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

With a brand new year ahead, SMEs must gear up for a new set of opportunities – and challenges – in 2023. The business landscape ahead is shaping up to be a demanding one, as inflationary pressures rise and a global recession looms on the horizon. With Singapore’s GST hike kicking in from 2023, companies will also need to manage its impact on consumer spending and business expenses.

Thankfully, help is at hand for SMEs to tackle these challenges. To cushion the impact of rising inflation, the government has announced a S$1.5 billion support package for individuals and businesses. Forward-thinking SMEs can tap into a refreshed slew of grants and support schemes to drive growth amidst economic uncertainty.

All this adds up to good news for small businesses to weather the storm. To help you find the help you need, here’s an overview of the government grants and schemes that SMEs can benefit from in 2023.

Business Loans

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

• Enterprise Financing Scheme (EFS): Offered in partnership with participating financial institutions like UOB, this umbrella scheme by Enterprise Singapore covers financing for businesses across seven areas, from fixed assets to green growth.
  
  The SME Working Capital Loan features an enhanced loan quantum of S$500,000 per borrower till 31 March 2023, enabling SMEs to Improve their operational cash flow. Meanwhile, the Trade Loan has been similarly enhanced to help SMEs finance their trade needs, with the maximum loan quantum raised to S$10 million per borrower until 31 March 2023.

Grants for Overseas Expansion

For local companies planning to expand their global footprint, the government offers support through a range of grants and resources.

• 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 2022 to 31 March 2023, the programme will cover up to 80% of qualifying project costs for the food services and retail sectors.
• 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 70% of eligible costs related to overseas market promotion, business development, and market set-up, capped at S$100,000 per company per new market.
• 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.

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 companies adopting digital solutions to automate their workflows, this grant offers funding for up to 70% 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 80% of the adoption costs for advanced technologies like AI and blockchain, as well as integrated solutions.

Financial Support for Manpower

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

• Progressive Wage Credit Scheme (PWCS): Introduced in Budget 2022, 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 50% co-funding ratio in 2023. For wage increases up to a S$3,000 gross monthly ceiling, co-funding support will run till 2024.
• Jobs Growth Incentive (JGI): Newly extended to March 2023, the JGI supports companies’ efforts to expand local hiring in a difficult labour market. In Phase 5, the scheme is exclusive to persons with disabilities, ex-offenders, and mature local persons aged 40 and above who have been unemployed for at least six months. For these new hires, the government will co-pay 20% of the first S$6,000 in gross monthly wages for the first six months.

Funding for Employee Training

Lifelong learning is more crucial than ever in our fast-changing world, and the government offers a slew of incentives to support upskilling. Keep your team’s skills sharp and boost your manpower with these 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. Qualifying enterprises can benefit from up to 90% funding of programme fees.
• SkillsFuture Career Transition Programme (SCTP): Launched in Budget 2022, 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. Subsidies are available for up to 90% 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.

Financial Support for Energy

Soaring electricity prices are hurting the bottom line of many SMEs, with F&B businesses reporting a jump in electricity bills by 40% to 472%. Moving towards energy efficiency can benefit both your profits and the planet with these grants:

• Energy Efficiency Grant: This newly 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.
• Enterprise Development Grant (EDG): Under the Innovation and Productivity pillar, the EDG provides support for companies to improve efficiency and optimise resource usage in areas like water, energy, and carbon. From 1 April 2022 to 31 March 2023, the programme will cover up to 80% of qualifying project costs for the food services and retail sectors.

With the right funding, business growth is easier

With market uncertainty on the rise, SMEs will need the right support to keep growing in challenging times. UOB offers financing and digitalisation support to power your business in a brand new year, such as:

UOB eBusiness Account: The 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. Bank on the go with free access to UOB SME app, our digital banking experience for businesses.

UOB Business Loan: Improve your cash flow with a bundled loan that combines Enterprise Singapore’s SME Working Capital Loan and UOB’s Business Loan. With no collaterals required, SMEs can easily secure funding of up to S$800,000 at preferential rates. Submit your online application in five minutes, and hear from us within one business day.

UOB BizSmart: This suite of digital solutions empowers your SME to automate processes and make smarter decisions. Give your operations a digital edge with accounting, HR, digital marketing, and POS tools from our trusted solutions partners. Under the Start Digital Pack, you can sign up for up to two solutions at no cost for a maximum of six months.

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