In February this year, the Government announced that for more mature companies, including SMEs, it will co-fund their plans to adopt digital solutions and new technologies. A total of $1 billion has been set aside for further digital transformation schemes for mature companies. The Government will also extend its enhanced support of up to 80 per cent for existing enterprise schemes to end-March 2022. Before this, the support was up to 70 per cent.
Enterprise Development Grant
Enterprise Singapore oversees the Enterprise Development Grant (EDG) approval to companies with the maximum amounts given depending on each project's scope. Generally, the grant amount correlates to the company's turnover and manpower. Funds from the grant typically pay for third-party consultancy fees, software and equipment, and internal manpower cost.
Innovation and Productivity
Zooloo's digital solutions fall under the "Innovation and Productivity" pillar, which supports companies that explore new areas of growth or look for ways to enhance efficiency. This includes automation and technologies to make routine tasks more efficient. The scope of work can cover:
- Adoption/development of software solutions
- Development of solutions that involve the integration of systems
- Training of staff to deploy solutions
Who can apply for the EDG?
Your business will need to be registered and operate in Singapore with a minimum of 30% local shareholding to qualify for the grant. SMEs get up to 80%, while non-SMEs up to 60% of eligible costs from 1 April 2020 to 31 March 2022.
SMEs are organizations with less than $100 million in revenue and employ less than 200 employees. They will need to commit to improving workers' outcomes, such as creating more jobs or increasing wages. Enterprise Singapore will also vet your application based on the project scope and competency in achieving said outcomes, backed by a financially viable position.
How much cash do I need to come up with?
For a project size of say $150,000, an SME needs to pay a minimum of 20% or $30,000. This is a great deal offered by the Government till March 2022. After March 2022, the company needs to pay a minimum of 30% or $45,000.
In recognition of the tight cash flow situation with many SMEs, upon grant approval, the company will get $20,000 from the grant to pay Zooloo. The balance will be on a reimbursement basis. This means that the company will have to pay Zooloo first and use the receipt to claim from the grant.
Need assistance with grant applications? Have any queries regarding grants and the suitability of your organization? Contact us at sales@zooloo.asia.
Explore more
- Read about The Digital Transformation Journey
- Learn more about our “Digital Backbones”
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
Tags: #grant #EDG #covid19 #innovationandproductivity #sme #digitaltransformation #wholesaletrade #digitaladoption #wholesaledistribution
