Enhancements to Grants and Loan Scheme

In the Ministerial Statement made by DPM Heng Swee Keat on Mon, 5 Oct 2020, he stated that there will be an extended and enhanced support for firms and workers.

Companies looking to grow their businesses, increase productivity or expand overseas will soon be able to tap bigger grants and expanded loan schemes. These moves will provide more support for businesses during the Covid-19 pandemic and help them to transform, Trade and Industry Minister Chan Chun Sing said as he announced the enhancements to several grant and loan schemes on Monday, Oct 12.

Market Readiness Assistance Grant

This grant provides Small and Medium Enterprises (SMEs) with financial assistance to help take your business overseas. You will be rewarded a maximum of 2 MRA grants for each fiscal year. To be eligible for this grant, you need to:

  • Be registered or incorporated in Singapore; 
  • Have at least 30% local shareholder;
  • Have a group annual turnover not exceeding S$100 million per year based on most recent audit report or group employment not exceeding 200 employees.

Current Support Level

Up to 70 per cent of qualifying costs, including identifying business partners and setting up overseas.

New Support Level

Up to 80 per cent of qualifying costs from 1 Nov 2020 to 30 Sept 2021. Will also cover participation in virtual trade fairs from 1 Nov 2020. 

Enterprise Development Grant

The Enterprise Development Grant helps Singapore companies grow and transform. This grant funds qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost. To qualify for this grant, you need to:

  • Be a business entity registered and operating in Singapore
  • Have a minimum of 30% local shareholding
  • Be in a financially viable position to start and complete the project

Current Support Level

Up to 80 per cent of qualifying costs until 31 Dec 2020.

New Support Level

Higher support of up to 80 per cent extended by nine months to 30 Sept 2021, after which it will revert to up to 70 per cent.

Productivity Solutions Grant

The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes.

For a start, PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.

To help enterprise implement COVID-19 business continuity measures, the scope of generic solutions has expanded to include:

  • Online collaboration tools (including laptop-bundled remote working solutions); 
  • Virtual meeting and telephony tools;
  • Queue management systems;
  • Temperature screening solutions

SMEs can apply for PSG if they meet the following criteria:

  • Registered and operating in Singapore
  • Purchase/lease/subscription of the IT solutions of equipment must be used in Singapore
  • Have a minimum of 30% local shareholding; with Company’s group annual sales turnover less than S$100 million, OR less than 200 employers (selected solutions only)

Current Support Level

Up to 80 per cent of qualifying costs until 31 Dec 2020.

New Support Level

Higher support of up to 80 per cent extended by nine months to 30 Sept 2021, after which it will revert to up to 70 per cent.

Temporary Bridging Loan Programme

The Temporary Bridging Loan Programme (TBLP) allows eligible enterprises to borrow up to S$5 million, with a repayment period of up to 5 years.

Under the scheme, interest rates charged by Participating Financial Institutions (PFIs) are capped at a maximum interest rate of 5% per annum. 

To be eligible for TBLP, you need to:

  • Be a business entity that is registered and physically present in Singapore;
  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership

Current Support Level

Loans of up to $5 million, with up to 90 per cent risk-sharing by the Government until 31 March 2021.

New Support Level

Loans of up to $3 million, with up to 70 per cent risk-sharing by the Government from 1 April to 30 Sept 2021.

Enterprise Financing Scheme - Project Loan

This programme helps enterprises finance the fulfillment of secured overseas projects.

The supportable loan types include:

  • Working Capital and Trade Loans
  • Equipment/ Machineries/ Vessels/ Other fixed assets
  • Guarantees

To be eligible for this loan, you are:

  • A Singaporean SME looking to finance the fulfilment of secured overseas projects.

You need to:

  • Be a business entity that is registered and physically present in Singapore.
  • Have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership,
  • Have a Maximum Borrower Group revenue cap of S$500 million for all companies…

Current Support Level

Loans of up to $50 million for secured overseas projects, with at least 50 per cent risk-sharing by the Government.

New Support Level

Expanded to allow construction companies to take up loans of up to $30 million for secured domestic projects, with at least 50 per cent risk-sharing by the Government, starting from 1 Jan 2021.

