SME Grants: Guide on the Best Ones Available
Small and Medium Enterprises (SMEs) in Singapore contribute greatly to Singapore’s economy as they constitute 99% of the companies here and are responsible for hiring more than 70% of the entire workforce. The government recognises this significant contribution by SMEs in Singapore by distributing SME grants to successful applicants. According to a Straits Times article, it was reported that these grants and other financing incentives accumulated to almost $30 billion from 2019 to 2022.
Receiving assistance through business grants is crucial for SMEs in Singapore as it adds to the working capital of your business. Furthermore, Singapore SME grants also finance areas such as operating costs, expansion plans, technological adoptions, and overall business sustainability. Business owners often look to additional funding sources such as bank loans or private lenders such as Poss Capital after these SME grants are deemed to be insufficient to sustain their businesses.
However, with a plethora of Singapore business grants offered by multiple agency bodies, it may be confusing for you to determine which grants best suit your business needs. Thus, this guide aims to help potential and existing SMEs in Singapore by providing a condensed list of SME grants available, to facilitate easier selection of the most suitable grants for your business. Various Singapore startup grants available have also been listed for Singapore startups.
Do You Qualify As An SME In Singapore?
Before deciding which Singapore small business grant best suits your business, you should first determine if your business is eligible to be considered an SME in Singapore. Different grants may have different definitions of what constitutes an eligible business. However, generally, you will need to fulfill the following requirements:
- Registered and operating in Singapore;
- Local shareholding of minimum 30%; AND
- Maximum of $100 million for your group’s annual sales OR have a maximum of 200 employees as your group’s employment size.
If you have yet to officially incorporate your business, these requirements provide a good reference on how you might want to structure your business. Additionally, if you are unsure about where or how to begin your business journey, check out our previous article for a roadmap to fulfill your dream of starting your very own business.
List Of SME Grants & Singapore Startup Grants Available
After determining that your business qualifies or would qualify to be an SME in Singapore, the table below provides a non-exhaustive list of Singapore SME grants that you might consider applying for:
| SME GRANTS | |||
| Name Of Grant | Value | Purpose | Key Additional Conditions (Non-Exhaustive) |
| Enterprise Development Grant (EDG) | Up to 50% of eligible costs |
Help businesses to upgrade, innovate or venture overseas. |
– Business is financially able to commence and complete the project; – The project must be from the approved categories. |
| Productivity Solutions Grant (PSG) | Up to 50% of eligible costs capped @ $30,000 |
Help businesses adopt IT solutions, equipment, and consultancy services to boost productivity. |
– IT solutions must be from the pre-approved list and must be used locally. |
| SkillsFuture Work-Study Programmes (WSPs) | Up to $15,000 per trainee |
Allows businesses to groom and retain talents with relevant skills and aptitude. |
– Business must be committed to providing structured training and opportunities for career advancement. |
| Start Digital | Fee waiver for minimum of 6 months |
Help businesses build foundational digital capabilities with easy-to-deploy solutions. |
– First-time applicants only; – Have not used similar solutions before. |
| Operation & Technology Roadmap (OTR) | Phase 1: $7,200 Phase 1 & 2: $18,000 |
Help businesses develop a technology roadmap for long-term growth. |
– Phase 1 involves a 5 half-day workshop to discover new outlooks on the business environment of your industry. |
| Technology For Enterprise Capability Upgrading (T-Up) | Up to 70% of eligible costs capped @ $250,000 |
Aid innovation in business processes and assist in developing innovative products. |
– Involve A*STAR researchers in R&D for up to 2 years; – Must be able to finance and complete the project. |
| Local Enterprise & Association Development (LEAD) Program | Up to 70% of eligible costs |
Help to transform and upgrade industries, and facilitate internationalisation |
– Open only to trade associations and chambers; – Must represent a key industry and have a sizeable membership. |
| Grow Digital | Fee waiver of up to 70% (excluded from PSG fund use) |
Help expand businesses through e-commerce platforms, both locally and overseas. |
– No additional conditions except to qualify as a SME in Singapore. |
If your business falls under the startup category instead, the table below shows a list of Singapore startup grants available to you:
| SINGAPORE STARTUP GRANTS | |||
| Name Of Grant | Value | Purpose | Key Additional Conditions (Non-Exhaustive) |
| Startup SG Founder | Capped @ $50,000 | Encourages aspiring first-time entrepreneurs to start businesses, by providing mentorship and financial support. |
– Less than 6 months into registration as a Private Limited entity; – Not receiving funds from any other government organisation; – Commit to co-matching amount of $20,000. |
| StartupSG Tech | Proof-of-Concept: Capped @ $250,000 Proof-of-Value: Capped @ $500,000 |
Supports businesses in commercialising innovative proprietary technologies. |
– Open only to Private Limited entities; – Registered within the past 10 years at the time of application; – Grants Enterprise Singapore the right to exercise a share subscription. |
It is important that you perform due diligence before applying for these Singapore small business grants as the list above is a non-exhaustive guide. You should refer to the various links for more information.
