The COVID-19 crisis has brought about an unprecedented change for businesses around the world and in Singapore. No other group is feeling this more than our local Small-medium Enterprises (SMEs).
Since the Circuit Breaker measures were announced the Singapore government has doled out SGD$100 billion in funds over four budgets. Most of this has been directed towards sustaining businesses and keeping citizens employed. With SMEs making up the core of the Singaporean economy and many relying on support to transform their business to ensure it continues to thrive post-COVID-19 — it is no wonder that there has been a flurry of grants for SMEs to take up. One such avenue is with Firstcom Ecommerce Web Design where they are a vendor for multiple grants.
However, because many of these grants are organised and coordinated by different government entities, it can be difficult for business owners to know which they should apply for. This article will highlight the most relevant grants for SMEs and what you need to do to qualify.
Digital Resilience Bonus
What is it?
The Digital Resilience Bonus (DRB) enables support for businesses to improve their competitiveness and productivity through digitalisation. Eligible businesses can receive up to S$10,000 if they adopt baseline digital solutions outlined by the scheme. These solutions range from Corporate PayNow to e-invoicing, digitisation of business processes, adopting online channels as well as taking up analytic solutions.
What businesses are eligible?
Businesses with their UEN in the F&B and Retail sectors are eligible as they are most affected by the safe distancing requirements outline in Phase 2 of the Circuit Breaker.
More information is available on the Infocomm Media Development Authority’s website (IMDA) at www.imda.gov.sg/DRBonus#3.
Enterprise Development Grant
The Enterprise Development Grant (EDG) supports Singaporean companies to grow and transform their business through projects designed to aid innovation or venture overseas. Businesses can choose to undertake projects that strengthen their core business capabilities, explore new ways to innovate and improve productivity or expand into overseas markets. The grant covers up to 80% of the cost of qualifying projects. This cost includes everything from consultancy fees to software and equipment, as well as internal manpower costs. The EDG is currently slated to end on 31 Dec 2020.
What businesses are eligible?
Businesses who meet the following criteria can apply for the EDG.
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Registered and operating in Singapore
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Minimum of 30% local shareholding
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Financially viable and able to complete the project
Explore the list of available third-party EDG approved programmes and make an application on Enterprise Singapore’s (ESG) website at www.enterprisesg.gov.sg/financial-assistance/grants/for-local-companies/enterprise-development-grant/overview
Productivity Solutions Grant
The Productivity Solutions Grant (PSG) grants support for sector-specific solutions and lets businesses choose from a range of pre-approved solutions. Businesses can use the PSG grant to cover up to 80% of the costs of readily-adoptable enterprise solutions that range from automation to digitisation and other COVID-19 business continuity tools such as virtual meetings or temperature screening solutions.
What businesses are eligible?
Your business is eligible for the PSG if it meets the following criteria:
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Registered and operating in Singapore
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Minimum of 30% local shareholding
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Looking for Singapore-based IT Solutions
Start-ups which have been operating for less than 6 months may also apply for PSG subject to an assessment by ESG. View the list of PSG pre-approved solutions here or learn more on the ESG website www.enterprisesg.gov.sg/financial-assistance/grants/for-local-companies/productivity-solutions-grant
Market Readiness Assistance Grant
The Market Readiness Assistance (MRA) grant enables SMEs to receive monetary support in order to take their business overseas. SMEs can receive a grant up to 70% of the cost (capped at $100,000 per company per new market) that covers overseas market set-up, promotion or business development.
What businesses are eligible?
The eligibility requirements for the MRA grant are as follows:
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Registered/incorporated business entity in Singapore
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Minimum of 30% local shareholding
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New market entry where the business has not exceeded $100,000 in overseas sales in each of the last three preceding years
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Group annual sales turnover of not more than $100 million or employment size of not more than 200 employees
A list of supportable activities for the grant can be found here. Meanwhile, you can find out more information from ESG’s website www.enterprisesg.gov.sg/financial-assistance/grants/for-local-companies/market-readiness-assistance-grant
There’s no denying that COVID-19 has changed the business landscape and caused a fundamental shift in the way businesses go about their operations. Without the volume and cashflows of MNCs, SMEs are faced with the challenge of quickly adapting to this new landscape or risk losing out. Take advantage of these grants to transform your business and ready it for a new age.
