MTI To Enhance Biz Grants, Loan Schemes

Trade and Industry Minister Chan Chun Sing announced on Monday (October 12th) improvements to several grant and loan programs for businesses.

Companies looking to expand overseas, expand or transform their businesses under Covid-19 will soon be able to benefit from these grant and loan programs.

Bigger subsidies to boost overseas expansion and productivity

Under the Market Preparation Assistance Grant, companies wishing to expand overseas will be able to cover up to 80% of eligible costs from November 1 to September 30 of next year.

That’s a 70% increase right now.

Businesses that have not exceeded S $ 100,000 in overseas sales in each of the past three years are eligible for this grant to target overseas markets.

According to the Enterprise Singapore website, each application is currently limited to activity in a single foreign market, such as attending trade shows.

However, it will be expanded to cover participation in virtual trade fairs, Chan said during a virtual press 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.

Regarding productivity improvement, the Business Development Grant and the Productivity Solutions Grant will cover up to 80 percent of eligible costs until September 30 of next year, after which they will cover up to 70 percent.

The Business Development Grant aims to help Singapore businesses grow and transform, and supports projects related to business upgrading, innovation or overseas businesses.

On the other hand, the Productivity Solutions Grant program supports companies wishing to adopt technological solutions and equipment to improve their business processes.

Expanded loan programs

Businesses looking for loans may also receive more help.

From January 1 of next year, construction companies can apply for loans to finance the realization of national guaranteed projects.

On October 5, Deputy Prime Minister Heng Swee Keat announced the extension of the six-month temporary bridging loan program, until September 2021, at reduced levels.

Currently, eligible businesses can borrow up to S $ 5 million, with the interest rate capped at 5 percent per annum.

It aims to help Singaporean businesses manage their working capital and cash flow needs.

According to Chan, the programs “no longer aim to inform businesses about the current crisis, but to help them adapt to the new reality”.

Featured Image Credit: Track2Realty

Also read: Start a business? First-time entrepreneurs can apply for a start-up grant of $ 50,000, starting at $ 30,000

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