Financing schemes help businesses position themselves for continued growth and global competitiveness. |
Various government assistance programmes are available to help SMEs and infocomm companies to save jobs, enhance business capabilities and to position themselves for continued growth and global competitiveness. In this installment, we look at programmes that provide companies with loans and working capital.
Financial Facilitator Programme
Agency: SPRING Singapore
Objectives
The Financial Facilitator Programme (FFP) aims to facilitate SME loan applications for enhanced government financing schemes. It is a joint initiative by five Enterprise Development Centres (EDCs) and EnterpriseOne Business Information Services @ Singapore Business Federation (EBIS@SBF), with support from SPRING.
Coverage
The FFP covers diagnosis of the financial health of the business, advice on financial management and various financing options, and assistance to put together loan applications.
Eligibility
All companies.
Contact:
EDC @ Association of Small and Medium Enterprises
Tel: (65) 6513 0388
Email: edc@asme.org.sg
EDC @ Singapore Chinese Chamber of Commerce & Industry (SCCCI)
Tel: (65) 6337 8381
Email: edc@sccci.org.sg
EDC @ Singapore Indian Chamber of Commerce & Industry (SICCI)
Tel: (65) 6222 2855/6508 0145
Email: edc@sicci.com
EDC @ Singapore Malay Chamber of Commerce & Industry (SMCCI)
Tel: (65) 6293 3822
Email: info@edcsmcci.com.sg
EDC @ Singapore Manufacturers' Federation (SMa)
Tel: (65) 6826 3020
Email: edc@smafederation.org.sg
EBIS@SBF
Tel: (65) 6827 6830
Email: FundsAssist@ebis.sg
Local Enterprise Finance Scheme
Agency: SPRING Singapore
Objectives
The Local Enterprise Finance Scheme (LEFS) is a fixed interest rate financing programme offering loans of up to S$15 million to encourage and assist local enterprises to modernise and upgrade their operations.
Coverage
- Maximum loan quantum of S$15 million.
- Minimum 5 per cent interest rate for loan tenure of four years and below and minimum 5.5 per cent interest rate for loan tenure of more than four years.
- Government default risk sharing increased to 80 per cent.
- Widened to include financing for more types of construction equipment and heavy vehicles.
- Types of loans under LEFS:
- Factory Loan
- Machinery Term Loan/Machinery Hire Purchase
- Working Capital Term Loan (Unencumbered assets)
Eligibility
At least 30 per cent local shareholding.
Contact:
EnterpriseOne Hotline
Tel: (65) 6898 1800
Email: enterpriseone@spring.gov.sg
Loan Insurance Scheme
Agency: SPRING Singapore
Objectives
The Loan Insurance Scheme assists SMEs and Singapore-based internationalising companies with working capital financing and trade facilities by getting them insured against default.
Coverage
- The Government co-shares 75 per cent of default risk.
- Maximum loan quantum: Up to S$15 million per borrower group.
Eligibility
- Domestic Facilities: Companies with at least 30 per cent local shareholding.
- Export Facilities: Companies with at least three strategic business functions in Singapore.
- Incorporated in Singapore.
Contact:
EnterpriseOne Hotline
Tel: (65) 6898 1800
Email: enterpriseone@spring.gov.sg
Micro Loan Programme
Agency: SPRING Singapore
Objectives
The Micro Loan Programme is aimed at providing SMEs with a loan to assist them in their operations.
Coverage
- Maximum loan quantum of S$100,000.
- Minimum 5 per cent interest rate for loan tenure of four years and below and minimum 5.5 per cent interest rate for loan tenure of more than four years.
- Government default risk sharing increased from 80 per cent to 90 per cent.
Eligibility
- At least 30 per cent local shareholding.
- Registered or incorporated in Singapore.
- Employs 10 or less employees.
- Company’s group fixed assets are below S$15 million.
- Company’s group has no more than 200 employees (for companies in the services sector).
Contact:
EnterpriseOne Hotline
Tel: (65) 6898 1800
Email: enterpriseone@spring.gov.sg
New Bridging Loan Programme
Agency: SPRING Singapore
Objective
The New Bridging Loan Programme provides local companies and foreign SMEs with an interim fixed interest rate loan.
Coverage
- Maximum loan quantum of S$5 million
- Minimum 5 per cent interest rate for loan tenure of four years and below.
- Maximum loan quantum increased from S$500,000 to S$5 million.
- Government default risk-sharing increased from 50 per cent to 80 per cent.
Eligibility
All local companies and foreign SMEs
Contact:
EnterpriseOne Hotline
Tel: (65) 6898 1800
Email: enterpriseone@spring.gov.sg