Small Business Singapore Grants and Why You Need to Apply

Small Business Singapore Grants and Why You Need to Apply

Grants in Singapore for Small and Medium Enterprise (SME) are a great way to kick-start businesses again or keep currently running businesses afloat. 

COVID-19 has caused rising unemployment and consumer spending decline, and with job losses and a decline in consumer spending, businesses have been struggling, and the competition is harder than ever. Over the past few months, a lot of businesses closed down due to difficulty in sustaining their costs.

As COVID-19 cases begin to wane and businesses begin to reopen, they’re going to be needing all the help that they can get. Applying for grants provides businesses with the much-needed leverage they can to sustain themselves.

COVID-19 Supper Measures 

In April, 8,500 businesses closed down in Singapore. More businesses are closing down because of the recession. As a result, Singapore introduced additional support measures to help keep businesses afloat during these times.

Through the S$33 billion Fortiture Budget, Deputy Prime Minister Heng Swee Keat introduced additional support measures. Most of these target SMEs and aim to help them survive COVID-19. The government, alongside Unity, Resilience, and Solidarity Budgets, is allotting S$100 billion.

Why You Need to Apply for Grants Singapore

Owning and managing a business isn’t an easy task, and thank’s to COVID-19, it’s become so much harder. A lot of businesses are closing down, and the remaining businesses around are having a hard time competing with each other because of the decrease in consumer spending.

The SME Grants Singapore is a great way to give your business an edge. There are several grants for specific sectors like the Market Readiness Assistance (MRA) Grant, designed for Small and Medium Enterprises that plan to scale overseas, Specialised Cleaning Programmes, or even Productivity Solutions Grant (PSG) that’s intended for IT solutions and equipment needs. 

Applying for these grants provides you with benefits like support for overseas market set-up, identification of overseas business partners and overseas market promotion, or even up to S$3,000 worth of eligible third-party professional cleaning and disinfection costs. With these in hand, it will be easier to start or reopen your business.

What Do I Apply For Small Business Singapore Grants? 

As of the moment, there are five options for Grants in Singapore for Small and Medium Enterprises (SME).

1. Specialised Cleaning Programme

This program supports Small and Medium Enterprises that have confirmed COVID-19 cases within their premises. The grant defrays 50% of the disinfections costs at a cap of S$3,000 per company.

Criteria for eligibility:

  • Business must be registered/incorporated in Singapore
  • Group Annual Sales Turnover of not more than S$100 million; OR Company’s Group Employment Size of not more than 200 employees
  • At least 30% of local shareholding

Applicants are recommended to refer to the National Environment Agency’s website for a list of eligible cleaning companies that carry out disinfection works.

2. Market Readiness Assistance (MRA) Grant

The MRA grant is a good option for Small and Medium Enterprises (SMEs) that want to take their businesses overseas. Since Singapore is a relatively dense and small country, there might not be as much market as businesses are hoping for, and the MRA helps them achieve their overseas goals.

The grant covers:

  • Overseas market promotion coverage at a cap of S$20,000
  • Overseas business development coverage at a cap of S$50,000
  • Overseas market set-up coverage at a cap of S$30,000

Criteria for eligibility:

  • Business must be registered/incorporated in Singapore
  • At least 30% of local shareholding
  • Newmarket entry criteria, i.e., target overseas country whereby the applicant has not exceeded S$100,000 in overseas sales in each of the last three preceding years
  • Group Annual Sales Turnover of not more than S$100 million; OR Company’s Group Employment Size of not more than 200 employees

3. Land Productivity Grant (LPG)

For businesses reopening businesses, they might want to relocate and look for better and more sustainable areas. The LPG covers part of the initial relocation cost and is one-time contribution support.

The grant covers:

  • Relocation costs (i.e., moving existing plant and machinery to the new site)
  • Manpower cost of the project manager or Singapore-based staff.
  • Third-party consultancy fees for market and location feasibility studies

Accordingly, the Land and Productivity Grant Singapore supports:

  • Domestic Relocation
  • Immediate Region Relocation (Iskandar Malaysia and/or Batam, Bintan, and Karimun in Indonesia)
  • Relocation of existing operations
  • Production model restructuring.

Criteria for eligibility:

  • Business has to be physically present and registered in Singapore
  • Business has to be currently situated on industrial land
  • Company must demonstrate strong linkages from the relocated activities to the activities carried out in Singapore for overseas relocation
  • Business must generate a minimum of 0.1 hectares (ha) of land savings

4. Enterprise Development Grant 

Another great option for the overseas venture is the EDG. This grant helps businesses innovate and strengthen through their three pillars:

  • Core Capabilities
  • Projects under core capabilities help them prepare for growth and improvement by strengthening the business foundations.
  •  Market Access

Criteria for Eligibility:

  • Business must be registered/incorporated in Singapore
  • Be in a financially viable position to start and complete the project
  • At least 30% of local shareholding

5. (ESG) Productivity Solutions Grant

The Productivity Solutions Grant is technology favored and aims to support companies needing a kick-start for IT solutions and equipment that enhance their business. It covers sector-specific solutions like food, retail, construction, and even cross-industry solutions like customer management and data analytics.

Criteria for eligibility:

  • Business must be registered/incorporated in Singapore
  • Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
  • Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees
  • At least 30% of local shareholding

Owning a business has never been harder, and the market has never been more competitive, and now that cutting down costs through Grants Singapore has been made simpler now because of the budget supplements for COVID-19.

With all of these grants readily available for you, there’s no reason why you shouldn’t apply and help ensure that your business is stable and sustainable. 

Don’t take the opportunity for granted. If your business qualifies for a grant, apply now!

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