The GoBusiness website has a complete list of relevant information on SME grants and Singapore startup grants available, while the eligibility criteria for Singapore SME grants may be found on the Enterprise Singapore website. Other government agencies such as the Economic Development Board (EDB) and Singapore Tourism Board (STB) may also have schemes that your business might find helpful.
Alternative Or Supplementary Solutions To Singapore SME Grants
In addition to Singapore business grants such as the PSG and EDG grants, the government also provides businesses with other forms of assistance.
SkillsFuture credits allow businesses to invest in their workforce while the GeBIZ website provides another revenue-generating avenue through bidding for procurement opportunities from different government agencies. However, some businesses may still find it tough to keep up with the financial demands especially if they wish to take on these procurement opportunities without receiving government grants for Singapore companies. It also does not help that the increasing costs and projected rise in inflation may add to their financial burden.
Taking up bank loans to supplement the assistance from various government agencies such as EDB, STB, SkillsFuture, and GeBIZ as an alternative working capital financing source is one possible solution. However, the successful bank business loan application depends on your business’ credit score and reliability as banks have more stringent lending processes. This results in some businesses failing to secure loans entirely or to obtain affordable interest rates. Hence, it is crucial to make an informed decision on whether your business is prepared for the high interest repayments that these bank loans may carry.
To learn more about the factors to consider when choosing between the bank loans available in Singapore, check out our previous article before making your decision.
Work With A Flexible & Transparent Private Lender
We understand that SMEs in Singapore may face financial challenges in maintaining or growing, thus we help bridge this gap by offering flexible and transparent solutions, up to S$100,000.
Pay only for what you use with no early repayment penalties.
Apply TodayFAQs on SME Grants in Singapore
To qualify for most grants, your business must:
- Be registered and operating in Singapore
- Have at least 30% local shareholding
- Either have a group's annual sales of less than $100 million or no more than 200 employees
Certain grants may have additional or more specific conditions, so do review the guidelines for each grant.
Some key SME grants include:
- Enterprise Development Grant (EDG): Supports upgrading, innovation or overseas expansion efforts.
- Productivity Solutions Grant (PSG): Helps adopt IT Solutions and equipment to boost productivity.
- SkillsFuture Work-Study Programmes (WSPs): Provides businesses with talent development opportunities.
These grants offer funding for operating costs, technological adoption and business expansion.
Two startup grants include:
- Startup SG Founder: Offers mentorship and financial support, capped at S$50,000, to encourage entrepreneurship.
- Startup SG Tech: Provides up to S$500,000 for commercialising proprietary technologies. These grants are aimed at first-time entrepreneurs and tech startups looking to establish themselves in Singapore.
- Confirm if your business meets the eligibility criteria for the specific grant.
- Identify your business needs - such as productivity enhancement, expansion or workforce development.
- Check for any additional conditions such as first-time applicants only or specific project categories.
Further reading on government resources such as GoBusiness or Enterprise Singapore can help guide your decision.
If grants do not cover your business's financial needs, other options include:
- Bank Loans: These can provide additional working capital, but stringent criteria and long application process may mean you can't access funds in time.
- Private Lenders (e.g. Poss Capital): Offer more flexible financing with features such as prorated interest payments and no prepayment penalties.
Consider alternatives to ensure your business maintains cash flow and growth momentum.
