Singapore’s economy recognizes the importance of Small and Medium-Sized Enterprises, which constitutes 99% of all enterprises in Singapore. This translates to approximately seven out of every ten workers, contributing to around half of Singapore’s Gross Domestic Product (GDP).
Singapore like many countries is hit hard by the COVID-19 pandemic with the retail/F&B sector bearing the heaviest blow. There are multiple grants offered by the Singapore government to cushion the negative effects of pandemic and aid recovery. If you’re checking out other SME Singapore loans beyond the solutions offered by top providers like DBS, check out the following:
Global Ready Talent (GRT). For Singaporean enterprises looking to target overseas and need talent to continue. This program helps build a pipeline of global-ready talent for enterprises by exposing more Singaporeans to overseas and internship work opportunities.
The program has two key components, including local and overseas internships and management associate program. GRT allows student internships and/or management associate program for up to 70% funding support on qualifying costs.
P-Max. This place-and-train program assists in placing job-seeking professionals, managers, executives and technicians (PMETs) into appropriate SME jobs. There is 90% funding support from Workforce Singapore (WSG). As requirement, SMEs will only need to pay the 10% net course fees for the respective PMETs and SME workshops.
SMEs will receive a one-time $5,000 Assistance Grant after successful retention of their newly-hired PMETs for not less than six months after completing SME and PMET workshops under the program.
Productivity Solutions Grant (PSG). This supports companies who are keen on adopting IT solutions and equipment to boost business processes. As announced in Supplementary Budget 2020, the PSG will give subsidies of up to 80% for SMEs that adopt digital solutions pre-approved by the Infocomm Media Development Authority (IMDA).
The criteria are that the business must be registered and operating in Singapore and purchase, lease, subscription of the IT solutions or equipment needs to be used in Singapore. It should have a minimum of 30% local shareholding with Company’s Group annual sales turnover less than S$100 million, or less than 200 employers.
Digital Resilience Bonus (DRB). DRB aims to boost the digital capabilities of enterprises. DRB is meant for Food Services and Retail sectors, which is affected by safe distancing requirements as the economy reopens post COVID-19.
Retail shops and food services that offer PayNow Corporate, e-invoicing, and use pre-defined categories of digital solutions for business processes, data mining, digital presence, and analytics can get bonus payouts of up to $10,000.
To qualify, the enterprise must be incorporated on or before 26 May 2020 with a Food Service or Retail SSIC code using the digital solutions between 1 June 2020 and 30 June 2021. It is best to understand the needs of your business before proceeding.
E-commerce booster package. This program is administered by Enterprise Singapore (ESG) to support retail businesses in diversifying and look for ways to reach customers by going online. This program comprises e-commerce for the domestic market, e-commerce for overseas markets, and digital marketing capabilities for retailers.
Of course, there are others besides what’s in this list. However, these should serve as primary programs to get most SMEs started. As always you can rely on SME loan provided by trusted lenders in Singapore like DBS, which offers 11 tailor-made loan solutions for SMEs. They have an online application that you can complete within 5-minutes.
Research strategically before committing to any program or loan. This will let you maximize your grant or loan.