Corporate grants like PSG, EDG, SFEC and MRA help small and medium businesses cut their initial expenses, bring in new tech, back fresh ideas and grow overseas — this leads to lasting success better output and a sharper edge over rivals.
Starting and growing a business is thrilling — but it often puts a strain on your wallet. You might want to introduce a new product, upgrade your tech, or break into foreign markets. These opportunities need money. For many small and medium-sized companies, the biggest challenge is getting the cash to turn these plans into reality.
This is where picking the right corporate grant can help. Grants do more than give you money — the right funding support helps cut down risks, spark new ideas, and open up new markets you might think are out of your league. But not all grants serve the same purpose — and picking the right one can decide if your project gets a quick boost or changes things for good.
In this guide, we look at why corporate grants are important how they give SMEs a leg up, the main funding plans in Singapore, and answer common questions that business owners often look up online.
Why Corporate Grant Matter for SMEs
Corporate grants aim to help businesses come up with new ideas, expand, and keep up in changing markets. For small and medium-sized companies (SMEs) that often work with limited money, this help is really important.
A good grant can make your money worries less, speed up your plans, and make your company stronger in the long run. Here’s how:
1. Cut Down Money Worries for New Projects
Starting a new business project needs money upfront — buying equipment getting new tech, hiring experts, or changing how things work. These costs can make money tight or slow down big choices.
Corporate grants ease this squeeze by paying for part of the cost. This lets SMEs grow without risking their money situation. Instead of making your ideas smaller, you can go ahead with more confidence.
2. Boost New Ideas and Research
Coming up with new ideas is key to staying ahead, but it can be expensive. Looking into new things, working on them, testing them out, and bringing in new tech takes time and money — and you might not get anything back.
Money given to help with new ideas and building skills lets small companies try big things without taking all the risk. This helps businesses update how they work, make their processes digital, and create products ready for what’s next.
3. Help Grow Markets at Home and Abroad
Growing into new markets — in other countries — needs careful planning. Checking rules, moving stuff around making things fit the local area, and getting the word out all cost money.
Corporate grants that help SMEs expand into new markets can reduce these expenses and allow small businesses to reach more customers. With proper backing, your company can enter fresh markets with more assurance without stretching your budget too thin.
Key Corporate Grants for SMEs in Singapore
With many grants to choose from, the challenge is to pick one that matches your aims. Here are some of the most useful grants for Singapore businesses:
1. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG Grants) suits businesses that want to boost productivity through digital tools and automation. It backs both industry-specific and general IT solutions, software, and equipment that can make operations smoother.
- What it Covers: This grant provides up to 50% funding support to implement pre-approved IT solutions and equipment. Companies receive a maximum of S$30,000 per financial year.
- Use Cases: You can apply this grant to boost productivity or shift to digital processes. It supports various tools like HR, Payroll Software, Accounting Software, POS Systems digital marketing platforms, and inventory management solutions.
2. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) helps companies to transform, expand, or build long-term capabilities. It backs projects that involve new ideas, process changes, business upgrades, and growth into foreign markets.
- Support Model: The grant shares the costs of eligible projects (software, advice, staff equipment). SMEs can get up to 50% funding; bigger companies get less.
- Best For: Companies that want to grow — by expanding their work, improving their systems, or entering new markets.
3. SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit helps companies grow their workforce and transform their business. It does this by paying for some of the cost of approved training and development programs. This credit makes sense for you if your plan to grow focuses on building up your team’s skills and developing talent inside your company.
4. Market Readiness Assistance (MRA)
The Market Readiness Assistance Grant aids SMEs in expanding outside of Singapore. It covers costs such as researching overseas markets, meeting regulations, joining trade fairs, marketing, and finding business partners.
Grants like MRA allow SMEs to try out global markets without taking on too much financial risk.
Common Mistakes to Avoid When Applying for Grants
Many SMEs don’t get funding because of mistakes they can avoid. Grants help a lot, but you need to plan and be clear when you apply.
Common mistakes include:
- Turning in incomplete or wrong paperwork
- Picking grants that don’t match what the project needs
- Not budgeting enough money or time for the project
- Double-counting costs when asking for more than one grant
- Starting work before the grant is approved — which can make your application invalid
If you steer clear of these errors, you’ll have a much better shot at getting a grant.
Make It Easier With Help From Experts
Singapore’s grant scene can be too much to handle — if it’s your first time. Each grant has its own rules list of needed documents, and way of judging applications. One small mistake can slow down or weaken your request.
Teaming up with a grant consultant or a firm that knows grant writing inside out has several perks:
- Finding grants that fit your business needs like a glove
- Shaping your project pitch to meet eligibility rules
- Getting solid paperwork and money projections ready
- Taking care of submissions, check-ins, and rule-following
- Boosting your chances of getting approved
If you’re juggling many tasks outside help can make applying for grants a breeze.
To Wrap Up
The right business grant isn’t just a cash boost — it’s a smart move that speeds up growth, sparks new ideas, and gives you an edge over competitors. But how well it works hinges on picking a grant that backs your business aims and putting together your application with care.
Spend some time checking out your choices, make sure your goals match what the grant is looking for, and get help from experts if you need it. When you get the right funding support, your business can open up new chances, grow with confidence, and build a stronger base for lasting growth.
Frequently Asked Questions:
What is the difference between PSG and EDG?
PSG aims to help businesses cover the costs of pre-approved IT solutions, software, and equipment to boost productivity. It’s a good fit for companies looking to go digital or automate their processes. On the other hand, EDG backs more wide-ranging business transformation projects. These include new ideas, building skills, redesigning processes, or growing.
Who can apply for the Productivity Solutions Grant (PSG)?
To get PSG, a business must: register and run in Singapore; have at least 30% local ownership; meet SME rules (group sales ≤ S$100 million or ≤ 200 workers); and not sign deals or pay before grant approval.
Can I use a grant to pay for software like accounting systems or HRMS?
Yes. PSG backs pre-approved digital tools — including accounting systems, HRMS, inventory tools, POS, and more.
Does grant funding come as reimbursement or upfront payment?
Most grants like PSG work as reimbursements: you can’t sign contracts or pay before approval. After approval and project completion, you submit claims to get your money back.
Can SMEs apply for multiple grants at the same time?
Yes — if the funded costs don’t overlap (i.e., you don’t claim the same cost item under more than one grant), and you meet each grant’s eligibility criteria. Many SMEs combine, for example, PSG for digital tools and SFEC to train their workforce.
