The Ultimate Guide to SME Grants in SG (incl. COVID-19 support!)Download Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
As we enter yet another round of restrictions, local small-medium enterprises (SMEs) are going to need extra help to hold on. This isn’t news, but the concurrent transition from pandemic to endemic mode is likely to put an extra strain on businesses, which is why SMEs need to fully utilise government support.
Here’s our comprehensive, industry-specific list of the SME grants and COVID-19 relief measures available for SMEs:
Grants for all industries
1. Productivity Solutions Grant (PSG)
This aids SMEs in adopting long-term high-tech solutions that will boost productivity. It is perfect for companies that are looking into digital transformation with the automation, or even elimination of certain processes.
PSG covers solutions across many industries, including retail, food, logistics, precision engineering, construction and landscaping sectors. It also supports the adoption of solutions across customer management, data analytics, financial management and inventory tracking.
2. Enterprise Development Grant (EDG)
The EDG is designed to help SMEs develop internal capabilities in these 3 main areas that are made up of relevant sub-areas:
- Core Capabilities, which includes Strategic Brand & Marketing, Business Strategy, Human Capital, Service Excellence and Financial Management
- Innovation and Productivity, which includes Product Development, Process Redesign and Automation
- Market Access, which includes Pilot Project & Test Bedding, Overseas Marketing Presence, Mergers & Acquisitions and Standards Adoption
3. Market Readiness Assistance Grant (MRA)
The MRA Grant funds companies planning to bring their business overseas. The costs are broken down into overseas market promotion (capped at S$20,000), overseas business development (capped at S$50,000) and overseas market setup (capped at S$30,000).
4. New COVID-19 relief measures
Keeping daily operations up and running during the second wave can be daunting, but the COVID-19 relief measures announced in Budget 2021 (that cost the government $800 million) should help SMEs cut costs in terms of wages and rental.
The Jobs Support Scheme (JSS) is getting kicked up a notch. If you’re registered under the JSS, expect increased support until 16 June 2021.
Rental relief or cash payouts will be given to SMEs with an annual revenue below $100 million, based on a new Rental Support Scheme. Details of the scheme will be provided in June 2021.
Property owners who run an SME on their own commercial property can also collect the cash payout, computed based on the Annual Value of the property for 2021.
Grants for Food Services & Retail Industries
1. Digital Resilience Bonus (DRB)
Our retail and F&B sectors suffer whenever social distancing measures are announced. The DRB funds restaurants and shops that are incorporated before or on 26 May 2020 and employ digital solutions like PayNow Corporate and e-invoicing between 1 June 2020 and 30 June 2021. Other digital solutions used for Business Processes, Digital Presence and Data Mining & Analytics are eligible too.
Grants for the Finance Industry
1. Financial Sector Technology and Innovation Scheme
With the aim of creating a vibrant ecosystem for innovation in the finance sector, the FSTI funds the local development of innovative solutions and implementation of industry-wide technology infrastructure for SMEs.
2. FSTI-Proof of Concept (POC) Grant
For finance SMEs getting their hands dirty with innovative solutions, the POC scheme under FSTI will get you extra funding, right from the early stages. This is applicable for projects investigating a fresh approach to resolving business use-case problems, using technology or business processes.
3. Digital Acceleration Grant
This SME grant is another facet of the FSTI Scheme, only open to local financial institutions and Fintech firms with under 200 employees. The grant aims to co-fund the adoption of eligible digital solutions in the finance sector.
Grants for Applied Sciences Industries
1. Marine and Process Support Package
This sector-specific package addresses two issues.
The Marine and Process Safe Restart Package keeps workers safe from COVID-19 exposure in the short-term. This protects the wellbeing of the workforce and safety of the worksite.
The Marine and Process sector relies heavily on manual work processes and large quantities of manpower. The Productive Safe Restart Scheme (PSRS) helps SMEs in the industry stay competitive in the long run with transformation models and technological solutions.
1. Startup SG Equity
This scheme intends to trigger greater private sector investments into local tech startups with intellectual property and global market potential. This will be done via domino effect - the government co-invests with select venture capitals, these venture capitals provide greater funding for SMEs.
While Startup SG Equity applies to all tech and deep tech firms, there is a primary investment focus on the Advanced Manufacturing and Engineering, Medtech, Biomedical Science and Agri-food tech sectors.
Am I Eligible to Receive a SME Grant?
Government grants are still centered on general monetary relief, but there is an increasing focus on cultivating industry-specific solutions. Whether you’re looking for short-term relief or long-term sustainability, there is definitely an SME grant in Singapore that you can apply for. Good luck!