Singapore Government Financing Schemes: A Guide for Businesses

Singapore has long been recognized as a global hub for business and innovation. To support entrepreneurship and drive economic growth, the Singapore government offers a range of financing schemes designed to assist businesses of all sizes. Whether you are a start-up, an SME, or a large corporation, understanding these schemes can provide crucial financial support and accelerate your growth. This guide explores the most popular government financing schemes in Singapore and how Apexia Corporate Advisory can help you navigate the application process.

Why Leverage Singapore Government Financing Schemes?

Government financing schemes in Singapore offer businesses access to funding with competitive terms. Key benefits include:

1. Lower Financial Risks: Many schemes provide co-funding or risk-sharing mechanisms, reducing the financial burden on businesses.
2. Support for Innovation: Dedicated grants and schemes promote innovation, research, and development.
3. Access to Markets: Funding options help businesses expand regionally and globally.
4. Cash Flow Management: Short-term financing options help SMEs manage operational costs effectively.

Popular Singapore Government Financing Schemes

1. Enterprise Financing Scheme (EFS)

The Enterprise Financing Scheme (EFS) consolidates several existing loan programs into a comprehensive solution for businesses at various growth stages. Managed by Enterprise Singapore, the EFS covers:

Types of Loans Available:

• SME Working Capital Loan: Provides up to S$500,000 for daily operational needs.
• SME Fixed Assets Loan: Offers up to S$10 million for asset purchases, such as machinery or property.
• Venture Debt Loan: Designed for high-growth start-ups with scalable business models.

Eligibility Criteria:

• Registered and operating in Singapore.
• At least 30% local shareholding.
• Group annual revenue of up to S$500 million.

2. Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) supports businesses adopting IT solutions and equipment to enhance productivity.

Funding Amount:

• Up to 80% of qualifying costs.

Key Sectors Covered:

• Retail
• F&B
• Logistics
• Professional services

How to Apply:

• Identify pre-approved solutions on the GoBusiness PSG Portal.
• Submit your application with required documents.

3. Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) supports businesses in transforming and expanding their operations locally and internationally.

Funding Focus Areas:

• Core Capabilities: Strengthen internal processes such as HR or financial management.
• Innovation and Productivity: Encourage innovation and process improvements.
• Market Access: Support overseas expansion and market development.

Funding Amount:

• Covers up to 80% of project costs for eligible businesses.

4. Start-up SG Equity

This scheme helps start-ups secure early-stage funding through government co-investment with private investors.

Who is it for?

• Innovative, high-growth start-ups in industries such as deep tech, fintech, and health tech.

Funding Details:

• The government co-invests alongside selected private investors.
• Co-investment ratio and cap depend on the start-up's sector and growth stage.

5. Market Readiness Assistance (MRA) Grant

The MRA Grant helps SMEs expand into international markets by supporting activities such as market research, business matching, and overseas marketing.

Funding Amount:

• Up to 70% of qualifying costs, capped at S$100,000 per company per new market.

6. SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit (SFEC) incentivizes businesses to invest in enterprise transformation and workforce development.

Funding Amount:

• Up to S$10,000 per company, covering 90% of out-of-pocket expenses for eligible programs.

Eligibility Criteria:

• Must have contributed to the Skills Development Levy.
• Employ at least three local employees.

How to Choose the Right Scheme

When selecting a government financing scheme, consider the following:

1. Business Needs: Identify whether you need funding for operations, expansion, or innovation.
2. Eligibility Requirements: Check if your business meets the scheme's criteria.
3. Industry Focus: Some schemes are tailored to specific sectors.
4. Long-Term Goals: Align the scheme's benefits with your business's strategic objectives.

Why Engage Apexia Corporate Advisory?

Navigating the various government financing schemes can be complex. Apexia Corporate Advisory provides end-to-end support to help you maximize the benefits of these schemes:

1. Eligibility Assessment:
   • Evaluate your business's eligibility for different schemes.
2. Application Assistance:
   • Prepare and submit high-quality applications with the required documentation.
3. Grant Management:
   • Ensure compliance with grant terms and conditions.
   • Provide progress updates and reporting support.
4. Business Strategy Alignment:
   • Align financing solutions with your business growth strategies.

Conclusion

Singapore's government financing schemes offer unparalleled support for businesses at all stages of growth. By understanding and leveraging these opportunities, you can drive innovation, manage cash flow, and expand your operations effectively. Need help accessing government financing? Contact us today for expert guidance and tailored solutions!