Government Grants for Companies

Singapore Government Grants, Financing Schemes, and Assistance

Singapore offers a range of government grants, financing schemes, and assistance programs to support businesses of all sizes in their growth, innovation, and internationalization efforts. These initiatives are designed to enhance competitiveness, boost productivity, and drive economic growth. Here's an overview of some of the key programs available to businesses in Singapore.

1. Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) aims to help Singapore companies grow and transform. It supports projects that help businesses upgrade, innovate, and venture overseas.

Key Areas Supported:

• Core Capabilities: Projects that strengthen business foundations, such as business strategy development, financial management, and human capital development.

• Innovation and Productivity: Projects that support the creation of new products, services, processes, or the adoption of technology and automation.

• Market Access: Projects that support expansion into international markets, such as market research, overseas marketing, and business matchmaking.

Funding: Up to 50% of qualifying costs for SMEs, and up to 30% of qualifying costs for non-SMEs of qualifying project costs, depending on the nature and scale of the project.

2. Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes. This grant covers sector-specific solutions as well as broad-based solutions like customer management, data analytics, and financial management.

Key Features:

• Pre-Approved Solutions: Funding support for a list of pre-scoped IT solutions and equipment.

• Industry-Specific: Covers industries such as retail, food services, logistics, precision engineering, and construction.

Funding: Up to 50% of the cost of pre-approved solutions.

3. Market Readiness Assistance (MRA) Grant

The Market Readiness Assistance (MRA) Grant is designed to support Singapore SMEs in expanding their business overseas. It covers various costs related to international market entry.

Supported Activities:

• Overseas Market Set-Up: Costs related to establishing an overseas presence.

• Overseas Business Development: Participation in overseas trade fairs, business matching, and in-market business development.

• Market Entry: Market research and feasibility studies for entering new markets.

Funding: Capped at S$100,000 per company per new market.

4. Startup SG

Startup SG represents the umbrella branding for all support schemes for startups in Singapore. It encompasses various grants and programs to nurture a vibrant startup ecosystem.

Key Programs:

• Startup SG Founder: Provides mentorship and startup capital grants to first-time entrepreneurs with innovative business ideas.

• Startup SG Tech: Supports Proof-of-Concept (POC) and Proof-of-Value (POV) projects for startups developing proprietary technology solutions.

• Startup SG Equity: Co-investment fund for innovative startups with strong growth potential.

Funding: Varies by program, with Startup SG Founder providing up to S$50,000 in startup capital grants, and Startup SG Tech offering up to S$500,000 for POC projects.

5. SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit (SFEC) encourages employers to invest in enterprise transformation and capabilities of their employees. Eligible employers will receive a one-off $10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs.

Qualifying Costs:

• Enterprise Transformation: Costs related to the adoption of productivity solutions and Industry 4.0 solutions.

• Workforce Transformation: Costs related to employee training and skills development.

Eligibility: Employers must have contributed at least S$750 Skills Development Levy in the preceding year and have at least three local employees.

6. Temporary Bridging Loan Programme (TBLP)

The Temporary Bridging Loan Programme (TBLP) provides access to working capital for business needs, helping Singapore-based enterprises manage their cash flow.

Loan Details:

• Maximum Loan Quantum: Up to S$1 million per borrower.

• Interest Rate: Capped at 5.5% per annum.

• Repayment Period: Up to five years.

Government Risk-Sharing: The government co-shares 70% of the risk of the loan with participating financial institutions.

7. Enterprise Financing Scheme (EFS)

The Enterprise Financing Scheme (EFS) aims to support Singapore SMEs across various stages of growth and covers different types of financing needs.

Types of Financing:

• Working Capital Loan: For daily operations and business expansion.

• Fixed Assets Loan: For purchase of equipment and fixed assets.

• Venture Debt Loan: For high-growth startups.

• Trade Loan: For trade financing needs.

Government Risk-Sharing: Varies by scheme, with up to 70% risk-sharing for certain loan types.

Conclusion

Singapore's government offers a comprehensive suite of grants, financing schemes, and assistance programs to support businesses in their growth, transformation, and internationalization efforts. By leveraging these programs, businesses can enhance their capabilities, improve productivity, and achieve sustainable growth. For more detailed information on each program, visit the respective government websites or consult with business advisors.