AVAILING GOVERNMENT GRANTS
Singapore is a business friendly region due to the grants and incentives provided by the Government. addition of several new grants and the expansion of existing ones to improve the capabilities, manpower and internationalization efforts of businesses in Singapore. The new and expanded grants are more targeted towards specific needs of Singapore businesses.
Productivity Solutions Grant (PSG)
It was established to encourage the adoption of digital productivity solutions among Singapore businesses. Currently, the PSG funds up to 70% of the costs. The PSG supports smaller Singapore businesses and SMEs by making funding and support more readily available to them,
Enterprise Development Grant (EDG)
Enterprise Development Grant (EDG) aims to support Singapore businesses in three key areas:
- Market and business development
- Innovation and productivity
- Core functions and capability
The EDG grant helps both new set ups and established set ups can use this grant for expansion
The main aim was to enhance mutually beneficial collaborations between large multinationals and local enterprises with SMEs. Smaller companies can benefit from the network and experience of larger companies, while larger enterprises can benefit from the nimbleness and agility of smaller businesses.
Double Tax Deduction for Internationalisation
DTDi) initiative was established to encourage Singapore businesses to embark on international expansion and internationalisation. the new clearance limit of S$150,000 for eligible expenses enables Singapore businesses to reduce their tax burdens and have more money on hand, and more time, to engage in higher value internationalisation and expansion activities.
Market Readiness Assistance (MRA) Grant
the Market Readiness Assistance (MRA) grant was established to help Singapore SMEs access overseas opportunities. The expanded MRA grant makes it easier for Singapore businesses to establish physical branches and conduct market research in the countries they are expanding to, as well as take advantage of digital business promotional channels, which typically incur high costs.
Venture Debt Programme
The VDP was structured with small Singapore businesses in mind: to be eligible for the loan Venture Debt Programme (VDP), enabled SMEs with high-growth potential to access loans up to S$5 million for working capital, asset financing, project financing and mergers & acquisitions purposes. The VDP helps Singapore businesses access sources of capital quickly to set up and expand their business
How do you get a grant to start a business?
There are grants for startups but they’re not going to fund your whole business. They might cover the costs of getting professional advice to create a business or financial plan, specific training, or investment in equipment. Grants for research and development (R&D) are more plentiful, especially for innovative products and processes. These grants can help you plan, develop, test and refine your idea
Grants can be targeted and have restrictions. The money might only be able to be spent on specific things, or in certain places. For example:
- you might have to do some type of orientation or training before you can access the funds
- they might have a time limit, such as having to do your R&D within 12 months
- you may need to put up an equivalent amount or combine it with additional funding
- you may have to justify what you’ve done with the grant, or share results if, for example, you used the money for R&D
How to apply for a small business grant
Be prepared to put in some serious time on the application. So read up about what’s required from you before you commit. Check the time frame: how long will it take to apply and get an answer? Can you wait that long or is another source of funding a better idea?
Before you dive into putting together an application for a grant, it is a good idea to make sure you are even eligible to receive one. As a small business applying for a federal grant, you must meet specific qualifications in order to apply.
Do your homework as to why the grant was created and its purpose. Your application should show how your business fits the aims of the grant and how the grant will help your business
Expect to provide information on yourself as well as your product or service, your market demographics, and how you plan to spend the grant. This may involve charts, graphs, and budgets.
When it comes time to submit your grant proposal be sure it is on time. Follow all the submission guidelines including the requested formatting and length. If you are including supporting materials, arrange them in an index at the end of the proposal.
Grants are essentially free money – you don’t have to pay them back. Their aim is to give small businesses a helping hand. They’re often targeted at job creation, projects that traditional lenders don’t support, and on increasing economic benefits for communities.