Best Business Grants in Singapore for 2020 [Must Read]

April 7, 2020

Written by

Multiply Team

The Most Popular Government Grant for SME in 2020

Contributing 48% to Singapore’s GDP and employing an estimated 65% of the workforce, Small and Medium Enterprises (SMEs) are incredibly vital to the growth of the country’s economy. The government has come up with many schemes to provide assistance and support to SMEs in Singapore.

Here’s a list of the most popular government grants for SMEs, designed to help SMEs grow and expand.

For current SMEs in operation, there are plenty of grants provided by the government to help businesses grow and expand into overseas markets. Below are four of the most popular. Each grant has a specialised funding for a specific area to enable companies with further progression. There is also capital funding available for entrepreneurs who wish to embark on a new business venture.

Grants for Existing SMEs

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) provides support for Singapore companies to grow and revamp their business.

Projects are eligible for funding if they are defined by their ability to either improve business foundations, explore new opportunities of growth and increased efficiency, or if SMEs are prepared and seeking to expand into overseas markets.

Primarily, this grant funds projects that help to upgrade businesses, innovate, or progress overseas, under three categories: core capabilities, innovation and productivity, and market access.

Eligibility:

  • Registered and operating in Singapore
  • Minimum 30% local shareholdings
  • Group annual sales turnover less than S$100m per annum, or less than 200 employees

More information can be found here.

Market Readiness Assistance (MRA)

The Market Readiness Assistance grant, or MRA, is designed with the sole purpose of helping Singapore SMEs gain exposure to overseas opportunities for possible expansion.

What Eligible SMEs Will Receive:

  • Up to 70% of eligible costs, capped at S$100,000 per company per new market* from 1 April 2020 to 31 March 2023 that covers:
  • Overseas market promotion
  • Overseas business development
  • Overseas market setup

There is a limit of one activity per application.

Eligibility:

  • Registered and operating in Singapore
  • A minimum of 30% local shareholdings
  • Group annual turnover not exceeding S$100 million per annum, or less than 200 employees

More information can be found here.

Productivity-Max (PMax)

SMEs looking to employ PMETs or improve their HR practices can consider this grant.

The P-Max programme helps to defray costs in the recruitment of Professionals, Managers, and Executives (PMEs) and the retainment of employees.

Participating SMEs can be compensated up to 90% course fee subsidy for PMET, SME training workshops, and Age Management workshops.

Upon completion of the programme and six-month retention of the newly hired PMETs, eligible SMEs will receive a one-time S$5,000 Assistance Grant or $10,000 Assistance Grant (P-Max for Older Workers only).

Eligibility:

  • Registered and operating in Singapore
  • Group annual turnover not exceeding S$100 million per annum, or less than 200 employees
  • A minimum of 30% local shareholdings
  • Hired a PMET within the last three months prior to programme enrolment, PMET earns a gross monthly salary of at least S$2,500

More information can be found here.

Enhanced iSPRINT

This scheme aims to boost SME’s productivity and growth, provide SMEs with broader coverage, simplify the application process, and eliminate the need for claim submissions by SMEs. The new, improved factors include piloting new sector solutions, institutionalise proven sector solutions, and high-speed connectivity that SMEs can enjoy.

IT vendors and SMEs looking to develop new solutions that transform a particular sector are eligible for the scheme. SMEs will be able to receive up to 80%, capped at S$1 million per SME for their solution, depending on the expected sector impact.

There is also funding for SMEs seeking to establish proven solutions. SMES may deploy solutions from IDA’s list of Packaged Solutions, with support from IDA of up to 70%.

SMEs can enjoy high-speed connectivity with IDA’s support if they are to implement any of the solutions in the enhanced iSPRINT. However, this excludes basic solutions. IDA will subsidise SME’s fibre subscription plans of at least 100Mbps and provide additional support by supplying Wireless@SG services at their premises.

More information on the grant and pre-qualified productivity and growth solutions are available at https://www.imda.gov.sg/sme.

Grants For Entrepreneurs

StartupSG Founder

This scheme provides start-up capital grants for first-time entrepreneurs. Start-ups are required to make and commit S$10,000 as a co-matching fund to the grant.

Enterprise Singapore has appointed Accredited Mentor Partners (AMP) to select applicants and aid them by giving advice, conducting learning programs, and networking contacts.

Eligibility:

  • Be a first time entrepreneur and 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

Start-up Company Requirements:

  • Operate within 6 months of application
  • Have minimum 51% Singaporean Citizen/PR Shareholding
  • Have business activities conducted mainly in Singapore
  • Have not received funding for the proposed business idea from another government organisation
  • Not be in fields such as cafes, nightclubs, lounges, bars, food reflexology, massage parlors, beauty salons, gambling, prostitution, social escort, etc

More information can be found here.

ACE Startups Grant

This grant provides funding to support Singaporeans who are seeking to establish a business of their own.

ACE will match $7 to every $3 raised by the entrepreneur, for up to S$50,000.

For capital-intensive industries, the individual can consider applying for an additional S$50,000, which ACE will match $3 for every $7 raised.

Eligibility:

  • First time entrepreneur
  • Holds at least 51% shareholding of company
  • Key decision maker
  • Committed on a full time basis
  • Have parental consent if under 18 years old

More information can be found here.

Multiply Team

Multiply brings a fresh perspective to financial services. We offer simple and flexible financing for smaller businesses.

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