The Enterprise Development Grant (EDG) is a government initiative in Singapore designed to help businesses grow, innovate, and improve their overall capabilities. However, navigating through the EDG funding criteria can sometimes be a bit complex. Therefore, this blog will break down the essential requirements for applying for EDG funding in a simple and easy-to-understand way. By the end of this blog, you’ll have a clear idea of whether your business qualifies for the EDG and how to meet its criteria effectively.
What is EDG Funding?
Before diving into the requirements, let’s first understand what the EDG is all about. Enterprise Singapore EDG grant introduced the Enterprise Development Grant to support local companies in transforming into more competitive entities. The grant covers three main areas:
- Core Capabilities: Helping businesses strengthen their foundational aspects, such as financial management, brand and marketing strategies, and human capital.
- Innovation and Productivity: Encouraging companies to explore new ways of doing things, from process redesign to automation.
- Market Access: Assisting companies that aim to expand into international markets through market research, overseas marketing efforts, and more.
Now that you know what EDG funding is, let’s explore the essential requirements you need to meet to apply successfully.
Key Benefits of EDG Funding
Understanding the benefits of EDG funding eligibility criteria can help you appreciate why it’s worth applying for. Here are some key advantages:
- Enhanced Business Capabilities: The EDG helps businesses strengthen their core areas such as financial management and human resources, leading to more robust and efficient operations.
- Increased Innovation: By supporting projects that focus on new technologies and process improvements, the EDG fosters innovation within your company, keeping you competitive in the market.
- Global Market Expansion: The grant provides resources for market research and overseas marketing efforts, helping you explore and enter new international markets.
- Expert Guidance: With the requirement to involve third-party consultants, you gain access to expert advice and support, which can be crucial for the success of your project.
- Financial Support: By covering up to 80% of qualifying costs, the EDG reduces the financial burden on your business, making it easier to undertake significant projects and initiatives.
Who Can Apply for EDG Funding?
The first step in understanding the EDG funding criteria is to know whether your business qualifies to apply. The eligibility criteria are quite straightforward, making it easier for businesses to determine their chances of approval. However, it’s crucial to meet all the criteria to avoid delays or rejection.
1. Registered and Operating in Singapore
- Your business must be registered and operating in Singapore. This means it must have a valid business registration number (ACRA), and you must carry out substantial activities within Singapore.
- Additionally, the business must not be a sole proprietorship. It should be registered as a company or limited liability partnership.
2. Minimum 30% Local Shareholding
- At least 30% of the company’s shares must be held by Singaporean citizens or Permanent Residents. This ensures that the EDG funding primarily benefits local businesses.
3. Financially Stable Business
- Your business should demonstrate a healthy financial standing. The evaluation will use your financial statements to ensure that your company can meet the financial commitments related to the project.
However, these are just the basic requirements. More factors influence whether your application will be approved.
What Projects Qualify for EDG Funding?
Once you’ve confirmed that your business meets the initial criteria, the next step is to determine whether the project you’re proposing is eligible for EDG funding. The grant is specific in terms of the types of projects it supports, so it’s essential to understand this aspect clearly.
1. Aligned with Grant Objectives
- Your project should also align with the mission of the EDG, which includes enhancing the core capabilities, more innovation, and expansion in market access. In other words, grow your business, make it more efficient, or expand into other markets.
- The project must not involve daily operational costs, and instead, it should focus on business transformation. For example, upgrading your technology or redesigning your operational processes qualifies, while general expenses such as utilities and rent do not.
2. Defined Timeline and Outcome
- Every EDG-supported project must have a clear timeline and a well-defined set of goals. This is important because the authorities want to see measurable progress that directly correlates to the grant’s objectives. You’ll need to submit a detailed project plan outlining the start and end dates, as well as the expected results.
3. Third-Party Involvement
- Another requirement for EDG funding is that the project must involve third-party consultants or vendors. This ensures that the business will gain valuable external expertise, which is crucial for achieving project goals. Be sure to engage only approved or recognized third-party consultants to avoid any complications in your application.
How Much Funding Can You Get?
After understanding who can apply and what projects qualify, the next natural question is: how much funding can your business receive? The EDG offers funding that typically covers up to 80% of qualifying costs, but there are some nuances.
1. Qualifying Costs
- The grant will cover costs directly related to your project, such as consultancy fees, software and equipment, and internal manpower expenses. However, not all costs are covered. The EDG will not support day-to-day business expenses like salaries unrelated to the project, raw materials, or rental costs.
2. Up to 80% Funding
- For most businesses, EDG funding covers up to 80% of qualifying costs. However, this percentage can vary depending on the project’s scope and its alignment with the grant’s strategic objectives. Therefore, it is essential to consult with Enterprise Singapore to get a clearer idea of the exact funding amount for your specific project.
3. Co-Funding Requirement
- EDG is a co-funding scheme, so your business must cover the remaining portion of the costs not covered by the grant. This portion usually amounts to 20%, but it can vary depending on the project and the available grants.
How to Apply for EDG Funding?
The application process for EDG funding involves several steps, so it’s crucial to be prepared to ensure a smooth submission. Below are the essential steps for applying for the EDG grant:
1. Prepare the Required Documents
- Start by preparing your company’s financial statements, project proposals, and third-party consultant quotations. These documents are essential to support your application.
- Additionally, prepare your company’s ACRA registration and evidence of shareholding to prove that you meet the local shareholding criteria.
2. Submit via the Business Grants Portal
- You submit EDG applications entirely online through the Business Grants Portal. Please register on the BGP, complete the forms, upload the required documents, and submit your project proposal.
3. Follow Up and Review
- Once submitted, your application will go into review. Be prepared to answer follow-up questions and provide additional information if needed. The review process can sometimes take a few weeks, so best to be patient and responsive during this time.
4. Project Approval and Disbursement
- After the successful application, it means you get approval for the grant. Once this is done, you can implement your project and realize your dream. The cash disbursement usually takes place upon the completion of the specific project milestone and verification by Enterprise Singapore.
Conclusion
Understanding EDG funding criteria is, therefore, of the essence for any business looking forward to transformation and growth in Singapore. Meeting the eligibility criteria, developing a well-structured project, and working out the application process efficiently will serve as ways your businesses can tap into the EDG for enhanced capabilities and reach new markets effectively. Keep in mind also that the process might look uphill at the beginning but certainly will be well worth it.
EDG funding could be just that boost that one needs to grow an enterprise. Follow the guidelines, put in a good application, and make that next step into business transformation.
