Venture Debt Programme: Who Qualifies and What You Get
Learn how high-growth startups can access government risk-sharing to secure venture debt loans for their business growth.
The Venture Debt Programme is a scheme designed to support high-growth startups by providing government risk-sharing on loans.
Who it's for
This programme is specifically intended for high-growth startups. To qualify, your business should be operating with an innovative business model that shows significant potential for scaling within the market.
What you get
Under this programme, the government provides risk-sharing support on venture debt loans. This means that the government covers up to 50% of the venture debt, which helps to lower the barrier for businesses seeking non-equity financing to fuel their operations and growth.
What it costs you
Accessing this support is not an automatic process. You are required to submit a formal bank loan application to a financial institution. Because the support is tied to debt, the bank will perform its own detailed assessment of your business's credit risk to determine if you are eligible for the loan.
The catch to know
The most important thing to understand is that this is a loan, not a grant. Unlike a grant, which is money you do not have to pay back, a loan must be repaid. You will be required to service the interest regularly as part of your repayment schedule.
How to apply
- Ensure your startup meets the criteria for high growth and possesses an innovative business model.
- Contact a participating bank to discuss your business needs and the venture debt options available.
- Complete the formal bank loan application and provide the necessary financial documentation.
- Undergo the bank's credit risk assessment to determine your eligibility for the loan and the government risk-sharing component.