COVID-19 continues to be a threat to the world’s economy, and Singapore is not an exception. Recently, Enterprise Singapore has announced that their Enterprise Development Grant (EDG) now subsidies up to 90% in response to COVID-19. In this article, we will answer a few common questions related to this grant.
What is Enterprise Development Grant (EDG)?
About Enterprise Singapore (ES)
Enterprise Singapore is a statutory board under the Ministry of Trade and Industry in Singapore. ES was established on 1 April 2018 as a government grant for SME in Singapore to enhance capabilities, innovation, transformation, and internationalisation.
Enterprise Singapore’s Vision
“A vibrant economy with globally competitive Singapore enterprises.”
Enterprise Singapore’s Mission
“Grow stronger Singapore enterprises by building capabilities and accessing global opportunities, thereby creating good jobs for Singaporeans.”
You can find more information about ES on their homepage.
Enterprise Development Grant (EDG)
In short, EDG is a government grant aimed to help Singapore’s local SMEs (Small Medium Enterprises) to grow, innovate, and transform their businesses by providing financial subsidies.
Initially, EDG would only fund up to 70% of your project, but they announced that in 2020, their grant would cover up to 90% of the cost (case by case).
The EDG is surprisingly not that hard to get. Below are a few numbers from ES’s 2019 report to confirm that: There is no denying that EDG is a valuable funding source for your business to grow.
Do your projects qualify for Enterprise Development Grant (EDG)?
First, you have to check if your company is eligible or not. As a government grant, EDG aims to support local Singapore enterprises, so they do require you to:
- Have a registered company and operating in Singapore
- Have at least 30% local shareholding
- Be in a financially viable position to start and complete the project
And then, your project has to fall under one of the following scopes:
- Core Capabilitiesa) Strategic Brand and Marketing Development
b) Business Strategy Development
c) Human Capital Development
d) Service Excellence
e) Financial Management
- Innovation and Productivitya) Process Redesign
b) Product Development
- Market Accessa) Overseas Marketing Presence (OMP)
b) Market Access
c) Pilot Project and Test Bedding
d) Mergers and Acquisitions (M&A)
Based on our experience and other successful applicants, there are a few things you should be noted before applying for EDG:
- The EDG only supports projects that are new and not generating any revenue at the point of the grant application. A project is considered to have begun if suppliers and service providers have already signed a contract, or if any work on the project scope has begun or if payment has been received for the project.
- “Be in a financially viable position to start and complete the project” means that you should have a quite reasonable turnover, and ES does require you to provide your three (3) years audited account.
- From 1 April 2020, your company will have to commit to improving workers’ outcome, such as creating more jobs or increasing wages.
- Company size is not limited. However, usually qualified SMEs have a size of around five (5) employees or above.
How can you apply for EDG?
ES did quite a good job helping applicants going through their process, and I won’t make it more complicated for you with another self-writing guide. You can find ES’s latest guide on how to apply for their grant here.
If you found your company and project can afford the mentioned requirements. The application process should not be too hard.
In case you need help, 100 percent of our client submissions for EDG are approved. So, if you are looking to leveraging technology to innovate your business and would appreciate some government’s financial support, drop us an inquiry, and we will reach out in no time to discuss how we can start your project and win EDG.