The Enterprise Financing Scheme (EFS) consists of seven government-backed business loans. You apply for them through a Participating Financial Institution (PFI). Until 31 March 2027, the Government will cover 70% of the lender’s loss on Working Capital and Project Loans. Our take: if you have a real working-capital need in the next six months, apply now.
From September 2026, the Government’s risk share goes up to 70% for all borrowers (from 50%) on the SME Working Capital Loan and the Project Loan (MOF). The Trade Loan is not part of this change. You must apply with the PFI by 31 March 2027, and PFIs may define “applied” differently, so ask yours.
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What is the Enterprise Financing Scheme?
EFS is EnterpriseSG’s umbrella scheme for business loans. It has seven sub-schemes, each for a different need. If a borrower becomes insolvent, EnterpriseSG shares the loss with the lender (EnterpriseSG).
Since 1 April 2026, the Trade Loan and Fixed Assets Loan have no loan caps of their own. A borrower group can now borrow up to S$50 million in total across all EFS facilities (EnterpriseSG factsheet).
| EFS loan | What it finances | What to know (as of October 2026) |
|---|---|---|
| SME Working Capital Loan | Day-to-day operating cash flow | Up to S$500,000 (GoBusiness); higher risk share until 31 Mar 2027 |
| Trade Loan | Short-term import, export and guarantee needs | Counts towards the S$50 million group cap; no change to risk share |
| Project Loan | Secured overseas projects, and domestic projects by local construction firms | Higher risk share until 31 Mar 2027 |
| SME Fixed Assets Loan | Equipment, machinery and property, in Singapore or overseas | Counts towards the S$50 million group cap |
| Green Loan | Green growth projects | Extended to 31 Mar 2031 |
| Venture Debt Loan | Growth of innovative companies, alongside warrants or convertible shares | See EnterpriseSG |
| Mergers & Acquisitions Loan | Buying a company to expand domestically or overseas | Domestic deals now covered permanently |
EFS is a loan, and you pay it back. Grants such as EDGE are the route for money you don’t repay. Our Budget 2026 summary for SMEs covers both.
What does the 70% risk share change for you as a borrower?
Mostly, your odds of approval. If you default, the Government takes more of the loss, so the lender carries less risk on the same loan.
A lender may relax its credit policy for EFS loans. That means a typical application it would normally turn down may get through, and the effect is bigger at 70% than at 50%. Your rate could also be lower than on a non-EFS loan, and likely lower than on an EFS loan at 50%. The lender still sets the price, though, so compare quotes. With a lower expected loss, some lenders will also be more comfortable lending you a larger amount.
What you owe stays the same. You still repay 100% of the loan, owners usually still sign personal guarantees, and the lender still checks your cash flow and ability to repay.
Should you apply for an EFS loan before March 2027?
Yes, if you have a real working-capital need in the next six months. Lending terms are at their best while the higher risk share runs. After 31 March 2027 it goes back to 50%, and lenders may have less appetite for risk.
Year-end is also the busiest time for stock and payment cycles, so a need you have now will probably grow. Good terms are still no reason to borrow on their own. Size the loan to one specific use, such as a stock build, a receivables gap or a payroll bridge, and to what your cash flow can repay.
Who can get an EFS loan, and who lends it?
Your business must be incorporated and operating in Singapore, with at least 30% local shareholding. Group sales must also be within the scheme’s cap, which participating banks list as S$500 million (DBS). The Working Capital Loan and Fixed Assets Loan use a stricter SME test: group annual sales of no more than S$100 million, or no more than 200 employees across the group.
Non-bank lenders can be PFIs too. Funding Societies has been one since 2020 (Funding Societies). Here’s what we see in our 2026 applications.
Most people applying for our EFS-backed Micro Loan run early-stage companies, with less than six months of operating history and annual revenue under S$1 million. Banks tend to pass on them because there’s no track record to underwrite. The EFS risk share is what lets a lender like us look at these applications. Micro Loan approval takes about two working days on average, and our Trade Term Loan averages within a week. Your case may take longer.
