Local Enterprise Finance Scheme (LEFS)

What is it?

  • A government initiative of assisting local enterprises raise funds to finance their business.
  • Partnering with local lending institutions, the scheme offers loans of up to $15 million for all locally owned SMEs.
  • Maximum Loan Quantum of $15 million
  • All locally owned SMEs are eligible to apply.

How does it benefit you?

  • Allows for automating and upgrading factory and equipment
  • Allows for purchasing factory and business premises (only JTC Corporation or Housing & Development Board properties).
  • Allows for financing of construction equipment and heavy vehicles.

Interest Rate

  • Minimum 4.75% interest rate for loan tenure of 4 years and below.
  • Minimum 5.25% interest rate for loan tenure of more than 4 years.

Who is eligible to apply?

All locally-owned SME with the following eligibility criteria:

  • at least 30% local shareholding.
  • annual turnover of not more than S$100 million OR number of employees not more than 200.
  • If your company is part of a group, then the criteria will be computed on a group basis.

How to apply?

Consult us for professional advice to ensure that your business qualifies for the loan. We will provide comprehensive services to take you through the entire application process from review to application to approval to disbursement of funds.  If it turns out that your business does not qualify for the LEFS, we will propose other suitable funding options. Prepare the supporting documents where necessary:

  • a copy of your business profile from ACRA
  • audited accounts or certified financial statements for the past 2 years
  • bank statements for past 6 months
  • personal income tax assessment of owners and directors for past 2 years

Application Process

  • We will submit the Application Form with all the necessary supporting documents to the bank or lending institution.
  • Waiting period of about 3 weeks the approval process.
  • Processing of applications may be longer depending on the size of the loan and other factors.
  • Upon successful application, receive funds from the bank or financial institution.
  • Loan Repayments usually start 1 month after disbursement of the loan.  Make sure to keep proper records of loan repayments.
  • Ensure you make repayments on time.