Budget 2021: Venture Debt programme for high-growth enterprises to be extended and enhanced

The government will extend support for, and enhance, the Enterprise Financing Scheme-Venture Debt programme for high-growth enterprises by increasing the cap on the loan quantum supported to S$8 million, from S$5 million currently.

Deputy Prime Minister and Finance Minister Heng Swee Keat said in his Budget Speech on Tuesday that Singapore's ecosystem of budding entrepreneurs and venture funds is growing. From 2016 to 2019, there has been an annualised growth rate of 44 per cent in the amount of early-stage funds raised for promising enterprises.

Under the Venture Debt programme - which also applies to start-ups - the government shares up to 70 per cent of the risk on eligible loans with participating financial institutions. Mr Heng said the government expects about S$45 million of venture debt to catalysed over the next year.

The extension of the scheme is part of the government's plan to catalyse the flow of capital and bridget market gaps as it steps up risk-sharing arrangements with providers of capital, and provides grants, to support businesses at different stages of growth, Mr Heng said.