The Singapore government has recently announced the Solidarity budget 2020. As part of the pandemic recovery plan, new SME grants and financial support are introduced, as well as existing ones have been extended.
The Enhanced Enterprise Financing Scheme SME Working Capital loan was announced as part of the Solidarity budget 2020. The scheme is managed under EnterpriseSG and aims to help SMEs with their working capital needs. The maximum loan quantum is S$1 million per borrower with a maximum repayment period of 5 years. The Singapore government risk shares 90% of the loan amount per borrower.
It is important to note that the borrower is still responsible for repaying 100% of the loan value. However, in the event of default where the Participating Financial Institution (PFI) has exhausted all debt collection methods (including dispose of valuable assets, lawsuit, filing for bankruptcy), the PFIs will be able to claim the defaulted amount from EnterpriseSG.
EDG aims to support Singapore businesses growth and transformation under the following categories:
#1 Core Capabilities – Helping businesses prepare for growth (does not include fundamental processes such as sales and accounting).
#2 Innovation and Productivity – Helping businesses explore new areas for growth or to increase operational efficiency through innovation.
#3 Market Access – Helping businesses explore new markets.
The EDG grant reimburses qualifying project costs namely third-party consultancy fees, software and equipment, and internal manpower costs. As part of the Supplementary Budget 2020, the funding cap was raised to 80% from 1 April 2020 to 30 September 2021.
Check out EnterpriseSG for other SME grants.
The aim of PSG is to help increase productivity by supporting the adoption of technology solutions (either software or hardware) to automate an existing process. As part of the Government’s fight against the economic effects of the pandemic, the generic solution’s scope now includes:
The funding cap has increased to 80% from 1 April 2020 to 30 September 2021 as part of the Supplementary Budget 2020.
Please submit your application through the Business Grants Portal. Please check out other available SME grants on the portal as well.
If you are thinking about expanding your business overseas, then look into the MRA grant. It offers SMEs up to 70% of eligible costs, capped at S$100,000 per company per new market from 1 April 2020 to 31 March 2023 covering:
The definition of a new market is “a target overseas country whereby the applicant company has not exceeded S$100,000 in overseas sales in each of the last three preceding years”. Please note that each application is limited to one activity in a single overseas market.
Please submit your application through the Business Grants Portal.
The Singapore government will be co-funding 20% of wage increases for businesses in 2020. The qualifying gross wage ceiling is also raised to S$5,000.
All employers giving wage increases in 2013 – 2020 to Singapore Citizen employees who:
For further details, please visit the IRAS website.
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