Supplementary Budget 2020

Announced on 26 Mar, 6 Apr, 26 May and 12 Oct

Market Readiness Assistance (MRA) Grant

OVERVIEW

Small and medium enterprises (SMEs) will receive an international boost with the Market Readiness Assistance (MRA) grant to help take your business overseas.

Eligible SMEs will receive the following support:

  • Up to 70% of eligible costs, capped at S$100,000 per company per new market* from 1 April 2020 to 31 March 2023 that covers:

    • Overseas market promotion (capped at S$20,000)

    • Overseas business development (capped at S$50,000)

    • Overseas market set-up (capped at S$30,000)

  • Each application is limited to one activity in a single overseas market (e.g. market entry, or participation in a trade fair)

 

Note: The MRA Grant support level of up to 70% will be extended until 31 Mar 2023.

* With effect from 1 April 2020, a new market refers to a target overseas country whereby the applicant company has not exceeded S$100,000 in overseas sales in each of the last three preceding years.

ELIGIBILITY

Companies should meet the following criteria:

  • Business entity is registered/incorporated in Singapore

  • New market entry criteria, i.e. target overseas country whereby the applicant has not exceeded S$100,000 in overseas sales in each of the last three preceding years

  • At least 30% local shareholding

  • Group Annual Sales Turnover of not more than S$100 million; OR Company's Group Employment Size of not more than 200 employees

Enterprise Financing Scheme – SME Working Capital Loan (EFS WCL)

OVERVIEW

Finance operational cashflow needs.

MAXIMUM LOAN QUANTUM

S$1 million / borrower

Note: Overall loan exposure limit of S$50 million per borrower group across all areas.

MAXIMUM REPAYMENT PERIOD

5 years

 

RISK-SHARE

The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.

 

INTEREST RATE

Subject to the PFIs’ assessments of risks involved.

 

Note: As announced at Solidarity Budget 2020, the Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) is enhanced to help SMEs with their working capital needs. The maximum loan quantum was raised from $300,000 to $1 million. Risk-share was also increased to 90% (from 50% and 70% for young companies) for new applications initiated from 8 April 2020 until 31 March 2021. 

Enterprises under the Enhanced EFS-WCL may apply for a deferral of principal repayment to help them reduce their monthly cash outflow, subject to assessment by the PFIs.

ELIGIBILITY

  1. Be a business entity(1) that is registered and physically present in Singapore

  2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership

  3. Maximum Borrower Group2 revenue cap of S$500 million for all enterprises

  4. For "SME Working Capital", the SME definition refers to Group revenue of up to S$100 million or maximum employment of 200 employees

1 ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the enhanced SME Working Capital Loan. Approval of the loan is subject to the PFI's assessment.
2 Borrower Group consists of the following:

a.Borrower; and

b.Corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down. (Annual sales turnover and employment size is computed on a group basis.)

Enterprise Development Grant (EDG)

OVERVIEW

 

Today and into the future, companies that thrive are the ones that have strong business foundations and strategies, adopt technology and innovative processes, and grow their overseas presence.

The Enterprise Development Grant (EDG) helps Singapore companies grow and transform. This grant supports projects that help you upgrade your business, innovate or venture overseas, under three pillars:

 

1. Core Capabilities

Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations. These should go beyond basic functions such as sales and accounting.

2. Innovation and Productivity

Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency. These could include reviewing and redesigning workflow and processes. Companies could also tap into automation and technologies to make routine tasks more efficient.

3. Market Access

Projects under Market Access support Singapore companies that are willing and ready to venture overseas. You may tap into the EDG to help defray some of the costs of expanding into overseas markets.

What does the EDG support

 

The grant funds qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost.

As announced at Supplementary Budget 2020, the maximum support level will be raised to 80% from 1 April 2020 to 30 September 2021.

For enterprises that are most severely impacted by COVID-19, the maximum support level may be raised to 90% on a case-by-case basis until 31 December 2020.

Who can apply?

To qualify for the EDG, you need to:

  • Be a business entity registered and operating in Singapore

  • Have a minimum of 30% local shareholding

  • Be in a financially viable position to start and complete the project

Temporary Bridging Loan Programme (TBLP)

OVERVIEW

 

The Temporary Bridging Loan Programme (TBLP) provides access to working capital for business needs.

Note: As announced at Solidarity Budget 2020, eligible enterprises may borrow up to $5 million under the TBLP, with the interest rate capped at 5% p.a., from Participating Financial Institutions (PFIs). The Government will provide 90% risk-share on these loans for new applications initiated from 8 April until 31 March 2021.

