Local high-growth enterprises will have a new financing option to support their expansion plans through SPRING Singapore’s pilot Venture Debt Programme (VDP). Under the programme, DBS Bank (DBS), OCBC Bank (OCBC) and United Overseas Bank (UOB) will catalyse about 100 venture debt loans, totalling close to $500 million over two years. UOB will also be administering venture debt loans to high-growth, innovative start-ups through its associate company, InnoVen Capital Singapore Pte. Ltd. SPRING will provide 50% risk-sharing to these financial institutions for such loans. SMEs can apply for venture debt loans of up to $5 million each for working capital, assets, projects or mergers and acquisitions for the purpose of business expansion

 

Announced at Budget 2015, the VDP complements current government loan financing schemes. Studies have showed that local enterprises in certain high-growth sectors face challenges in obtaining financing to support their growth. This includes innovative start-ups that typically have high financing needs, and growth enterprises in nascent sectors such as advanced manufacturing, clean technology or biomedical.