Enterprise Financing Scheme - Trade Loan

Finance trade needs, including:

  • Inventory / stock financing
  • Structures pre-delivery working capital (revolving working capital)
  • Factoring (with recourse) /bill of  invoice/ AR discounting 
  • Overseas working capital loan
  • Bank Guarantee (capped at 2 years tenure)

Eligibility:

  • Be a business entity that is registered and physically present in Singapore, and
  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and
  • Have Group Annual Sales Turnover of not more than S$500 million

Current Support Level

Loans of up to $10 million, with up to 90 per cent risk-sharing by the Government until 31 March 2021.

New Support Level

Loans of up to $10 million, with up to 70 per cent risk-sharing by the Government from 1 April to 30 Sept 2021.

Government Grants – SkillsFuture Earn and Learn Programme

The SkillsFuture Earn and Learn Programme offers Employers a grant of up to S$15,000 per individual employed under the programe.

Background

The SkillsFuture Earn and Learn Programme is a work-learn programme that gives fresh graduates (within three years of graduation or Operationally Ready Date for National Servicemen) from polytechnics and the Institute of Technical Education (ITE) a head-start in careers related to their discipline of study. It provides them with more opportunities, after graduation, to build on the skills and knowledge they acquired in school, and better supports their transition into the workforce.

Participating employers can recruit local fresh talent, within three years of graduation or the Operationally Ready Date for National Servicemen and prepare them to take up suitable job roles. Participants in the programme can look forward to a structured career progression pathway within the organisation.

Benefits for the Employers

You will be able to groom and retain suitable talent with the relevant skills and aptitude to meet the needs of your company.

You will also receive a grant of up to $15,000 per individual placed in the SkillsFuture Earn and Learn Programme to defray the costs of developing and providing structured on-job-training and to encourage them to set out career progression pathways.

* Terms and Conditions apply

To sign up, please visit ELP portal.

Government Grants – SME Talent Programme (STP)

The SME Talent Programme (STP) offers up to 70% funding support to help you defray the cost of the monthly stipend when you engage students through internships.

Funding
SMEs are eligible for up to 70% funding support to defray the cost of the internship stipend. Here is the minimum amount you should pay interns:

At least S$800 a month for ITE and polytechnic students
At least S$1,000 a month for university students.

Eligibility
SMEs should meet the following criteria:

  • At least 30% local shareholding
  • Group annual turnover of up to S$100 million OR group employment size of up to 200 workers
  • Offer potential career opportunities with a clear job description and career progression path
  • Possess sound Human Resource processes
  • Willing to participate in Enterprise Singapore’s Human Resource Maturity Diagnostics (HRMD) to facilitate future capability upgrading

Apply

Apply Approach the following Approved-in-Principle (AIP) partners to apply for this programme. The STP AIP partners will assess and qualify SMEs, and will play an active role in matching suitable student interns to the participating SMEs. The STP AIP Partners may be contacted for more information about the programme, eligibility and application process.

STP AIP Partner

Email address

Action Community for Entrepreneurship
Association for Small and Medium Enterprises
Restaurant Association of Singapore
Singapore Food Manufacturers’ Association
Singapore Manufacturing Federation
Singapore Retailers Association

Government Grants – Changes to Work-Life Grant (effective from 1 July 2018)

What is WorkPro?
Launched in Mar 2013, WorkPro encourages employers to implement progressive employment practices to benefit Singaporeans through job redesign, age management practices and flexible work arrangements.

Employers can receive the following funding support under the enhanced WorkPro:

  • Age Management Grant
  • Job Redesign Grant
  • Work-Life Grant (effective from 1 July 2018)

NTUC’s Employment and Employability Institute (e2i) and Singapore National Employers Federation (SNEF) are the official Programme Partners appointed to market and administer WorkPro.

Who can register for WorkPro?
Any company registered or incorporated in Singapore including societies and non-profit organisations such as charities and voluntary welfare organisations.

What are the changes?

  • Requiring each company to have just one employee, instead of 20 per cent of all employees, to be on flexible work arrangements to qualify for grant.
  • Funding employers $2,000 per employee over two years, up to 35 employees.
  • To make job sharing a more attractive option, the enhanced Work-Life Grant will provide a higher incentive of $3,500 per employee, instead of the current $2,000.
How to apply?

For more information on WorkPro, employers may contact the Programme Partners. Their contact details are:

SNEF
Website: www.snef.org.sg
Email: workpro@snef.sg

NTUC’s e2i (Employment and Employability Institute)
Website: www.e2i.com.sg
Email: followup@e2i.com.sg

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