EnterpriseOne - Micro Loan Programme

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HELPDESK

enterpriseone@spring.gov.sg

Government Assistance - LOANs

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Micro Loan Programme

Very small businesses can get fixed interest rate loans of up to S$100,000.

With improvements to the global economic outlook, government risk sharing and interest rates for Micro Loan will be revised from 1 February 2010. Find out more about 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 - 15 million*
your group employment size must be between 0 - 200 workers (for services sector)*

*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

It is a fixed interest rate financing programme.

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$100,000.

Changes from 1 February 2010 - 31 January 2011

Existing Revised

Interest rates Minimum of 5% for loan tenures of 0-4 years Minimum of 5.5% for loan tenures of 0-4 years

Risk sharing of loan default Government: 80%
PFI: 20% Government: 70%
PFI: 30%