with participating lenders, which may help eligible SMEs access financing.

However, the arrangement does not guarantee approval or reduced interest rates. Borrowers remain responsible for repaying 100% of their loans.

The temporary 70% enhancement does not apply universally to all EFS schemes.

Under the EFS SME Working Capital Loan scheme, the maximum loan amount is S$500,000 per borrower, with a maximum repayment period of five years.

For EFS Trade Loans, financing is subject to the applicable borrower-group limits and scheme conditions, with a maximum repayment period of one year.

These are scheme limits, not guaranteed offers from FS Capital. The actual financing amount, tenure and other terms depend on your business profile, eligibility and credit assessment.

Interest rates are determined by participating financial institutions based on their assessment of the risks involved.

The applicable interest rates, fees and repayment terms will depend on your business profile and the financing facility offered.

FS Capital will communicate the applicable terms as part of the financing assessment and offer process.

No. An EFS loan is financing that must be repaid according to the agreed loan terms.

Government grants, such as the EDGE Grant, generally help eligible businesses offset the cost of specific business improvement projects.

EFS financing may be more relevant for businesses looking to manage cash flow or finance eligible trade activities, while grants are designed to support qualifying projects and initiatives.

You can approach FS Capital directly through Funding Societies to enquire about financing under the applicable EFS schemes.

Submit your business and financing details, and our team will review your requirements and assess your application.

Financing approval remains subject to applicable scheme eligibility and FS Capital's credit assessment.