Eligible enterprises under the TBLP may also apply for a deferral of principal repayment to help them reduce their monthly cash outflow, subject to assessment by the PFIs.

 

Extension of TBLP
The TBLP will be extended for 6 months, from 1 April 2021 to 30 September 2021.

 

MAXIMUM LOAN QUANTUM

To 31 March 2021: S$5 Million / Borrower Group1 
From 1 April 2021 to 30 September 2021: S$3 Million / Borrower Group1

 

MAXIMUM REPAYMENT PERIOD

5 years

 

RISK-SHARE

To 31 March 2021: Risk share is at 90%
From 1 April 2021 to 30 September 2021: Risk share is at 70%

The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share

 

INTEREST RATE

Capped at 5% p.a.


1 Borrower Group consists of the following:

a.Borrower; and

b.Corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down. (Annual sales turnover and employment size is computed on a group basis.)

ELIGIBILITY

  1. Be a business entity(2) that is registered and physically present in Singapore

  2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership

2 ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the Temporary Bridging Loan. Approval of the loan is subject to the PFI’s assessment.

Productivity Solutions Grant (PSG)

OVERVIEW

Technology is not about fancy and expensive high-end solutions. You can kick-start your technology journey by taking simple steps to automate existing processes and improve productivity. The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes.

 

For a start, PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.

 

These solutions have been pre-scoped by various government agencies such as Enterprise Singapore, National Environmental Agency (NEA) and Singapore Tourism Board (STB).

As announced at Supplementary Budget 2020, PSG will be enhanced to encourage enterprises to continue their digitalisation and productivity upgrading efforts. The maximum funding support level will be raised to 80% from 1 April 2020 to 30 September 2021.

 

To help enterprises implement COVID-19 business continuity measures, the scope of generic solutions has expanded to include:

  • Online collaboration tools (including laptop-bundled remote working solutions);

  • Virtual meeting and telephony tools;

  • Queue management systems;

  • Temperature screening solutions

 

The support for COVID-19 business continuity measures will end on 31 Dec 2020.

ELIGIBILITY

SMEs can apply for PSG if they meet the following criteria:

  • Registered and operating in Singapore

  • Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore

  • Have a minimum of 30% local shareholding; with Company's Group annual sales turnover less than S$100 million, OR less than 200 employers (for selected solutions only)

Enterprise Financing Scheme – Project Loan

OVERVIEW

Finance the fulfillment of secured overseas projects. The supportable loan types include:

  • Working Capital Loan

  • Factory/ Building/ Land (includes Purchase/ Renovation/ Construction)

  • Equipment/ Machineries/ Vessels/ Other Fixed Assets/ Machinery Hire Purchase

  • Guarantees

Note: The Enterprise Financing Scheme – Project Loan (EFS – PL) will be enhanced from 1 January 2021 until 31 March 2022 to support domestic projects for construction1 companies.

 

MAXIMUM LOAN QUANTUM

S$50 Million / borrower group2 for overseas projects
S$30 Million / borrower group2 for domestic projects


Note: Overall loan exposure limit of S$50 million per borrower group across all facilities.

MAXIMUM REPAYMENT PERIOD

Up to 15 years for Fixed Asset loans
Up to 5 years for Working Capital Loan and Guarantee


There must be an underlying contract, secured sales order and/or projects tied to the fixed asset, working capital loan and guarantee.

 

RISK-SHARE

Risk share is at 50%. Young companies3 or companies operating in a challenged market4 may receive a risk share of 70%.

The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.

 

INTEREST RATE

Subject to PFIs' assessment of risks involved.

ELIGIBILITY

  1. Be a business entity5 that is registered and physically present in Singapore, and

  2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and

  3. Have Group Annual Sales Turnover of not more than S$500 million

  4. Companies registered with SSIC codes beginning with 41,42 or 43 may apply for the enhanced EFS-PL to support domestic projects

 

For the loan to be supported under EFS-PL, the additional criteria are required:

  1. Fixed assets acquired are to discharge a contractual obligation under the project.

  2. It must be for secured sales order and/or projects. It cannot be used solely for general working capital/operating expenses.

1 Companies registered with SSIC codes beginning with 41, 42 or 43 may apply for the enhanced EFS-PL to support domestic projects through the PFIs.
2 Borrower Group consists of the following:

a.Borrower; and

b.Corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down. (Annual sales turnover and employment size is computed on a group basis.)

3 Young companies refer to firms formed within the past 5 years with at least 1 employee, and more than 50% equity owned by individuals.
4 Challenged markets refer to countries with S&P rating BB+ and below, including non-rated countries.

