SME grants and support schemes from the government and UOB in 2023

High inflationary pressures in Singapore have left businesses grappling with rising costs for utilities, rental, manpower, fuel, and more. While the macroeconomic environment remains challenging, SMEs can tap into a suite of grants and support schemes across digital transformation, working capital, and other business needs to fuel your growth.

Here is a quick overview of the government grants and schemes that SMEs can benefit from along with solutions provided by UOB.

Business Loans

SMEs who need funding for expansion and growth can tap into these support schemes, offering loans that you can repay in instalments.

The Enterprise Financing Scheme (EFS) is jointly offered by Enterprise Singapore and participating financial institutions such as UOB. This comprehensive scheme seeks to help businesses address seven key areas of their financing needs by offering the following type of funding.

• EFS – SME Working Capital Loan: Features an enhanced loan quantum of up to S$500,000 per borrower till 31 March 2024, enabling SMEs to improve their operational cash flow.
• EFS – Trade Loan: Enhanced to help SMEs finance their trade needs, with the maximum loan quantum raised to S$10 million per borrower till 31 March 2024.

If you require additional working capital to support your business growth, the UOB Business Loan offers an additional boost by bundling the EFS-SME Working Capital Loan of up to S$500,000 and the UOB Business Loan of up to S$350,000 to offer up to S$800,000 maximum loan per borrower.

No collaterals are required, enabling SMEs to easily secure funding at preferential rates. Start-ups with operations of more than 12 months can apply for loans of up to S$100,000.

Grants for Overseas Expansion

For businesses that are planning to expand their global footprint and market presence, the following are some key government support schemes to tap on.

• Enterprise Development Grant (EDG): The EDG provides funding for Singapore companies that aim to strengthen their core capabilities, innovate, or expand into overseas markets under the Market Access pillar. From 1 April 2023, the programme will cover up to 50% of qualifying project costs for local SMEs. For sustainability-related projects, however, SMEs may be able to enjoy up to 70% support from 1 April 2023 till 31 March 2026.
• Market Readiness Assistance (MRA) Grant: For SMEs looking to venture abroad, this grant offers a much-needed financial leg up. You can get funding for up to 50% of eligible costs related to overseas market promotion, business development, and market set-up, capped at an enhanced S$100,000 per company per new market until 31 March 2025.
• Grow Digital: A scheme under the SMEs Go Digital programme, Grow Digital focuses on helping SMEs sell overseas through e-commerce. SMEs can benefit from smart matching with overseas clients, access to financing offers facilitated via e-commerce platforms, and skills training in cross-border e-commerce.
• Singapore Global Enterprises (SGE) Initiative: Given a fresh top-up of S$1 billion in Budget 2023, the SGE initiative delivers wide-ranging support through existing and new programmes. This includes strengthening innovation capabilities through the set-up of innovation centres and helping SMEs to grow market networks and diversify their supply chain.

Grants for Digital Transformation

As SMEs grapple with rising costs and manpower crunch, going digital holds the key to boosting productivity. SMEs Go Digital is an umbrella programme designed to spur SMEs’ digital adoption, with resources ranging from digital start packs to funding support. This includes:

• Productivity Solutions Grant (PSG): For local SMEs adopting digital solutions to automate their operations, this grant offers funding for up to 50% of the cost. It covers sector-specific solutions like retail, food, logistics, construction, and precision engineering, along with cross-sector areas such as customer management, data analytics, financial management, and inventory tracking.
• Advanced Digital Solutions (ADS): Forward-thinking SMEs can tap into the ADS to deepen their digital capabilities and build future-readiness. Funding support covers up to 70% of the adoption costs for advanced technologies like AI and blockchain, as well as integrated digital solutions.

Beyond government grants, UOB is also stepping up to support SMEs’ digital transformation with solutions such as:

• UOB BizSmart: If you are looking to digitalise your day-to-day workflows, UOB BizSmart makes it easy to take the first step. This suite of curated digital solutions empowers your SME to drive business efficiency and growth with accounting, HR, digital marketing, and POS tools from UOB’s trusted solutions partners. Under the Start Digital Pack, you can sign up for up to two solutions and be rewarded with up to six months’ free usage, along with a payout of S$400¹ upon successful sign-up.
• UOB eBusiness Account²: Digitalising your banking experience can boost your financial management as well. The UOB eBusiness Account simplifies banking for SMEs, with cost-effective perks such as 100% rebates for bulk payroll transactions, S$0.50 rebate per transaction on up to 60 outgoing FAST transactions, and waiver of annual fee during the year of account opening.
• UOB SME app: Busy SME owners can tap into the new UOB SME app to enhance your digital banking experience. Get an overview of your cash flow, receive personalised cash flow insights, and connect your accounting data with your business account in one convenient dashboard.

