SME Grants In Singapore: Funding For Your Business Growth

The SME Grant in Singapore is like a lifeboat for those who are struggling with costs when operating a business. It helps SMEs to defray costs incurred in activities that contribute to their business growth and productivity. These activities include purchasing equipment, adopting technology, and employee training.

Small Business Recovery Grant (SBRG)

The Small Business Recovery Grant (SBRG) is a one-time payment of up to S$10,000 to small businesses that have been hit the hardest by COVID-19 restrictions over the past year, such as those in the F&B, Retail, Tourism, and Hospitality industries. It is administered by the Inland Revenue Authority of Singapore (IRAS).

To be eligible for Singapore government grants for small businesses, you need to satisfy the following criteria:

• A qualifying firm must be located in Singapore and registered no later than December 31, 2022. Also, it is active and meets one of the following sectors: Food & Beverage, Retail; Performing Arts and Arts Education; Sports; etc.
• Firms must have less than S$100 million in the yearly operating revenue recorded with IRAS in the Year of Assessment 2021 as of 31 December 2021; or employ less than 200 people by that date.

Enterprise Development Grant (EDG)

Enterprise Development Grant (EDG) is a tool to support the development and transformation of SMEs. This grant is administered by Enterprise Singapore.

To be eligible for the EDG, your business must:

• Be registered and operating in Singapore
• Have at least 30% local ownership
• Be financially stable to begin and complete the project

Market Readiness Assistance (MRA) grant

Market Readiness Assistance (MRA) grant will provide financial support to SMEs to help them grow worldwide. Similar to EDG, MRA is handled by Enterprise Singapore.

If businesses want to apply for an MRA grant, they need to meet these requirements:

• Registered or incorporated in Singapore
• New market entry, i.e. target overseas destination where the applicant’s overseas sales have not surpassed S$100,000 in each of the previous three years
• At least 30% of local shareholding Group Annual Sales Turnover of less than S$100 million
• Have a Group Employment Size of no more than 200 employees

Productivity Solutions Grant (PSG)

This grant assists businesses in using IT solutions and equipment to improve business operations. For further information, visit this article on PSG in Singapore.

SkillsFuture Enterprise Credit (SFEC)

Through the SkillsFuture Enterprise Credit (SFEC), businesses are encouraged to invest in enterprise transformation and human resources. Qualified firms would get a one-time S$10,000 credit to cover up to 90% of eligible expenses.

Qualifying Periods

• 1st Period: 1 April 2019 – 31 Mar 2020
• 2nd Period: 1 July 2019 – 30 Jun 2020
• 3rd Period: 1 Oct 2019 – 30 Sep 2020
• 4th Period: 1 Jan 2020 – 31 Dec 2020
• 5th Period: 1 Jan 2021 – 31 Dec 2021 (adjustment in budget 2022)

Qualified employers must satisfy tripartite criteria follow as:

1st – 4th Period

• The employer has contributed at least $750 in Skills Development Levy in a period
• Have employed at least three Singapore Citizens (SCs) or Permanent residents (PRs) monthly
• Have not qualified for any previous period

5th Period

• Have employed at least three Singapore Citizens (SCs) or Permanent residents (PRs) monthly
• Have not qualified for any previous period
• Have an active ACRA status and are not in default of their SDL contributions for the entire period

Note: The deadline to claim credit for employers, (including those that previously qualified) will be extended by one year to 30 Jun 2024.

There are numerous SFEC-supported programs available, such as Skills Framework-aligned courses. These courses support the Market Readiness Assistance (MRA) Grant, the Industry Transformation Maps, and the Business Improvement Fund (BIF).

Startup SG

Startup SG Founder

The Startup SG Founder program offers coaching, investment, and complete access to business networks to first-time entrepreneurs. It links mentors to start-ups for every S$1 raised by the entrepreneur, with a maximum fundraising capital of S$50,000.

Startup SG Tech

In 2017, Startup SG Tech was enhanced to ease cash flow to approved candidates. This program provides early-stage support to enterprises for the commercialization of proprietary technology.

Please keep in mind that this is a competitive grant that start-up tech can apply to speed up the development of proprietary solutions and expand business models. Moreover, there are various grants available for start-up entrepreneurs you should know.

SMEs ‘Go Digital’ Program

Through the “Go Digital Program”, SMEs will be advised on the appropriate technologies to use as they develop and expand, beginning with sectors where digital technology may significantly improve productivity.

Productivity-Max Program (P-Max)

The P-Max program’s primary goal is to assist SMEs in hiring, developing, managing, and maintaining newly recruited PMETs (Professionals, Managers, Executives, and Technicians). This program is suitable for local SMEs seeking to:

• Recruit PMETs
• Improve their internal HR procedure

Follow these tips for a successful Singapore grants application

• Know the requirements of the grant program you are applying for. Each grant program has its specific requirements, so it is important that you understand what is required before beginning your application.
• Be clear and concise in your grant proposal. The reviewers will look for a well-written and organized proposal outlining your project and its objectives.
• Make sure you include all of the required documentation. Incomplete applications will not be considered.
• Follow all instructions carefully. Pay attention to detail and be sure to complete all required forms and attachments.
• Submit your application on time. Late applications will not be accepted.

Conclusion

Government grant for SMEs in Singapore is like a lifeboat during difficult times. The grant provides much-needed financial aid to help SMEs with their operations and keep them afloat. This is a very welcome move by the government and will go a long way in helping the small business community in Singapore!

In case of any questions regarding SME Grant in Singapore or doing business in general, we recommend your discussing with our dedicated team through the chatbox, or send us an email at service@bbcincorp.com. We are happy to help!

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