Micro Loans For Startup Business – If you are an individual looking to start a new company in Singapore or currently running a registered startup in Singapore, you may want to know what grants are available. This article covers 7 of them.
Startup SG was launched in 2017 as a platform for entrepreneurs to access local support schemes. One of the six pillars of Startup SG, the Startup SG Founder is most relevant to new entrepreneurs. Startup SG’s support is provided by Enterprise Singapore.
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Startup SG Founder provides startup grants of up to $30,000 under a joint matching agreement with startup mentoring. This means that the scheme pays $3 for every $1 an entrepreneur raises, up to a maximum of $30,000. Therefore, to qualify for the maximum grant of $30,000, the entrepreneur himself must raise $10,000 and put it into business.
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AMP can seek up to 50% equity in startups. Therefore, you should contact the MPA for details on equity terms.
Additionally, Startup SG’s Startup SG Tech supports technology startups and provides initial funding to successful applicants to commercialize their proprietary technologies. Tech startups can apply for proof-of-concept (POC) grants of up to $250,000 or proof-of-value (POV) grants of up to $500,000, depending on the stage of development of the technology or concept.
The POC project is still in the conceptualization stage and the technical/scientific feasibility of the concept has not yet been tested. POV projects, on the other hand, are projects where you already have a technically/scientifically feasible concept and want to develop a working prototype.
Again, if you are offered a grant, please note that the grant will include an equity component in which Enterprise Singapore may exercise its equity subscription. To maintain financial discipline, principal payments must be increased by an additional 10% and 20% respectively for POC and POV grants.
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For more information on grants and the application process, please visit the SG Tech Startup page.
The Enterprise Development Grant (EDG) is a program administered by Enterprise Singapore. These grants are intended to support projects that help startups (and Singaporean companies in general) strengthen their business foundations, pursue innovation, improve productivity and expand into overseas markets.
EDG will cover up to 30% – 70% of the cost of a qualifying project, depending on whether the company is a small business (SME) and whether the cost is related to software and equipment.
For more information on grants, please visit the Enterprise Singapore and IMDA websites.
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The Productivity Solutions Grant (PSG) supports companies interested in adopting IT solutions and equipment to improve existing business processes and increase productivity. PSG will bear up to 70% of the investment costs for government-approved long-term technology solutions such as customer relationship management solutions and human resource management systems.
VFG grants are available to new and existing social enterprises that need funding to start or expand their business. Provided by the Singapore Center for Social Enterprise (raiSE) and supported by the Ministry of Social and Family Development. Interested applicants may apply for grants of up to $300,000.
To qualify, your social enterprise must address a community gap/need in one or more of the outcome areas provided. Some of these areas include providing employment opportunities or closing social disparities in mental health and treatment. A full list of result areas can be found on the raiSE Singapore website along with a link to apply for the grant.
For businesses in the tourism sector registered in Singapore, the BIF aims to encourage innovation and technology adoption and reengineering of business models and processes to improve productivity and competitiveness. BIF is provided by Singapore Tourism Board.
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The level of support BIF provides depends on the size of your business. Successful Small and Medium Business (SME) applicants receive financial assistance of up to 70% of the cost of qualifying. These include:
Proposed projects will be evaluated for how they improve the productivity and competitiveness of the tourism industry. More information can be found on the Singapore Tourism Board website.
P-Max is an initiative of Workforce SG that aims to connect hiring SMEs with job seekers, managers, executives and technicians (PMETs). PMET job seekers are screened and placed in suitable positions in PMI recruitment by P-Max program managers. Alternatively, PMI may submit the new employee PMET for the P-Max program.
Newly hired PMETs attend 2/3-day workshops and PMI supervisors attend 1-day workshops. After that, the P-Max Program Manager will follow up with the newly trained SMEs and PMETs over a period of six months to monitor their performance and help them apply the practices learned in the workshops.
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If a company successfully completes a six-month follow-up and retains a new employee, it may qualify for a one-time grant of $5,000.
To apply, you must contact the appropriate program manager or submit an interest at this link.
More information about P-Max and a list and contact details of program administrators can be found on the Workforce SG website (click on the ‘How to Apply’ tab).
Most of the starter grants discussed above require you to already set up your company before you can start applying. If you haven’t already, you might consider engaging a business services company to incorporate the company on your behalf. Starting a new business is not easy and there are often many legal processes that require due care and compliance in the early stages.
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Business services companies provide business support services, including company formation. We can assist with business registration and submission of important documents to comply with legal requirements for company establishment.
Among other things, a business services company can help you manage deadlines and compliance requirements. With a business services firm dedicated to handling these legal requirements, you can effectively manage your startup and more efficiently direct your resources towards realizing your goals.
If you are interested in hiring a corporate services company, you can learn more and contact us on this page.
After successfully setting up your company and applying for the above related grants, you should be mindful of the regulatory and compliance requirements mandated by Singapore law. Some of these requirements include having a registered office and appointing a company secretary. The business services company you choose can provide business secretarial services and help you manage your grant-related needs.
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You can also navigate the various forms and requirements involved in forming a company, or consult a company attorney for legal assistance with specific obligations such as intellectual property protection, contract review and drafting.
The information provided does not constitute legal advice. You should obtain specific legal advice from an attorney before taking any legal action. We do our best to ensure the accuracy of the information on this website, but you rely on the information at your own risk. As a small business owner, you will need finance for several businesses. Long-term capital expenditures such as investments in new real estate, new infrastructure, new stores or branches, etc. require significant financing. On the other hand, working capital expenses such as payroll payments, purchases of inventory or replacement of aging machinery, marketing expenses, etc. require a smaller amount of financing. Depending on the nature of the expenses and the repayment period required, there are different types of business loans to suit all types of needs.
Check out this infographic to learn about 10 types of small business loans in a nutshell. While most of these can be addressed with small business loans, other loans such as overdrafts and down payments are very specifically targeted at short-term financing needs that can be easily repaid in a few months. Choosing a secured or long-term loan for your working capital needs may not be the best option. The term of such loans is longer because it is desirable to repay these loans as quickly as possible to maintain a clean balance sheet. Similarly, taking out short-term credit loans to finance large capital needs can incur huge interest charges that can lead to massive debt if not properly addressed.
So, it’s a good idea to do some research and get a solid understanding of the business loan that best suits your needs and ability to repay. Fullerton India offers unsecured business loans of up to INR 50 lakh* at attractive rates repayable within 48 months*. Apply today to find out more.
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