3 Exclusive SME Grants You May Be Missing Out
The government supports Small and Medium Enterprises (SME). So you should know about the 3 exclusive SME grants you may be missing out on.
The government’s assistance continuously inspires entrepreneurs towards further innovation. Also, various grants are for SMEs using the latest technology.
Automation Support Package
ASP is currently the latest grant introduced by the government for the exclusive SME grants. It encourages business owners into starting utilizing automation solutions through their various business operations.
These services are mechanization of previous manual operations, redesigning existing workflows, and adapting other technology for other activities.
To qualify, the SME must have registration and currently operates in Singapore. Also, it has at least 30% local shareholding.
Under ASP, the entrepreneur can now simultaneously tap on a grant, an allowance and a loan.
Capability Development Grant (CDG)
CDG covers up to 70% of the cost of harnessing automation solutions across existing operations. But this excludes replacing or upgrading equipment that does not keep up with the main purpose of the grant and purchasing new equipment for setting up new operations.
Credit: https://invoiceinterchange.com/wp-content/uploads/2016/04/CDG.jpg
CDG is split through two projects:
- Pilot automation projects include the use of automation solutions for the first time. It includes self-ordering/payment kiosks, robotic arms for operations and mobile ordering applications.
- Full-scale automation projects cover large-scale utilization of automation solutions throughout existing operations. Owners may apply for further financial support of up to 50% of the project. But each project can have a grant of as much as $1 million.
Investment Allowance
SMEs can have as much as 100 per cent Investment Allowance (IA) under ASP to offset taxable income.
Enhanced SME Equipment Loan
The government can grant loans yo to $15 million for automation equipment. However, it only applies if the company qualifies for ASP. While equipment loans can stretch up to 8 years, factory loans can be 10 years.
Enhanced iSPRINT (Increase SME Productivity With Infocomm Adoption & Transformation)
Since March 2010, iSPRINT has been for SMEs to inspire business automation. It aids towards increased productivity and growth.
For you to qualify, the business must have a registration and run in Singapore with at least 30% local shareholding. Also, it has 200 or fewer employees with group annual sales turnover not exceeding $100 million.
Enhanced iSPRINT covers Four Solutions:
Packaged Solutions
- Intermediate Solutions
SMEs who want to install ready-to-use solutions included in a pre-qualified list can receive up to 70% of the cost. But the grant will not exceed $20,000 per solution.
In addition, you gain 1-year support if the chosen solution is subscription-based.
- Sector Solution
SMEs who want to install proven sector-specific solutions selected from a pre-qualified list will receive up to 70% funding. The subscription-based solution is eligible for two-year support.
After that, the SME will have to pay the vendor 30% upfront, and the Info-communications Development Authority (IDA) will reimburse the cost directly.
- Connect-up Option
SMEs can install high-speed connectivity to support chosen technology solutions from the pre-qualified list.
The exclusive SME grants will subsidize the recurrent cost of the fibre subscription of up to 24 months at 50%, not exceeding $120/month.
Should the SME choose the Wireless@SG equipment, 50% will be under its subsidy. But it must not exceed $2,400.
It is suitable for SMEs which require a high-speed connection in the public business area.
Customized Solutions
As the name suggests, an SME may choose a modified solution not included on the lists. First, however, make sure that the project has not started before you process your application in IDA.
Remember, it must do all proposal projects locally.
Piloting New Sector Solutions
If you are an innovative vendor who wants to develop a new sector-specific solution, then you can qualify for a grant up to 80% but not exceeding $1 million.
The SME must pay the 20% cost upfront, and the IDA will reimburse the fee directly.
Scaling Up Proven Sector Solutions
The proven sector-specific solutions can upscale to pre-qualified Package Solutions with the subsidized support of up to 70%. Meanwhile, the 30% payment is necessary for the upfront by the SME.
Business Improvement Fund (BIF)
BIF development encourages SMEs to create and use various technologies towards a reformed business structure that will optimize customers’ experience.
Moreover, with increased competition among SMEs in tourism, it is worthy for various companies to think up unique solutions to keep their clientele growing.
To qualify for the BIP, the SME must be directly in the tourism sector or a technology company that develops services and products for tourism.
In addition, the proposed projects must ultimately support enhancing tourism in Singapore, involving product development, business processes, financial management, marketing, or superior quality service.
It is applicable for an SME with a proposed project towards developing better tourism in part or across the island. Also, it has an entitlement to a fund of as much as 70% of the qualifying costs. The qualifying costs has a relation to various company operations.
These are staff training, product developments, computer system redesigning, added internal manpower fees and fare related to the project.
If you are an SME making tourism souvenirs or a resort owner, you can qualify for the funding.
However, despite preparing the requirements to get the above exclusive SME grants, you are still subject to the respective government department’s scrutiny.
Non-SME Support
Even non-SME can have funding support of up to the 50% of the total qualifying cost. However, it must justify expenses with the proper documentation.
Marketing, maintenance, packaged solutions and hardware and software costs unrelated to tourism development are not part of the BIF coverage.
If you have a business break that is hard to pass up and the grant process takes so long, you can process a business loan anytime with Cash Mart.
Singapore licensed money lender Cash Mart offers flexible loan solutions you can process in just 30 minutes. So give Cash Mart a call now and wait no more.