Wage Support for Manpower

Amidst a tight labour market, rising manpower costs remain a top concern for small businesses in 2023. To ease your labour woes, take advantage of the following schemes and grants to boost your headcount.

• Progressive Wage Credit Scheme (PWCS): Newly enhanced in Budget 2023, the PWCS aims to help businesses uplift their lower-wage workers. Until 2026, the government will co-fund wage increases up to a S$2,500 gross monthly wage ceiling, with a 75% co-funding ratio in 2023. Wage increases up to a S$3,000 gross monthly ceiling will receive 45% co-funding support in 2023.
• Senior Employment Credit (SEC): Now extended to 2025, this wage offset scheme is targeted at supporting employers who hire senior workers. Employers will receive up to 8% of the wages paid to eligible Singaporeans workers aged 60 and above and earning up to S$4,000 per month.
• Part-time Re-employment Grant: Like the SEC, this grant is designed to promote employment of senior workers aged 60 and above. Employers who offer flexible work arrangements such as part-time re-employment, along with structured career planning, will receive S$2,500 per resident senior worker.
• Enabling Employment Credit (EEC): The EEC offers wage offsets to employers who offer work to local workers with disabilities. For each employee with disabilities earning less than S$4,000 a month, employers will receive an offset of up to 20%, capped at S$400 per month. For employees who have been out of work for at least six months, employers can receive up to an additional 20% offset on the first nine months’ wages, applicable till December 2025.

Funding for Employee Training

Lifelong learning is more crucial than ever in our fast-changing world, and the government offers incentives to support upskilling. Keep your team’s skills sharp and boost your manpower with the following subsidised training programmes.

• Enterprise Leadership for Transformation (ELT): This one-year programme is designed to help SME business leaders hone their entrepreneurial and expansion capabilities. Leaders will learn to develop a customised business growth plan, study market assessment strategies, and even go on a market immersion trip. Qualified SMEs can benefit from subsidies for a final course fee of approximately S$1,000.
• SkillsFuture Career Transition Programme (SCTP): The SCTP offers training support for those pivoting to new sectors or roles mid-career. Full-time and part-time courses are being progressively rolled out, focusing on sectors with strong hiring opportunities such as infocomm technology and advanced manufacturing. Employees can leverage baseline subsidies of up to 70% of course fees, with additional subsidies available for up to 95% of course fees.
• SGUnited Mid-Career Pathways Programme: This attachment programme helps mid-career individuals develop new, in-demand skills. Those aged 40 and above can join attachment programmes and receive training with host organisations for up to six months. Trainees will earn a monthly allowance of up to S$3,800, with 70% of that funded by the government.
• Job-Skills Integrator Initiative: Introduced in Budget 2023, this initiative centres around Job-Skills Integrators who will connect companies and individuals with industry-relevant employment and training partners. Employers can contact the appointed Job-Skills Integrators in their industry for access to training courses, careers advisory, and career compatibility solutions.

Financial Support for Energy

Soaring electricity prices are hurting the bottom line of many SMEs, with F&B businesses reporting that their electricity bills have doubled or tripled. Moving towards energy efficiency can benefit both your profits and the planet.

Energy Efficiency Grant: This recently unveiled grant provides co-funding for SMEs to adopt more energy-efficient equipment. Targeted at businesses in the food services, food manufacturing, and retail sectors, the grant will cover up to 70% of approved equipment costs in categories such as LED lighting, air-conditioners, cooking hobs, and refrigerators, up to a cap of S$30,000 per year.

Financial Support for Innovation

One key focus in Budget 2023 is nurturing and sustaining innovation for Singapore businesses to not just survive but also break new frontiers. Fuel your innovation efforts and take your business to the next level with the following schemes.

• Enterprise Innovation Scheme (EIS): Announced in Budget 2023, this scheme features enhanced tax measures to support businesses’ research & development, innovation, and capability development activities. Businesses will receive increased tax deductions for these activities, from up to 250% of qualifying expenditure before 2024 Year of Assessment (YA), to up to 400% of qualifying expenditure between the 2024 and 2028 YA. Eligible businesses can also opt to convert up to 20% of total qualifying expenditure for each YA into cash, capped at S$20,000.
• Enterprise Development Grant (EDG): The EDG provides funding for Singapore companies under three pillars: Core Capabilities, Innovation & Productivity, and Market Access. Under the Innovation & Productivity pillar, businesses can apply for up to 50% support for the costs of adopting automation solutions, embarking on process redesign, and developing innovative technologies or products.

With the right funding, business growth is easier

UOB works closely with government agencies and business leaders to offer the financing and digitalisation support that SMEs need. From business loans to digital solutions, we strive to help you achieve your goals and build resilience for the long term.

Ready to fuel your business growth? Reach out to us here.

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