Grant

Types of Grants for Local Businesses in Singapore in 2024

Dom

February 26, 2024
6
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Whether you are a start-up company, small and midsize enterprises (SMEs) or an established company, Singapore government grants like the EDG Grant can support your growth plans.

With a range of business grants for Singapore SMEs and Startups made available in 2023, Singapore companies have many government resources to tap on that can support them in taking their next steps to grow. Enterprise Singapore grants help committed companies build capabilities, innovate and expand overseas with EDG Grant.

When Should You Be Considering a Grant for SMEs in Singapore?

Depending on your business goals, once you have grown your business, whether a startup or an SME, in Singapore to a certain size, you need to prepare to expand locally and then overseas to take your business to the next level of growth. When you do start to venture into new larger markets, it’s critical to plan your marketing budgets carefully and to use data to determine where you should be spending your marketing dollars.

Your growth framework needs to be setup and fine tuned locally to use data effectively before you attempt to venture to larger markets. When you do need to cater for huge growth it’s critical to ensure you have the right systems in place that can adapt to the growth opportunities as they happen. You will not have time to react cost effectively if things are not already in place.

To support companies in their various stages with financial assistance, the Singapore Government has made available several grants through Enterprise Singapore, who work with committed companies to build capabilities, innovate and internationalise.

Types of Business Grants Available for SMEs and Startups

Listed below are many of government grants for SMEs and Startups in 2024 available to companies from Enterprise Singapore. 

Government SME Grants - A Catalyst for SME Growth

The Singapore government offers various SMEs grants to accelerate local enterprise growth. SMEs can tap on grants for small business Singapore like the Enterprise Development Grant (EDG) – Singapore grant for SMEs and others under Enterprise Singapore.

These government grants for sme provide funding support for critical business functions - from innovation to market access. Read on how an EDG can catalyse your SME’s expansion plans.

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) supports projects that help upgrade, innovate, grow and transform an SME.

EDG funds qualifying project costs namely third-party consultancy fees, software and equipment, and internal manpower cost. Up to 50% of eligible costs for local SMEs are funded under this grant.

Market Readiness Assistance (MRA) Grant

The Market Readiness Assistance (MRA) grant helps companies expand into new markets overseas by defraying the costs of overseas market promotion, business development and set-up.

An enhanced MRA grant cap of up to S$100,000 is extended until 31 March 2025 which include:

  • Overseas market promotion
  • Overseas business development
  • Overseas market set-up

Energy Efficient Grant (EEG)

The Energy Efficiency Grant (EEG) aims to help businesses in the Food Services, Food Manufacturing and Retail sectors cope with rising energy costs through co-funding support to invest in energy-efficient equipment.

The grant provides up to 70% support for SMEs to adopt pre-approved energy-efficient equipment in the following categories: LED lighting, air-conditioners, cooking hobs, refrigerators, water heaters and clothes dryers.

Business Improvement Fund (BIF)

The Business Improvement Grant is offered by the Singapore Tourism Board (STB) to support Singapore-registered businesses in the tourism sector. The grant aims to encourage technology innovation and adoption, redesign of business model and processes to improve productivity and competitiveness.

SkillsFuture Enterprise Credit (SFEC)

SkillsFuture Enterprise Credit (SFEC) covers up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives, over and above the support levels of existing schemes.

There are two types of programmes supported by SFEC:

  • Enterprise Transformation – Initiatives that support development of your business and productivity.
  • Workforce Transformation – Job redesign initiatives, and curated training programmes by SkillsFuture Singapore and Workforce Singapore.

Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) helps businesses enhance their processes with technology.

It provides financial support for business owners to adopt pre-scoped IT solutions, equipment and consultancy services to improve productivity. These solutions are aligned to the industry roadmaps such as the Industry Transformation Maps (ITMs) and Industry Digital Plans (IDPs).

Government Startup Grants - Kickstart Your Journey

Promising startups in Singapore can avail themselves of a suite of attractive government funding support to transform innovative ideas into commercial success stories. Startup SG Founder, Startup SG Tech and Startup SG Accelerator offer holistic assistance across key needs - from prototype development and IP management to talent acquisition and overseas launch. 

Tap into these startup grants to accelerate your firm’s growth trajectory during the critical early stages. Expert guidance can help determine the most suitable option based on your startup’s maturity and funding needs. Whether participating in accelerator programmes for mentorship or claiming generous subsidies for product development and internationalisation, these grants equip startups with rocket fuel to advance to the next stage.

Startup Grants

  • Startup SG Founder
  • Startup SG Tech
  • Startup SG Accelerator

‍Understanding Business Grants for Singapore SMEs

Enterprise Singapore administers multiple business grants Singapore programmes to upgrade SME capabilities, productivity and competitiveness. Whether an early-stage startup availing Singapore startup grants or a growing SME, various funding schemes enable local enterprises to transform.

