SME Grants in Singapore

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SMEs have always received tremendous support from the Singapore government in terms of grants. In the midst of this pandemic, there have also been many initiatives by MAS, together with Singapore’s financial institutions to help ease financial strain and cash flow constraints.

As a SME, it is essential to know what support and grants are applicable for your business. It is important to leverage on these grants right now to drive your business forward. To help you keep up with the ever changing grants, we have put together a list of available grants which may help with the expansion and growth of your business.

 

1. Startup SG Founder

 

Don’t be afraid of starting your own business during this pandemic, the Startup SG Founder scheme by Enterprise Singapore is exactly for aspiring entrepreneurs who are looking for capital grants to kick start their first business.

The enhanced Startup SG Founder scheme will comprise of two tracks: The Startup SG Founder “Start” track which provides a grant and The Startup SG Founder “Train” track which provides a 3 month venture-building programme for aspiring entrepreneurs.

StartupSG Founder “Start” Track

This track provides a startup capital grant of S$30,000 to first-time entrepreneurs. A requirement is that entrepreneurs also have to raise and commit S$10,000 as a co-matching fund to the grant. (Note: Effective from 25 September 2020, this grant will be enhanced and the capital grant provided will be raised to S$50,000)

As a first time entrepreneur, you will also be provided mentorship under this scheme. Applicants will be selected by Accredited Mentor Partners (AMP) appointed by Enterprise Singapore. These AMPs will assist the startups by giving advice, learning programs and networking contacts. AMPs may also take up equity in the startup. Startups interested in applying for the grant should approach AMPs with their business plan, and to find out more details on their equity terms.

 

Eligibility

Before 25 September 2020:

To be eligible for this SME grant, the main applicant(s) must:

  • Be a first-time entrepreneur & Singaporean Citizen / PR
  • Hold more than 30% equity
  • Commit full time and be the key decision-maker of the company upon acceptance of the grant

Additionally, the startup company must:

  • Not be more than 6 months of incorporation at the point of application
  • Have minimum 51% Singaporean Citizen/ PR shareholding
  • Have business activities conducted mainly/wholly in Singapore
  • Have not received funding for the proposed business idea from another government organization
  • Not be in areas such as cafes, nightclubs, lounges, bars, foot reflexology, massage parlors, beauty salons, gambling, prostitution, social escort, etc.

 

After 25 September 2020:

To be eligible for this SME grant, the main applicant(s) must:

  • Consist of a team of at least 3 SC/PRs
  • At least 2 of the 3 main applicants are first-time entrepreneurs, and must hold a minimum of 30% equity in the company collectively
  • Dedicate a reasonable amount of time on the business and is a key decision maker(s) in the company, applicant must not be employed full time by another employer

Additionally, the startup company must:

  • Have a minimum 51% SC/PR shareholdings
  • Not be more than 6 months of incorporation at the point of application to the AMP
  • Have not received funding for the proposed business idea from another government organization
  • Not be in areas such as cafes, nightclubs, lounges, bars, foot reflexology, massage parlors, beauty salons, gambling, prostitution, social escort, etc.

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Note: As the grant is only available for first-time entrepreneurs, there must not have more than one business entity registered under the applicant’s name. In addition, the business should not have been registered or incorporated for more than 6 months at the point of application to Enterprise Singapore (ESG).

Startup SG Founder “Train” Track

Apart from this grant, there will also be a new Startup SG Founder “Train” track, a 3-month Venture Building (VB) programme. Enterprise Singapore has appointed Accredited Mentor Partners-Venture Builders (AMP VBs) with strong track records of venture building provide this programme, which will provide support for sourcing innovation, commercialising these ideas into scalable businesses, getting product/solution validation from customers and finding capital.

 

Eligibility

To be eligible for this programme, the applicant must:

  • Be a Singaporean Citizen / PR
  • Commit to 100% attendance
  • Selection of participants are subject to the AMP VB’s screening criteria, which takes into consideration, but is not limited to, the aptitude, expertise, background and related experience of the applicant.

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2. Enterprise Development Grant (EDG)

 

The Enterprise Development Grant (EDG) is a grant by Enterprise Singapore (ESG).This grant is a combination of the former Capability Development Grant (CDG) and Global Company Partnership (GCP) Grant which ended on 24 October 2018. This grant is suitable for businesses who are looking to upgrade their businesses or take it to the next level with new innovations or markets. If you have a huge project upcoming, SMEs should check if the project falls under EDG’s categories and definitely tap on this grant.

‍EDG is a grant that funds up to 80% qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost from 1 April 2020 to 31 December 2020. For enterprises that are most severely impacted by COVID-19, the maximum support level may be raised to 90% on a case-by-case basis.

Note: This grant is on a reimbursement basis, which means that businesses will have to pay upfront for the project cost and receive the grant after the project is complete. SMEs will have to engage consultants or solution vendors and complete a full project scope before applying for the grant. You will have to fill in a project proposal template for your grant application.

EDG is categorised into 3 main areas of internal capabilities: 

  1. Core Capabilities
    1. Business Strategy Development
    2. Financial Management
    3. Human Capital Development
    4. Service Excellence
    5. Strategic Brand and Marketing Development
  2. Innovation and Productivity
    1. Automation
    2. Process Redesign
    3. Product Development
  3. Market Access.
    1. Mergers and Acquisitions (M&A)
    2. Overseas Marketing Presence (OMP)
    3. Pilot Project and Test Bedding
    4. Standards Adoption

Eligibility

To apply, a company must:

  • Be a registered business and operating in Singapore
  • Have a minimum of 30% local shareholdings
  • Be in a feasible financial situation to start and complete the project

Note: Application of the EDG grant will be assessed based on the project scope, project outcomes and competency of the service provider.

Additionally, you will need the following information for your EDG application:

  • Your company’s CorpPass
  • ACRA information
  • Audited financial statements
  • Relevant proof of quotation or proposal
  • Management consultancy scopes
  • Relevant consultants’ certification
  • Completed Project Proposal

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4. Productivity Solutions Grant (PSG)

 

Lastly, if your business is simply looking for an upgrade of technology or go-digital solutions, there is also the Productivity Solutions Grant (PSG) targeted just for this.

PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. As well as solutions in other areas such as customer management, data analytics, financial management and inventory tracking.

The maximum funding support level will be raised to 80% from 1 April 2020 to 31 December 2020. The scope of generic solutions will also be expanded to help enterprises implement COVID-19 business continuity measures.

These solutions have been pre-scoped by various government agencies such as Enterprise Singapore, National Environmental Agency (NEA) and Singapore Tourism Board (STB), which saves businesses the hassle of having to source for their own solution providers.The list of readily adoptable solutions can be found on GoBusiness Gov Assist.

 

Eligibility

To apply, a company must:

  • Be registered and operating in Singapore
  • Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
  • Have a minimum of 30% local shareholding; with Company’s Group annual sales turnover less than S$100 million, OR less than 200 employers (for selected solutions only)

Additionally, you will need the following information for your PSG application:

  • Your company’s CorpPass
  • Quotation from one of the pre-approved vendors

Apply Now

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Shaun Tan

Loan Executive

With 6 years of financial planning experience, Shaun has helped many individual and corporate clients achieve their goals. 

Shaun is passionate about life and adventure, and is a licensed divemaster who enjoys bringing the joy of the underwater world to others.