Trade demand is going up. Applications for our Trade Term Loan, which we offer under the EFS Trade Loan, have grown more than 30% in each quarter of 2026 so far. Q4 is busier again with year-end and the festive season. The loan finances payables or receivables and you repay it in monthly instalments, so your cash flow is easier to forecast than with one lump-sum repayment.
Which EFS loan fits your need?
If you need working capital under S$500,000, the Working Capital Loan usually fits. Above that, pick the facility by how you’ll use the money and how you’ll repay it.
| Your need | Better fit |
|---|---|
| Payroll, rent, a stock build or a receivables gap, up to S$500,000 | EFS Working Capital Loan |
| Larger trade financing, tied to payables and receivables | EFS Trade Loan |
| Short-term or recurring needs | A revolving line or invoice financing, so you only pay interest on what you use |
| Equipment or property | Asset-backed financing or the EFS Fixed Assets Loan |
Our business loan guide compares EFS with bank and fintech loans.
What should you do before the March 2027 deadline?
Check that you qualify, then start talking to the PFI early.
- Make sure you meet the criteria above. If you want a Working Capital or Fixed Assets Loan, that includes the stricter SME test.
- Ask the PFI, in writing, what it counts as an application, since PFIs may define it differently. Also ask your relationship manager how long they need to prepare and submit your application for official approval.
- If the need is real, apply early. The year-end holidays and Chinese New Year are coming, and processing is slower over festive periods where a surge of applications may jam up processing. Don’t wait until Q1.
- Prepare your documents early. For a Working Capital Loan, the main document is usually your latest six months of bank statements. A trade loan needs more, such as management accounts or financial statements, GST statements and an AP/AR ageing list. If your company is young, add contracts, purchase orders or invoices to show where repayment will come from.
- Work out how you’ll use and repay the loan. Forecast the cash you need, and borrow only what that forecast supports.
- Go to two lenders, one bank and one non-bank. Compare rate, amount, tenor, security and speed, as well as loan structure, early-repayment terms and after-loan support. If you’re new to a lender, it helps to build a track record with it.
When is EFS the wrong choice?
EFS can lift your approval odds, but it won’t fix a weak credit case. Look elsewhere if:
- Your ownership or group size doesn’t meet Enterprise Singapore’s criteria.
- You need more than the S$500,000 Working Capital Loan cap. A different facility, possibly another EFS loan, may fit better.
- You need cash faster than a lender can approve it. Even the faster PFIs, us included, take about two working days to a week, so a revolving line such as an overdraft facility may suit you better.
- Your need is short-term or recurring. A term loan charges interest on money you won’t always use.
- Your cash flow is already stretched and a new loan would add repayment strain. Fix that first.
If EFS fits, compare it with the other SME loans from Funding Societies before you choose a lender.
FAQ
What is the Enterprise Financing Scheme?
It’s EnterpriseSG’s set of seven government-backed business loans, one for each kind of need, from day-to-day working capital to buying another company. You apply through a PFI, and EnterpriseSG shares the default risk with that PFI.
Is EFS a grant?
No. EFS is a loan you repay in full. Grants such as EDGE are separate schemes.
How much can I borrow under EFS?
The Working Capital Loan goes up to S$500,000. All of a borrower group’s EFS loans together are capped at S$50 million. The lender decides your amount based on your cash flow.
When does the higher risk share end?
The higher risk share for the Working Capital and Project Loans runs from September 2026 to 31 March 2027.
Can a non-bank lender offer EFS loans?
Yes. PFIs include banks and non-bank lenders such as Funding Societies.
Does the higher risk share mean I owe less?
No. You repay 100% of the loan. The risk share protects the lender, which can improve your approval odds and pricing.
- Enterprise Financing Scheme Singapore (EFS): 7 Loans and the 70% Risk Share - October 29, 2026
- Budget 2026 for SMEs: What Actually Changed (Updated) - July 27, 2026
- Invoice Financing vs Traditional Loans: Which Wins? - July 15, 2026
