What is Enterprise Development Grant (EDG)?
In order to survive the onset of Covid-19 and its impact on catalyzing businesses to digitalization, many businesses are forced to adopt technology and innovate their processes. Companies can receive funding for this purpose. Singaporean companies looking to upgrade, innovate, or expand overseas can take advantage of Singapore’s Enterprise Development Grant (EDG). Projects covered by the EDG include:
- Core Capabilities: Projects that serve to help businesses strengthen their foundation and grow. This means that the project should go beyond the scope of just accounting and sales. As such, costs incurred through the production of marketing collaterals will not be offset by the grant.
- Innovation and Productivity: Projects that tap into automation and technologies to enhance operational efficiency or explore new areas of growth.
- Market Access: Companies looking and are ready to expand overseas
How can my business qualify for EDG?
In order to qualify for the grant, your business must be registered and operating in Singapore, with at least 30% local ownership, in one of the three categories listed above. Applicants will also need to demonstrate their financial capability to initiate and complete the project. It will also include projected figures for three years after completion of the project, including revenue, staff and depreciation costs, and net operating profit before tax. See more details here.
The grant will be assessed based on the project scope, outcomes, and the competency of the service provider. According to Enterprise Singapore, the estimated project timeline should be completed within 12 to 18 months, with most of our approved project length spanning between 6 and 12 months.
As long as they are Singapore-owned companies, EDG is also applicable to SMEs and non-SMEs. Nevertheless, non-SMEs are only qualified to receive a lower percentage of support compared to SMEs.
What types of project does EDG supports?
The grant covers project costs relating to software and equipment, internal manpower, and third-party consultancy fees. The applicant must engage a qualified consultant for consulting projects. Feel free to contact us for EDG support.
Duration and timing of application
Although stated as between 8 – 10 weeks on Enterprise Singapore’s official website, our experience with helping firms apply for grants indicates a shorter processing time. Additionally, it is imperative to note that EDG projects cannot begin prior to the submission of a grant application, although it is not necessary to wait until the grant is approved. There is also the risk of a grant not being approved or disbursement being less than expected. Our experience indicates that the amount of funds disbursed is highly correlated with the company’s financial performance. A company that is financially sound will receive a higher disbursement than a company that is losing money.
In the current challenging business environment, grants like EDG also provide opportunities for businesses to scale their operations and innovate. For transitory expenses, business owners should remain proactive in applying for such aid. Additionally, one must exercise prudence in only applying for projects that are really eligible for the grants. Furthermore, business owners should not accept kickbacks when applying for EDG grants. The consequences of such acts range from being asked to refund the grants to being banned from all future grants and facing civil litigation. In addition, the government is now conducting more checks to ensure applicants’ eligibility for Enterprise Development Programs