Trade and Industry Minister Chan Chun Sing announced enhancements to several grant and loan schemes for companies on Monday (October 12).
Firms looking to expand overseas, grow or transform their businesses amid Covid-19 will soon be able to tap into these grants and loan schemes.
Bigger Grants To Boost Overseas Expansion, Productivity
Under the Market Readiness Assistance Grant, firms looking to expand abroad will be able to have up to 80 per cent of qualifying costs covered from November 1 to September 30 next year.
This is up from 70 per cent currently.
Firms who have not exceeded S$100,000 in overseas sales in each of the last three preceding years can tap into this grant to target overseas markets.
According to the Enterprise Singapore website, each application is currently limited to one activity in a single overseas market, such as participating in trade fairs.
However, it will be extended to cover participation in virtual trade fairs, said Mr Chan during a virtual media briefing.
The minister also said that the growth of e-commerce due to the Covid-19 pandemic has opened up new opportunities for Singaporean retailers to venture overseas.
As for enhancing productivity, the Enterprise Development Grant and Productivity Solutions Grant will cover up to 80 per cent of qualifying costs until September 30 next year, after which they will cover up to 70 per cent.
The Enterprise Development Grant aims to help Singapore companies grow and transform, and supports projects related to business upgrading, innovation, or overseas ventures.
On the other hand, the Productivity Solutions Grant supports companies keen on adopting technology solutions and equipment to enhance business processes.
Expanded Loan Schemes
Businesses seeking loans will also be able to receive more help.
From January 1 next year, construction companies can apply for loans to finance the fulfilment of secured domestic projects.
On October 5, Deputy Prime Minister Heng Swee Keat announced the extension of the Temporary Bridging Loan Programme for six months, until September 2021, at reduced levels.
Currently, eligible enterprises may borrow up to S$5 million, with the interest rate capped at 5 per cent per annum.
This is aimed at helping Singaporean companies manage their working capital and cash flow needs.
According to Mr Chan, the schemes are “no longer about tiding businesses over the current crisis, but helping them to adapt to the new reality.”
Featured Image Credit: Track2Realty
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