SME Grants Singapore – Who Qualifies?

While criteria differs across grants, eligible enterprises generally include:

  • Singapore registered entities
  • At least 30% local shareholding
  • Financially stable with positive net worth
  • In operations for one or more years
  • Not convicted of prior criminal offences

Government Funding Support Levels

SME funding Singapore support levels differ based on grant type and applicant size:

  • SMEs - Up to 50% for Enterprise Development Grant (EDG)
  • Startups – Up to 85% through various startup grants
  • Non-SMEs – Up to 50% funding

Top SME Grants in Singapore 2024

Some SME business grants Singapore 2024 offerings to explore:

Enterprise Development Grant

This grant facilitates core capabilities upgrading, innovation pursuits, and overseas expansion, empowering businesses to compete effectively both locally and internationally.

Startup SG Grant

Tailored for early-stage startups, this grant focuses on supporting product development and commercialization efforts, providing crucial assistance during the critical early stages of business growth.

Capability Development Grant

Designed to enhance business capabilities, this grant supports initiatives aimed at upskilling staff and implementing process improvements, fostering organizational growth and productivity.

Market Readiness Assistance

This grant assists businesses in preparing for international market expansion by providing support for branding, IP management, and marketing activities, enabling smoother entry into new markets and maximizing growth opportunities.

How Can an SME Benefit from Government Business Grants?

The Singapore government grants for SME aims to empower local enterprise growth through technology adoption, market access, capability building, R&D and more.

Some potential benefits for SMEs include:
  • Fund business transformation initiatives
  • Pursue overseas expansion with reduced risks
  • Develop novel solutions through R&D and IP protection
  • Drive technology integration and process improvements
  • Enhance talent and organisational capabilities
  • Obtain expert advisory through grant projects

Enterprise Development Grant (EDG) - Fuelling Inclusive Growth

With continued enhancements like the SG SME Grant, Singapore business grants catalyse enterprise innovation and global ambition. Tap available government funding schemes to unlock your firm's true potential. Reach out to experts to determine suitable grants and get application support.

Let’s dive deeper into Enterprise Development Grant (EDG) which can be super supportive to grow and transform your Singapore based company. Due to the broad range developmental areas, the grant supports projects that help you upgrade your business in various areas, to not only compete more effectively locally, but to also venture overseas. It's proven to be the most versatile block of grants in helping some of our clients grow.

Enterprise Development Grant (EDG)

Disclaimer: There are some updates to the subsidy support within some of the grants - effective as of 1st April, 2023

For the Food Services and Retail sectors, the EDG support level will be at up to 80% from 1 April 2022 to 31 March 2023. From 1 April 2023, SMEs can receive up to 50% support for EDG (sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026).

The enhanced grant support levels were extended for a time-limited period given the exceptional disruptions brought about by the COVID-19 pandemic, to encourage the transformation of the economy and to help businesses emerge stronger from the pandemic.

The Enterprise Development Grant (EDG), popularly referred to as “the EDG grant” is a funding scheme that supports the development and transformation of enterprises in Singapore. The grant assists enterprises with their business transformation, internationalisation and capability development initiatives.

There are 3 core areas from which the EDG supports companies.

  • Core Capabilities
  • Innovation and Productivity
  • Market Access
An illustration
Here's an illustration to help you understand better the different types of grants available under the Enterprise Development Grant (EDG)

Watch our walkthrough guide below to understand more about the EDG grants

Learn more about the Grants via the video with our VP of Advanced Services, Dom

Is Your Company Eligible for the EDG?

There are some criteria that your company needs in order to be eligible to receive the grant:

  • That your business has an entity registered and is operating in Singapore.
  • The company has at least 30% local (Singapore) shareholding.
  • Be in a financially stable so to start and complete the project.
    Jump on a call with us for a free consultation, we'll explain further what "financially stable" means then

Just meeting these criteria does not mean that you will receive the grant. Each application will be assessed by Enterprise Singapore based on the project scope, project outcomes and the competency of the chosen service provider.

It’s really important that your company is financially stable, and has a road to growth that looks realistic. The EDG is not designed to fund companies that don’t look viable. Ideally a company has been in business for a few years, has a number of local employees, and has potential to grow even more, not just financially but ideally hire new employees.

If you are a start up that has been around for a year or two and is well funded, and is in a high growth industry, then it is also worth applying.

Is Your Project Eligible?

When applying for a grant for a specific project, that project should be viable for the company, even if you don’t receive the grant. It’s important to note that the EDG only supports new projects that have not been started, and are not generating any revenue at the point of application. This means no payment to a third-party vendor, or even an existing signed contractual agreement to a third-party who is a part of the application.

What Level of Funding Can You Expect to Receive?

EDG provides funding support of up to 70% for Small and Medium Enterprises (SMEs) and up to 50% for Non-SMEs for a wide range of projects. These include projects that facilitate business transformation, adoption of new technology and processes, as well as enhance enterprise capabilities in the areas of human capital, productivity, financial and management control.

