Enterprise Development Grant (EDG): Your FAQs Answered

The Enterprise Development Grant (EDG) is a game-changer for Singapore companies seeking to grow, innovate, and expand their business horizons. Under the three pillars of Core Capabilities, Innovation & Productivity, and Market Access, the EDG offers invaluable financial support to eligible businesses. But before you dive into the world of EDG, let’s unravel the frequently asked questions surrounding this grant to ensure you make the most of this opportunity.

What is the Enterprise Development Grant (EDG)?

The Enterprise Development Grant (EDG) is designed to help Singaporean companies advance, innovate, and explore international markets. It provides funding for projects that focus on upgrading business capabilities, boosting innovation and productivity, and expanding market reach.

How is EDG different from the Productivity Solutions Grant and the Market Readiness Assistance grant?

The Productivity Solutions Grant (PSG) and the Market Readiness Assistance (MRA) grant serve distinct purposes. PSG supports specific productivity solutions or equipment adoption, while MRA assists companies in their initial overseas market ventures. In contrast, EDG caters to companies’ growth and transformation needs by evaluating individual project proposals based on business plans and outcomes.

Who can apply for EDG?

To be eligible for the EDG, companies must:

• Be registered and operating in Singapore
• Have a minimum of 30% local shareholding
• Be financially capable of starting and completing the project

How much grant support can I receive? Is there a cap on funding?

EDG offers funding support of up to 50% of qualifying costs for SMEs and up to 30% for non-SMEs, with grant eligibility based on Group Revenue and Group Employment Size. The specific project categories may have additional eligibility conditions.

What are the supportable items and activities under EDG?

EDG encompasses three pillars:

1. Core Capabilities: Strengthening business foundations through strategy development, financial management, human capital development, service excellence, and strategic branding.
2. Innovation and Productivity: Supporting growth exploration, efficiency enhancement, and product development.
3. Market Access: Facilitating international ventures, mergers and acquisitions, pilot projects, standards adoption, and more.

Can projects with both domestic and overseas elements be supported under EDG?

Yes, EDG supports both domestic and international projects to help companies thrive.

Why are the supportable cost components under EDG limited to specific areas?

EDG focuses on substantial costs typically incurred by companies in capability building and internationalisation projects. Additional support components may be available for specific project areas.

When must an EDG-funded project be completed?

Most projects should conclude within 12 to 18 months, allowing outcomes to stay relevant in the dynamic business landscape.

How can I apply for EDG?

You can apply for EDG through the Business Grants Portal, requiring your company’s CorpPass for submission. Ensure you have essential documents such as:

1. Company registration details
2. Audited financial statements from the past three years, including the latest fiscal year
3. Project proposals, deliverables and timelines
4. Expenditure forecasts

Upon successful submission, the grant administration may reach out to you through the BGP should they need further clarification.

Can I reapply if my previous EDG application was rejected?

Before reapplying, consider the reasons for rejection. Projects misaligned with EDG intent or already commenced won’t be supported.

Can companies engage a related associate as the third-party consultant/vendor?

Suppliers and service providers should have no relationship with the applicant or its related companies.

What are worker outcomes?

EDG applications from April 1, 2020, onwards require commitments to improve worker outcomes like job creation, wage increment, job re-design, or staff training.

What does it mean to be in a financially viable position to start and complete the project?

Companies should have a reasonable turnover over the past three years, with audited accounts required during the grant application.

Is there a minimum annual turnover and employee size?

While not mandatory, a hypothetical turnover of at least S$400k and around 5 employees (excluding directors, partners, or owners) is advisable.

Are there KPIs for an EDG project?

Yes, SMEs must commit to improving worker outcomes, creating more jobs, or increasing wages from April 1, 2020.

Are startups eligible for EDG?

In general, startups are not eligible, but exceptions exist based on groundbreaking products. They are supported under another programme known as Startup SG.

Summary

The Enterprise Development Grant (EDG) empowers businesses to thrive, innovate, and reach new heights. Make your vision a reality with EDG’s generous support, and unlock your company’s potential for growth and transformation.

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