Have grant, will smile: With Enterprise Singapore’s Productivity Solutions Grant, businesses can embark on their transformation journey by adopting IT solutions and equipment to improve business processes. Photo credit: Unsplash
In the blink of an eye, 2022 is here. No one knows how things will pan out in the next 11 months or so, but it always pays to look ahead and secure any funding you can get for your business.
One such way to get funds is through grants – one of which is Enterprise Singapore’s (ESG) Productivity Solutions Grant (PSG).
The PSG helps businesses to transform by helping those that are interested in adopting IT solutions and equipment to enhance business processes.
In other words, it is a big boost when it comes to SME financing (and we know how every bit counts for SME funding).
As announced in Budget 2021, the PSG’s support level will be raised to up to 80% (from up to 70%) until 31st March 2022.
Update (2nd March, 2022): Budget 2022, announced on 18th February 2022, will set aside around $600 million to expand the range of available solutions under the PSG and encourage a greater take-up rate of productivity solutions among SMEs.
Eligible companies will have their annual grant cap refreshed at the start of the next financial year, which starts on 1st April 2022.
Take note of these points before you apply for project financing.
Some sector-specific solutions covered by the PSG include:
The PSG also encourages businesses to adopt broad-based solutions that cut across all industries, such as:
You can choose from a list of pre-scoped solutions eligible to your sector. Only pre-scoped packages by pre-approved vendors are available for companies to choose from. There is no pre-approved equipment vendor, but the equipment must at least meet the specifications provided.
Companies must not have any prior relations, dealings or agreements with any of the vendors.
Unless otherwise stated, only the actual purchase/lease/hire cost of the pre-approved equipment or pre-approved IT solution package will be supported by the grant. It does not include other related administrative fees/charges (e.g. delivery or installation fees).
All solutions supported under the PSG are reviewed regularly. Do take note of the current support levels and grant caps before applying.
These solutions were pre-scoped by various government agencies, including Enterprise Singapore, National Environment Agency and Singapore Tourism Board.
Still, it is best to be cautious when engaging or dealing with vendors – do not share your Corppass with them for the submission of any grant application or claim made for business financing.
You are eligible to apply for the PSG if your business:
Good news – you may be able to qualify for additional subsidies under the SkillsFuture Enterprise Credits (SFEC) scheme if you:
Each company supported by ESG has an annual grant cap of S$30,000 for ESG-supported solutions, starting on 1st April and ending on 31st March the following year.
Make sure you check your company’s grant cap on the Business Grants Portal (BGP) before applying for project financing.
In addition, note that for a grant cap ending 31st March 2021, you would need to have submitted your PSG application by 1st Feb 2021 to be qualified under this grant cap.
Likewise, applications submitted after 1st February 2021 can tap on the grant cap for the next financial year for the purpose of business financing.
Unless otherwise stated, only the actual purchase/lease/hire cost of the pre-approved equipment or pre-approved IT solution package is eligible for grant support. This means other related administrative fees or charges (e.g. delivery fees, installation) are excluded.
Click here for a step-by-step guide to the application process. It includes details on the following:
You can also go through this PSG application checklist to be doubly sure you don’t leave out anything.
Follow these steps to make an application:
1. Using the navigation menu, access the list of pre-scoped, supportable IT solutions/equipment/consultancy service solutions eligible for the sector your business is in. Pick the solutions that best fit your business needs.
2. For IT solutions, get a quotation from the pre-approved vendor.
For Equipment, source for the equipment you require and get a quotation from the vendor.
For Consultancy Service, get a quotation from the pre-approved consultant.
3. Submit your application on the BGP. You need a Corppass account to access the portal.
4. Submit your grant claim on the BGP before your claim due date.
You can submit more than one PSG application concurrently. But support will only be given for one package per solution category per deployment location.
Here are two examples of supportable applications:
In other words, if you apply for an IT solution to be deployed at the same location, your application will be rejected.
The IT solution or equipment needs to be held for one year from the date of claim approval of the final claim.
If you want to change your IT solution vendor, you can withdraw your previous application and submit a new one, as long as payment has not been made to the new vendor prior to submission of the new application.
It takes about six weeks for your application to be approved, so you do need to factor in this point when applying.
There are no compulsory application fees for schemes offered by ESG. Individuals or firms that offer grant application services and quote application fees are not endorsed by the government.
If your PSG application is approved, an email will be sent to the email address you keyed in on BGP to confirm this.
The funds will be credited directly to your company’s bank account through GIRO. The completed GIO form needs to be verified by your company’s bank and submitted to ESG prior to your company’s claim request.
For enquiries, call +65 6898 1800, fill in this form, or visit any of the SME Centres.
You can also read the frequently asked questions.
As the adage goes, the only way to fail is to not try at all. If you require SME funding to procure IT solutions and equipment that will help your business to perform better or even scale, then the PSG is absolutely worth a shot.
However, do take note of the six-week approval and processing timeline, and submit your claims in accordance with what is required in the frequently asked questions. The link is also useful if you encounter problems with using your Corppass.
As always, be aware of what your business requires at any point in time in terms of SME financing and plan ahead of time to increase your chances of success.
Once you submit your application, you may proceed to purchase the equipment or IT solution even before the outcome is out.
However, if the application outcome is unfortunately unsuccessful, you will not be able to claim for the amount spent on the IT solution or equipment.
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Belinda loves thinking about random stuff, and collecting useless bits of facts and trivia. She often roots for the underdog, and believes the world needs more happy endings.
