Enterprise Singapore boosts funding for business grants

This is to prop up the recovery and internationalisation of businesses.

Enterprise Singapore (ESG) is enhancing several grants and financial support schemes aimed at bolstering businesses’ core capabilities and growth opportunities, an announcement revealed.

It is expanding the funding support level of Market Readiness Assistance Grant (MRAG) to up to 80% from 1 November to 30 September 2021. The scope will now include support for participation in virtual trade fairs to urge and allow firms to find new business opportunities abroad.

The Enterprise Development Grant’s (EDG) support level will also be upped to 80% beginning 1 January 2021 to 30 September 2021. The same upgrade will also apply to the Productivity Solutions Grant (PSG), which helps transform enterprises through supporting the adoption cost of off-the-shelf productivity measures that have been pre-approved by the government.

For businesses in need of working capital to sustain business growth, the Temporary Bridging Loan Program (TBLP) will be extended from 1 April 2021 to end-September the same year, supported by the concurrent extension of the Monetary Authority of Singapore’s SGD facility for ESG loans.

Under the extension, government risk-share on the loan will be slashed from 90% to 70% with the maximum loan quantum lowered to $3m.

Likewise, the Enterprise Financing Scheme - Trade Loan (EFS-TL), which buoys local firms’ trade financing needs, will be extended from 1 April to end-September 2021. Under the extension, the government’s risk-share on the loan will be lowered to 70%, with the maximum loan quantum remaining at $10m.

The Loan Insurance Scheme (LIS) will be streamlined into the EFS-TL programme from starting 1 April next year. Borrowers looking for coverage for trade loans can apply to participating financial institutions (PFIs) for government risk cover.

The Enterprise Financing Scheme - Project Loan (EFS-PL) will be strengthened to grant aid to construction companies to fund secured domestic projects, from 1 January 2021 to 30 March 2022. Risk-share support extended to PFIs will be at 50%, with the risk-share increasing to 70% for new companies, with the maximum loan quantum being $30m.