We are experienced consultants who have been administering Capability Development Grant (CDG) by SPRING. We hope to give you the latest updates on the new grant, Enterprise Development Grant (EDG) by Enterprise Singapore.
EDG is the short form for Enterprise Development Grant. This grant was announced in the Annual Budget 2018. In short, EDG is a grant for established local SMEs (Small Medium Enterprises) to help them grow and transform their businesses.
You can get funding up to 80%. Prior to COVID-19, the original support level was 70%. To fight against the impending recession, the Supplementary Budget aka Resilience Budget 2020 raised the support level to 80%. Only SMEs severely affected by COVID-19 will get the maximum support level of 90% on a case-by-case basis and as determined by ESG. The 90% support level is no longer valid.
The 80% support level will end on 31st March 2022. It was announced during Budget 2021, the original deadline is extended til 31st March 2022 from 30th September 2021.
Enterprise Singapore, ESG in abbreviated form, gives the final green light to all EDG grants.
That really depends on the scope of the project. The grant is correlated to the size of the company in terms of turnover and manpower. We do not have the exact algorithm nor science on this. Neither ESG will give you a definite answer on this.
Ok, this is strictly based on our experience with CDG and based on some assumptions.
Usually, projects are about $40k (based on the previous CDG Lite).
But, there are projects way above $40k, hitting above six figures, depending on the scope of work.
The projects can fall under these scope:
1. Core Capabilities
a) Strategic Brand and Marketing Development
b) Business Strategy Development
c) Human Capital Development
d) Service Excellence
e) Financial Management
2. Innovation and Productivity
a) Process Redesign
b) Product Development
3. Market Access
a) Overseas Marketing Presence (OMP)
b) Market Access
c) Pilot Project and Test Bedding
d) Mergers and Acquisitions (M&A)
To be eligible, you are required to:
1. Have a registered company and operating in Singapore
2. Have at least 30% local shareholding
3. Be in a financially viable position to start and complete the project.
And if you come from a big organisation, your organisation or group holdings should:
1. Have less than $100 million revenue
2. Employ less than 200 employees.
Based on our previous experience with CDG and our experience with EDG as well, a company should have a reasonable amount of turnover for the past three years. The 3 years audited accounts will be required when you apply for the grant.
Based on our previous experience with both CDG and EDG, a working hypothetical figure should be at least S$400k. A $1 million turnover will be ideal.
Our experience tells us that it should not be zero or just one. And the project sum must justify the size of the company. A good number should be 5 employees and they should not include directors, partners or owners.
Yes. With effect from 1 April 2020, SMEs will need to commit to improving workers’ outcome, such as creating more jobs or increasing wages.
In general, startups are not eligible for EDG. If you are a startup, you can look at the ecosystem meant for startups: Startup SG network.
Depending on the scope of your project, the timeline could range from 4 to 12 months. This includes time to establish proposed objectives and conduct research. Our typical branding project takes about 4 to 6 months.
From 1 January 2017, if you engage consultants, they need to be certified management consultants. SMEs should ensure that consultants involved in EDG must possess Enterprise Singapore-recognised certification; failing which Enterprise Singapore reserves the right not to support the consultancy fees incurred.
You need the following:
1. Your project proposal
2. Latest ACRA search results
3. Past 3 years audited financial statements (including latest year)
2. Our consultant’s proposal and
3. Our consultant’s certifications.
There is no fixed timeline. It may take 1 to 2 months. Do understand Enterprise Singapore is running a lean team to handle EDG.
In general, no. It is best to obtain an official letter of offer from Enterprise Singapore before commencing the project.
It means that you should not have already begun on the project before your application has been approved. Neither should you have made payment to service providers or suppliers involved in the project.
No. PIC has officially ended.
In theory, there are no restrictions on how many EDG Grants you can apply for. Currently, ESG allows you to apply and work on more than one EDG project at any given time. However, you can only apply for an EDG grant in a specified area once. This means that if you are awarded an EDG grant for Branding and Marketing once, you are no longer eligible for another EDG grant under the same category that is Branding and Marketing. However, you can still apply for EDG grants under other areas.
Productivity Solutions Grant (PSG) is a grant that supports Commercial Off-The-Shelf Solutions (COTS). Basically, COTS are more affordable and require little or no customisation work. It covers up to 90% of the solution cost. Click here more information about PSG. If COTS do not meet your needs and you require a bespoke solution for your business, do contact us!
The latest information can be found on Enterprise Singapore’s website.
Business Excellence (BE) certification with the respective Singapore Quality Class (lionhead logo) will cease by end September 2020. Awards under BE will cease immediately. However, SMEs can still apply for Business Strategy under EDG as well as used the BE framework for their business.
ESG will send you a letter of offer if you are successful in applying. You must accept the letter of offer in order to start the project. If you are not successful in the application, ESG will send you an email.
Yes, you can appeal the decision. Do submit the application again and ensure you close the necessary gaps and ESG will treat it as a fresh application.
Yes, currently, ESG allows you to make and advance payment claim of up to 20% of the total grant amount. This means you can request for this advance even before paying the invoice.
You can try to make interim claims before full completion. However, this is on a case-by-case basis.
After the completion of the EDG project, you will have to appoint an external auditor from a pre-approved panel. The auditor will ensure that the project is completed with proper transfer of monies between parties.
The audit fee is absorbed by ESG. You can claim the audit fee from ESG.
You should make a claim on the old grants portal: https://grantportal.enterprisesg.gov.sg/
Usually it takes 1-2 weeks for ESG to process the claim.