The budget themed as “Emerge Stronger Together” focuses on three core enablers:
- - To grow a vibrant business community with a strong spirit of innovation and enterprise that is deeply connected with the ASEAN region and the world
- - Catalyse a wide range of capital
- - Create opportunities and redesign jobs
BUSINESS DEVELOPMENT AND LEADERSHIP
Enterprise Development Grant (EDG)
The grant supports companies to upgrade, innovate or venture overseas. Grants are available under three pillars:
- * Core Capabilities, wherein projects that help businesses prepare for growth and transformation by strengthening their core business capabilities beyond basic functions.
- * Innovation and Productivity, wherein projects that support companies to explore new areas of growth, or enhance efficiency by reviewing and redesigning workflow and processes through technology adoption.
- * Market Access, wherein projects that support companies to venture overseas.
Apart from being a Singapore-registered and operating entity with at least 30% local shareholding, the applicants should demonstrate financial viability to start and finish a project. Effective April 2020, as part of the qualifying requirements, applicants are required to commit for worker outcomes such as increase in wage increment, job creation, job redesign, or training for existing staff. Subject to conditions, eligible employers can also obtain subsidies under SkillsFuture Enterprise Credit.
Under Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022.
Enterprise Financing Scheme – Venture Debt (EFS-VDP)
The scheme is to finance the growth of innovative enterprises using Venture Debt and Warrants. Singapore registered business entities that are physically present in Singapore with at least 30% equity held by locals and having a group annual sales turnover of not more than S$500 million qualify for venture debt. Ideally suited for high-growth startups that lack access to conventional bank loans due to lack of collateral. The scheme has a maximum repayment period of 5 years with 50% risk sharing by the government ( young companies have up to 70% risk sharing). The interest rate will depend on the participating financial institution’s assessment of the borrowing entity. Notably, financing support under the EFS now covers six different areas, namely, working capital, fixed assets, venture debt, trade, projects and mergers & acquisitions
Under Budget 2021, the EFS -VDP is enhanced to support the growth of later-stage enterprises. The maximum loan quantum will be raised from S$5 million to S$8 million for new applications initiated from 1 April 2021.
Read more about Singapore Budget 2021 at InCorp Global.