5 ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the scheme. Approval of the loan is subject to the PFI’s assessment.

Enterprise Financing Scheme – Trade Loan (EFS TL)

OVERVIEW

 

 

Trade Loan

Finance trade needs, including:

  • Inventory / stock financing

  • Structured pre-delivery working capital (revolving working capital)

  • Factoring (with recourse) / bill of invoice / AR discounting

  • Overseas working capital loan

  • Bank Guarantee (capped at 2 years tenure)

 

EFS Trade Loan covers enterprises’ domestic and overseas transactions. It also complements the current Loan Insurance Scheme (LIS) by insuring loans which are beyond the capacity of current LIS insurers.

The diagram below illustrates how Loan Insurance Scheme and EFS Trade Loan help enterprises secure trade loan facility:

Note: As announced at Solidarity Budget 2020, the EFS Trade Loan is enhanced to help enterprises with their trade financing needs. The maximum loan quantum was raised from S$5 million to S$10 million. The risk-share was also increased to 90% (from 50% and 70% for young companies) for new applications initiated from 8 April 2020 until 31 March 2021.

 

Extension of enhanced EFS-TL
The enhanced EFS-Trade Loan will be extended for 6 months, from 1 April 2021 to 30 September 2021.

 

MAXIMUM LOAN QUANTUM

S$10 million / borrower group

Note: Overall loan exposure limit of S$50 million per borrower group across all areas.

MAXIMUM REPAYMENT PERIOD

1 year

RISK-SHARE

To 31 March 2021: Risk share is at 90%
From 1 April 2021 to 30 September 2021: Risk share is at 70%

The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share. 

 

INTEREST RATE

Subject to PFIs’ assessment of risks involved.

ELIGIBILITY

  1. Be a business entity(1) that is registered and physically present in Singapore, and

  2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and

  3. Have Group Annual Sales Turnover of not more than S$500 million

 

1ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the scheme. Approval of the loan is subject to the PFI’s assessment.

Digital Resilience Bonus

OVERVIEW

 

Digitalisation is a key enabler for businesses to improve their competitiveness and productivity, so that they can emerge stronger. It will also help businesses to be more resilient and adapt to new post-COVID norms.

 

The Digital Resilience Bonus (DRB) aims to uplift the digital capabilities of a broad base of enterprises. For a start, DRB will be targeted at the Food Services and Retail sectors which are more affected by safe distancing requirements in the reopening of the economy.

The DRB is given on top of enhanced digitalisation assistance provided under the SMEs Go Digital programme. Food Services and Retail enterprises that have PayNow Corporate, e-invoicing, and use pre-defined categories of digital solutions for Business Processes, Digital Presence and Data Mining and Analytics can receive bonus payouts of up to $10,000

 

How will my enterprise benefit from adopting the digital solutions?

As we exit from the Circuit Breaker and gradually reopen our economy in phases, safe management efforts are expected to remain in place for a considerable period of time. A new normal is likely to emerge globally, where working from home, interacting virtually, buying online and ordering food delivery will be a new way of working and living.

If your business is in the Food Services or Retail sector, the following digital solutions will help you to adapt and thrive in this new normal:

  • e-Payment (PayNow Corporate) and e-Invoicing enable your business to carry out cashless and paperless transactions, thus reducing the need for physical interactions between buyers and suppliers and being paid faster.

 

  • Accounting and HR/payroll solutions enable your business to be more efficient, support remote working and business continuity.

 

  • Digital Ordering for dining in and takeaways enables your patrons to place their own orders and make payments digitally. It sends your patrons’ orders to the kitchen immediately for food preparation, thus improving efficiency and accuracy.

 

  • Inventory Management enables automatic synchronisation between your inventory movements and your orders, sales and deliveries, thus avoiding under or over-stocking and eradicating the need for manual stock-taking.

  • e-Commerce, e-Procurement and Food Delivery Platforms enable your business to have better engagement with your existing customers and allow you to expand your market reach beyond your physical shopfronts.

  • Data Mining and Analytics enable you to optimise business outcomes (e.g. maximise conversion, optimise product mix, reduce wastage) through analysing consolidated data from multiple sources in an insightful way.

 

What are the eligibility criteria?

You may use the checklist below to assess your enterprise’s eligibility:

Mandatory Baseline

1. Does my UEN fall under the Food Services or Retail sectors as at 26 May 2020?

2. Is my UEN incorporated on or before 26 May 2020?

3. Does my UEN have an active PayNow Corporate account?

4. Is my UEN using InvoiceNow?

If your answer is ‘Yes’ to all the above, you can proceed to assess your eligibility