The Singapore government provides the Enterprise Development Grant (EDG) to support local businesses that are looking to upgrade, expand, or experiment with something new. The EDG Grant Singapore is a sustainable program overseen by Enterprise Singapore, a government agency that helps companies grow and develop.
The idea behind EDG is to help companies establish themselves and test their capabilities in different areas. The grant focuses on innovation, internationalization, and productivity and provides financial support that covers project cost, consultancy fee, capability development and technology adoption.
This post will look into several aspects of EDG Singapore to understand how it helps businesses and how companies can apply for the grants.
Which Projects Does EDG Support?
The EDG grant, just like other government grants, follows a strict set of rules to ensure only the deserving companies and businesses receive the financial support. To avail the EDG Singapore, businesses must fulfill the project criteria that is built on the following three pillars.
Projects that help businesses to build stronger internal functions like optimizing processes, and adding technologies are likely to receive the EDG grant. If a project can enhance the functionality and overall performance, it’s a good candidate for receiving the funding.
Productivity and Innovation
Project initiatives that focus on development, research and innovation are also likely to receive the fundings. Businesses looking to enhance their product base, or services by adding new elements are highly eligible for the EDG grant Singapore.
Projects which help businesses expand into overseas markets are also eligible for the EDG grant. These projects may also include market assessment, internationalization efforts, and market entry efforts.
How Much Can the EDG Grant Singapore Fund?
The business funding varies according to the type of business and the set goals. However, most businesses can avail a maximum of 50% funding. However, if the business involves sustainability projects, it can receive up to 70% fundings.
Is There an Exact Number for the Maximum Grant?
There is no specific number as to how much you can receive in an enterprise Singapore grant. It typically depends on the project scope and has a correlation with the company size, manpower, and turnover. So, there is no definite answer about how much you can receive in a Singapore EDG grant.
What is the Eligibility Criteria for the Singapore EDG Grant?
To become eligible for the Singapore EDG grant, you must fulfill the following criteria.
- Have a registered business operating in Singapore
- The company must have at least 30% of local shareholding
- The company must be financially competent to start and finish the project.
Financial Viability for EDG Grant Singapore
By being financially viable to start and complete a project, it means that the company must have had a reasonable turnover in the previous three years. That’s why it’s essential for businesses to submit a 3-year account audit while applying for the grant.
Moreover, if the company is a larger organization, it is important that the organization must have less than $100 million revenue and there should be less than 200 employees in the company.
Are There any Minimum Requirements for Singapore EDG Grant?
The enterprise Singapore grant has a couple of minimum criteria for businesses to apply for the grant. The requirements relate to the turnover and number of employees. Typically, the turnover should be at least $400k.If the turnover is close to or more than $1 million, it’s ideal for receiving the grant. Moreover, there shouldn’t be zero or just one employee or project member.
Typically, five project members and they shouldn’t be the directors, owners, or partners of the company. It also depends on the company size as it should be justifiable in relation to the project sum.
What are the Top Benefits of Acquiring the Singapore EDG Grant?
Here are the top benefits of Singapore EDG Grants.
Financial Assistance for Various Expenditures
The EDG provides financial assistance to cover approved project expenses, taking care of expenditures like third-party consultancy fees, software and equipment, and internal staffing costs.
Support for Local and Medium Sized Businesses
The grant is mainly suited for local small and medium-sized enterprises (SMEs) that are eligible for up to 50% funding support for qualifying expenses under the EDG program. It’s noteworthy that, effective April 1, 2023, projects focused on sustainability might receive elevated backing, potentially reaching up to 70% support until March 31, 2026.
Promoting Environmental Friendly Practices
The special addition of funding for sustainability-related projects also highlights the government’s dedication to encouraging environmentally conscious practices and motivating businesses to embrace eco-friendly initiatives.
SMEs Can Expand Beyond Borders
By subsidizing a substantial portion of project outlays, the EDG also empowers SMEs to invest in their expansion, innovation, and market outreach, enhancing their competitive standing within the dynamic business realm.
How Can Businesses Apply for EDG Grant Singapore?
Applying for the Enterprise Development Grant (EDG) involves multiple steps to access financial support for business growth initiatives. Here is an overview of the application process.
Check Your Eligibility
Ensure your business meets the eligibility criteria, which typically includes being a registered entity in Singapore and having viable growth plans.
Determine the specific project you want to pursue, whether it’s related to core capabilities enhancement, innovation, productivity, or market expansion.
Preparation of Project Details
Gather all the essential details about your project. It can include your project details, cost estimates, and required supporting documents.
Visit the official Enterprise Singapore website and complete the online application form. Provide accurate information about your business, the project’s scope, expected outcomes, and projected expenses.
Submit the Documents
Upload all necessary documents, such as business registration details, project proposal, and budget breakdown.
Review and Approval
Enterprise Singapore reviews your application, assessing its feasibility, alignment with grant objectives, and potential impact.
You’ll receive notification of the outcome. If approved, you’ll be informed of the grant amount and any conditions.
Upon approval, implement the project according to the proposed plan and budget.
After project completion, submit necessary documents and claims for reimbursement of eligible expenses.
Some projects may require post-project evaluation to assess outcomes and benefits achieved.
Receiving the EDG Grant Singapore can help businesses elevate and expand across borders. It’s a healthy initiative by the Singapore government that enables the SMEs to establish in a competitive market that is usually dominated by giant companies.