Very small businesses can get loans of up to S$50,000.

As part of the business financing enhancements, Micro Loan will be enhanced from 1 December 2008. See Fact Sheet for the changes.

For who?

Your business qualifies as long as:

• you are registered or incorporated in Singapore
• 30% - 100% of your shareholding is local
• you have 0-10 employees

In addition,

• your company's group fixed assets must be between S$0 - S$15M*
• your group employment size must be between 0 - 200 workers (for businesses in the service industry)*

*Computed on a group basis. Where 20% - 100% of your shares are owned by other companies, the total value of your fixed assets and employees is calculated three levels up. Where your company owns 51% - 100% of another company (subsidiary), your subsidiary's fixed assets and employees will also be added to the computation.

For what?

You can use the loan to:

• fund the daily operations of your business
• automate and upgrade your factory and equipment

Types of loans

• Working Capital Loan^#
• Machinery Term Loan/Machinery Hire Purchase

^#Loan can be structured as a term loan of up to 4 years.

Interest rates and re-payment

• You can choose a fixed interest or variable interest rate loan.

Things to note

• Micro Loan is a loan for smaller businesses offered under Local Enterprise Finance Scheme (LEFS) .
  
  
• Your combined loan exposure for Micro Loans cannot exceed S$50,000.

Facts & figures

• S$720 million worth of loans have been extended to 3,500 companies under the Micro Loan, Local Enterprise Finance Scheme (LEFS) and Loan Insurance Scheme (LIS) from 1 January 2007 - 31 December 2007.
  Source: SPRING Singapore, Annual Report 2007/2008.
  
  
• S$326 million worth of loans have been extended to 10,000 companies under Micro Loan from 2002 - 2006.
  Source: SPRING Singapore, Enterprise Today, January - February 2007.

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