Startups that have successfully secured the initial capital and raised funding subsequently often do encounter cash shortage at various stages even as they progress. In order for startups to thrive beyond the cash constraints, it is imperative to provide ample access to debt financing. For this purpose, the government has instituted Startup SG Loan under the Startup SG umbrella.
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Government backed loans are offered by participating financial institutions for various purposes including working capital, equipment or trade financing. The following is a snapshot of various government-backed loan schemes available to SMEs in general. Among them, the SME Micro Loan and SME Venture Loan specifically are featured under the Startup SG Loan scheme.
About Startup SG Loan and Government-backed Loan
| Loan and Scope | Quantum of Loan & Interest | Repayment Period | Eligibility Criteria |
|---|---|---|---|
SME Micro Loan
|
Up to S$100,000
Interest depends on assessment of the participating financial institution |
4 years |
|
SME Venture Loan
|
Up to S$5,000,000
Interest rates, repayment structures, collateral and warrant structures |
– |
|
SME Equipment and Factory Loan
|
UP to S$15 million
Interest depends on assessment of the participating financial institution |
Up to 8 years for equipment loans Up to 10 years for factory loans |
|
SME Working Capital LoanWorking capital Available from 1 June 2016 to 31 May 2019 |
Up to S$300,000
Interest depends on assessment of the participating financial institution |
Up to 5 years |
|
Loan Insurance Scheme (LIS) and LIS+
|
No capUp to S$ 5 million per group
1.5% per annum on the amount insured the government |
– | For Domestic Trade Financing
For International Trade Financing
|
Bridging Loan for Marine and Offshore Engineering (M&OE) Companies
Available for one year from December 2016 |
Up to S$5 million per company or up to S$15 million per borrower group
Interest depends on assessment of the participating financial institution |
Up to 6 years |
|
Read More » Apply for an OCBC Business First Loan
Grab the Startup SG Loan opportunity and start a business today
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