SINGAPORE - Local high-growth firms now have a new financing option to support their expansion plans, enterprise development agency Spring Singapore said on Thursday (April 28).

Under the scheme, called the Venture Debt Programme, the three local banks - DBS, UOB and OCBC - will catalyse about 100 loans amounting to almost S$500 million over two years.

Spring Singapore will share 50 per cent of the risk with the banks.

Small- and medium-sized enterprises (SMEs) will be able to apply for venture debt loans of up to S$5 million each for working capital, assets, or mergers and acquisitions.

Venture debt is a type of alternative financing for enterprises that have high growth potential but lack established revenue streams or assets to use as collateral.

The scheme was first announced in last year's Budget.