How Long Will the Grant Application Process Take?

Your grant application submission will usually take eight to twelve weeks from the time you submit your application, assuming there are no delays, requiring further clarification on certain documents.

Your company will receive a Letter of Offer (LOF) listing the conditions of support and the amount of grant awarded, if you are awarded the grant. It’s important to monitor your email account (and spam folders) for receipt of the Letter of Offer. You will need to acknowledge receipt and accept the LOF within the timeline indicated, otherwise the application would be considered invalid.

When Can You Claim Back Your Money Spent on the Project?

EDG claim submission process

What Documents Do You Need to Submit for the EDG Application?

Once you have confirmed that you are eligible to apply for the EDG grant, you will need to prepare the following  necessary documents for submission.

  • A project proposal in the required format
  • Your company’s latest ACRA information (not more than six months old)
  • Your company’s audited fInancial statements
  • A quotation for the project from the chosen vendor
  • Relevant consultants’ certification

Once you have all the necessary documents prepared, you can submit them via the Business Grants Portal.

Side note: Updates to Enterprise Development Grant (EDG) this 2023

The Enterprise Development Grant (EDG) is a government grant that helps small and medium-sized enterprises (SMEs) in Singapore upgrade, innovate, grow and transform their business. The grant is administered by Enterprise Singapore (ESG).

In 2023, there are a number of updates to the EDG scheme. These updates are designed to make the grant more accessible and beneficial for SMEs.

Highlights of the Updates

  • The EDG scheme has been extended to cover more sectors and activities.
  • The maximum grant quantum has been increased.
  • The application process has been simplified.
  • More support is available for SMEs to use the grant.

Who Can Apply for the EDG?

The EDG is open to all SMEs in Singapore, regardless of their industry or size. However, there are some eligibility criteria that SMEs must meet in order to apply for the grant, typically these criterias are ( but not limited to )

  • The SME must be registered in Singapore.
  • The SME must have been in operation for at least one year.
  • The SME must have a positive net worth.
  • The SME must not have been convicted of any criminal offence in the past three years.

What Can I Use the EDG for?

The EDG can be used to fund a wide range of activities that can help SMEs upgrade, innovate, grow and transform their business. These activities include:

  • Training and upskilling of employees
  • Acquisition of new technologies
  • Market research and business development
  • Export expansion
  • Productivity improvement
  • Environmental sustainability

How Much Can I Get from the EDG?

This is on a case by case basis, we have no affiliation to ESG but from our experience working with our past clients, the average grant quantum for the EDG projects varies from S$50,0000 to S$200,000 per project. The amount of grant that you can receive will depend on the nature and scope of your project. We'd advice you to explore the available EDG grants directly from Enterprise Singapore's main website

How Do I Apply for the EDG?

The application process for the EDG has been simplified. You can now apply for the grant online through the ESG website.

To apply for the EDG, you will need to provide the following information:

  • Your company's name and registration number
  • Your company's contact details
  • The nature of your project
  • The estimated cost of your project
  • The expected benefits of your project

Chat with our team to grab a comprehensive proposal template that our Sales and account team will send over at the end of our discovery call.

What Support is Available for SMEs to Use the EDG?

ESG offers a range of support to help SMEs use the EDG. This support includes:

  • Pre-application advisory
  • Grant writing assistance
  • Post-grant monitoring and evaluation

The EDG is a valuable grant that can help SMEs upgrade, innovate, grow and transform their business. The updates to the EDG scheme in 2023 make the grant more accessible and beneficial for SMEs. If you are an SME in Singapore, I encourage you to apply for the EDG.

How to claim your subsidy upon project completion?

This is an extension of our claim's overview section above - we're adding it in in case you need further clarity on the "Hows"

Below's an illustration for you to understand better. If you'd like to understand further, visit them here.

Support does get rather slow and draggy, if you need your preliminary questions solved. Check in with our team and we'd be more than happy to help you.

An illustration showing the Enterprise Development Grant (EDG) claim process
The Enterprise Development Grant (EDG) claim process

Navigate Your growth trajectory with Devhaus

While there are many grant options and processes to follow in order to get a grant, the outcomes from a grant supported project can provide significant value for companies, considering the amount of value typically generated for the actual dollar outlay by companies.

Do reach out to someone who can support your journey of growth, and have your company and project reviewed to determine which grant would be best for you and how long it would take to deliver.

If you're keen to push the growth of your business further this year in 2024 - jump on a call and we'll tailor the needs of your business for you! Here are the steps:

  1. Submit your enquiry here
  2. Check your email for the call booking link with our team leaders
  3. We'll walk you through our free consultation and even give you a free audit of your current tech stack and website to help you improve your digital performance globally!

Can't wait to catch you then!

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