Do you want to start or grow your small business but need help getting the funds? If so, there’s good news for aspiring entrepreneurs in Singapore!
SME grants have been made available by the government of Singapore with a focus on supporting businesses and boosting their growth. These grants are specifically meant for Small and Medium Enterprises (SMEs) to cover costs such as expansion, hiring employees, training staff, and purchasing equipment and technology. Business loans from financial institutions can also be used to supplement these grants.
1. Small Business Recovery Grant
Businesses can make use of the Temporary Bridging Loan Programme to secure finances or borrow money from banks. The loan amount is up to SGD 5 million, and it has a tenor option between 1 year and 3 years at maximum for this SME grant in Singapore.
This coupon-based financing will feature special discounts, cash backs, rebates, etc. That is applicable to certain approved digital solutions by Enterprise Singapore (ESG). However, these funds should be used only for restructuring business operations instead of taking out personal loans.
This program helps entrepreneurs who don’t qualify under other government grants but require urgent assistance due to unforeseen circumstances such as Covid-19 pandemic-related hardships.
2. Capability Development Grant
Facilitated by Enterprise Singapore (ESG), CDG helps small enterprises purchase or subscribe to IT solutions, products, and licensing that can improve business operations in a cost-effective manner.
Businesses that complete projects leveraging CDG are eligible for 80% of total project costs, capped at SGD 30,000 per project/per year, respectively, dependent on product categories.
3. Enterprise Development Grant
The Enterprise Development Grant (EDG) provides businesses of all sizes with an opportunity to develop their existing core capabilities and build innovative solutions. Each recipient is eligible for up to 70 percent reimbursement, subject to a cap based on the size of the business. This can be used towards resources such as new software licenses or prototypes demonstrating potential applications and uses within the company’s products/services portfolio.
In order to qualify for EDG support, applicants must meet financial criteria indicating they’re financially able to complete projects without compromising other ongoing operations, have annual sales turnover below $100 million, or employee count lower than 200 people at incorporation time.
4. Productivity Solutions Grant
Productivity Solutions Grant is a government grant for SMEs in Singapore to help them purchase items, manage subscription costs of cloud technologies, and buy IT licenses. It provides up to 80% of the eligible project cost with a cap amount per firm of SGD 30,000 for Type 1 projects and SGD 70,000 for Type 2 projects.
To qualify for this grant, the business must have at least 10 local employees and an annual sales turnover of no more than $100 million (SGD).
5. Temporary Bridging Loan Programme
The purpose of this scheme is twofold: it helps them fund short-term working capital costs and also long-term loan requirements incurred in running their business. It gives loans with zero interest rates at a maximum amount of SGD 500,000 per approved firm against qualifying security criteria either by fixed deposits or corporate guarantees from guarantors who are Singaporean owners with shares over 30%.
To ensure that companies can maximize their investments, the Technology-Based Learning Project (TBLP) has implemented an additional spending limit. This spending limit states that no more than 40% of the total granted funds can be used to purchase IT/IP products and solutions. The remaining 60% must be used for other areas that are stated above.
6. Early Stage Venture Fund
The program offers up to $500,000 or 20-50% of the total project cost for each applicant, with no cap on individual grants. This helps bridge the gap between resources held by small businesses as compared to larger ones without diluting equity ownership.
To qualify for this funding opportunity, applicants should focus on their venture’s business model and demonstrate good market traction over 6 months before applying. ESVF especially targets early-stage startups founded less than 18 months prior but having proof of concept technology/product development, which can help them secure seed round investments once they receive funds through the ESGF scheme.
7. Market Readiness Assistance (MRA) Grant
MRA provided under SPRING Singapore facilitates vendor firms� capability upgrades required when entering international markets, such as exhibition fees and costs associated with covering insurance, registration charges, etc. Businesses can claim up to 70% of eligible expenditure, capped at SGD 30K per year; however, certain sectors could avail additional assistance via industry-specific schemes managed by International Enterprise (IE).
SMEs in Singapore must be proactive in taking advantage of the various grants available. ThinkSME provides reliable resources and insights on where SME owners should begin their grant journey. Furthermore, by obtaining financial assistance from government schemes or private entities, businesses can safeguard themselves against rising operating costs during challenging times and ensure that they stay afloat.
Therefore, it’s important for business owners in Singapore to access these sources of vital funding aid to solidify a successful operation amidst uncertain economic conditions!
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