Small and medium-sized enterprises (SMEs) play a crucial role in Singapore’s economy, accounting for almost 99% of all enterprises and employing over two-thirds of the workforce.
However, running an SME can be challenging, especially when it comes to securing SME funding for business operations and expansion.
Thankfully, there are several grants available for SMEs in Singapore to help them achieve their goals.
In this article, we’ll explore some of the grants available for SMEs in Singapore and what they offer.
1. Capability Development Grant (CDG)
The Capability Development Grant (CDG) is a government initiative that provides financial assistance to SMEs seeking to enhance their capabilities in areas such as productivity, innovation, and internationalization. Under this grant, businesses can receive up to 70% funding support for qualifying projects.
To be eligible for the CDG, businesses must have a presence in Singapore, be registered and operating for at least two years, and have a minimum of 30% local shareholding.
The CDG supports a wide range of projects, including business process improvement, development of new products and services, and technology adoption.
Businesses can apply for the CDG through the Business Grants Portal, a one-stop online platform that streamlines the application process for all government grants.
2. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) is another government grant aimed at helping SMEs adopt technology and productivity solutions.
The PSG covers up to 80% of the cost of off-the-shelf productivity solutions, such as accounting software, human resource management systems, and digital marketing solutions.
To be eligible for the PSG, businesses must be registered and operating in Singapore and have a minimum of 30% local shareholding. The PSG is open to all sectors and is designed to help businesses improve productivity and competitiveness.
The PSG has been streamlined with the Business Grants Portal to make it easier for businesses to apply for the grant. Businesses can apply for the PSG through the portal and receive the funding within a few weeks.
3. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is a government grant that provides funding support to SMEs seeking to upgrade their capabilities and expand overseas.
The EDG covers up to 70% of qualifying project costs, including consultancy services, overseas market development, and investment in automation and technology.
To be eligible for the EDG, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and be financially viable. The EDG is designed to help businesses build up their capabilities and expand their reach in overseas markets.
The EDG supports three types of projects: core capabilities, innovation and productivity, and market access. Businesses can apply for the EDG through the Business Grants Portal, and the application process typically takes four to six weeks.
4. Market Readiness Assistance (MRA) Grant
The Market Readiness Assistance (MRA) Grant is a government grant that helps SMEs enters overseas markets.
The MRA Grant covers up to 70% of qualifying costs, including market assessment, market entry, and overseas market promotion.
To be eligible for the MRA Grant, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have an annual turnover of less than S$100 million. The MRA Grant is designed to help SMEs expand their business overseas and gain exposure to new markets.
The MRA Grant supports activities such as market feasibility studies, market entry consultancy, overseas trade fairs, and overseas business development. Businesses can apply for the MRA Grant through the Business Grants Portal, and the application process typically takes four to six weeks.
5. SME Working Capital Loan
The SME Working Capital Loan is a government-supported loan initiative that provides SMEs with access to affordable financing to meet their business needs. Under this initiative, SMEs can borrow up to S$1 million, with repayment terms of up to five years.
To be eligible for the SME Working Capital Loan, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have an annual turnover of less than S$100 million. The loan can be used to finance a range of business expenses, including inventory, equipment, and operating expenses.
The SME Working Capital Loan is offered by participating financial institutions, and businesses can apply directly to these institutions. The government provides a 50% risk-share on the loan, making it easier for businesses to secure financing.
6. Startup SG Founder Grant
The Startup SG Founder Grant is a government grant aimed at supporting first-time entrepreneurs in Singapore.
The grant provides up to S$30,000 in funding support to entrepreneurs who have a business idea and are looking to start a new company.
To be eligible for the Startup SG Founder Grant, entrepreneurs must be Singaporeans or Permanent Residents, have a business idea that is innovative and has the potential for growth, and own at least 30% of the new company’s shares. The grant can be used to cover expenses such as software development, legal fees, and office rental.
The Startup SG Founder Grant is administered by Enterprise Singapore, and applications can be submitted through the Business Grants Portal. Successful applicants will receive the funding in tranches as they meet specific milestones in their business plan.
7. Technology Enterprise Commercialization Scheme (TECS)
The Technology Enterprise Commercialization Scheme (TECS) is a grant scheme that provides funding support to SMEs looking to commercialize their innovative technology solutions.
The grant covers up to 70% of qualifying project costs, including product development, intellectual property protection, and market validation.
To be eligible for TECS, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have a clear technology commercialization plan.
The scheme is designed to help businesses bring their technology solutions to market and improve their competitiveness.
TECS supports three types of projects: Proof-of-Concept, Prototyping, and Market Access. Businesses can apply for TECS through Enterprise Singapore’s website, and the application process typically takes six to eight weeks.
8. Market Access Upgrade (MAU) Grant
The Market Access Upgrade (MAU) Grant is a grant scheme that helps Singaporean SMEs expand their overseas presence and access new markets.
The grant covers up to 70% of qualifying project costs, including market research, branding, and product certification.
To be eligible for the MAU Grant, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have an annual turnover of less than S$100 million.
The grant is designed to help businesses gain a foothold in overseas markets and compete effectively with international brands.
MAU supports three types of projects: market entry, market expansion, and brand development. Businesses can apply for the MAU Grant through Enterprise Singapore’s website, and the application process typically takes four to six weeks.
9. Business Improvement Fund (BIF)
The Business Improvement Fund (BIF) is a grant scheme that helps SMEs in the retail, food services, and lifestyle sectors transform their business models and improve their operations.
The grant covers up to 70% of qualifying project costs, including process improvement, product innovation, and branding.
To be eligible for the BIF, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and be in the retail, food services, or lifestyle sectors.
The BIF is designed to help businesses stay competitive in a rapidly changing business environment and meet evolving consumer needs.
The BIF supports three types of projects: Capability Development, Process Improvement, and Product Innovation. Businesses can apply for the BIF through Enterprise Singapore’s website, and the application process typically takes four to six weeks.
10. Work-Life Grant
The Work-Life Grant is a government grant that encourages SMEs to adopt flexible work arrangements and support their employees’ work-life balance. The grant covers up to 70% of qualifying project costs, including training, consultancy, and equipment.
To be eligible for the Work-Life Grant, businesses must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have a clear plan to implement flexible work arrangements.
The grant is designed to help businesses attract and retain talent, improve productivity, and create a positive workplace culture.
The Work-Life Grant supports three types of projects: Flexible Work Arrangements, Job Redesign, and Work-Life Training. Businesses can apply for the Work-Life Grant through the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) website, and the application process typically takes four to six weeks.
Conclusion
There are various grants available for SMEs in Singapore that can help businesses upgrade their capabilities, expand overseas, adopt technology solutions, and access affordable SME financing.
These grants are designed to support businesses at different stages of their growth journey, from startups to established enterprises.
It’s important for SMEs to assess their business needs and explore the different grant options available to them.
The Business Grants Portal is an excellent resource for businesses looking to apply for government grants, as it provides a streamlined application process and access to information on all government grants.
By leveraging these grants, SMEs can gain a competitive edge and achieve their business objectives in Singapore’s dynamic and vibrant economy.
