Supplementary Budget 2020 – 9 Helpful Financing Initiatives

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What does it mean for your business?

As your business deals with new challenges and complexities, how can you stay nimble and embrace transformation to take advantage of emerging growth opportunities?

Budget 2020 introduces new measures and initiatives to help businesses develop new capabilities, deal with short-term challenges and set the stage for long-term growth.

Find out more.

Supplementary Budget 2020

Announced on 26 Mar, 6 Apr and 26 May

Special Situation Fund for Startups (SSFS)

  • Financing support for promising early-stage to late-stage startups with strategic capabilities that can contribute to Singapore’s national priorities.
  • EDBI and SEEDS Capital will invest in selected startups with private sector co-investors on a 1:1 basis.
  • Scheme will end when the funds are fully committed or by 31 October 2021, whichever is earlier.
supplementary budget

Digital Resilience Bonus

  • Support for businesses to improve competitiveness and productivity through digitalisation, and adapt to safe management practices.
  • As a pilot, the Bonus will target businesses in F&B and Retail that are most affected by safe distancing requirements.
  • Eligible businesses will receive up to S$10,000 if they adopt baseline digital solutions such as PayNow Corporate and e-invoicing, digitalise business processes, create online channels as well as implement data mining and analytic solutions.

For more information, please contact IMDA at info@imda.gov.sg.

Enterprise Development Grant (EDG)

SUPPLEMENTARY BUDGET

  • Maximum support level will be raised from 70% to 80% from 1 April 2020 to 31 December 2020.
  • For firms that are most severely impacted by COVID-19, the maximum support level can be further raised to 90% on a case-by-case basis.
  • Unionised enterprises and e2i partners under the Labour Movement are eligible to receive an additional 10% funding support, subject to NTUC e2i’s assessment.

Productivity Solutions Grant (PSG)

  • Greater support for more sector-specific solutions and a wider range of pre-scoped solutions for businesses beyond IT solutions and equipment.
  • Expanded scope to include job redesign consultancy services.

SUPPLEMENTARY BUDGET

  • Maximum support level will be raised from 70% to 80% from 1 April 2020 to 31 December 2020.
  • Expanded scope of solutions to help enterprises implement COVID-19 business continuity measures:
    • Online collaboration tools
    • Virtual meeting and telephony tools
    • Queue management systems
    • Temperature screening solutions

SG Together Enhancing Enterprise Resilience (STEER) Programme

  • Programme will support funds set up by the Trade Associations and Chambers (TACs) or industry groupings*, with the aim of helping businesses tide over the challenges arising from COVID-19, and to push on with transformation efforts in preparation for the economic recovery.
  • Supportable uses of the fund include grants for business sustenance, business growth, and capability upgrading.
  • Valid from 3 March 2020 to 2 March 2021.

SUPPLEMENTARY BUDGET

  • From 1 April 2020, Enterprise Singapore will match S$1 for every S$2 raised by such industry-led initiatives, up to S$1 million per fund.

For more information, contact us at enquiry@enterprisesg.gov.sg

*An industry grouping is defined as a group of at least five companies collaborating to set up a fund, with an independent legal entity set up and an independent 3rd party secretariat supporting the management of the fund.

Enterprise Financing Scheme – SME Working Capital Loan (EFS WCL)

  • SMEs will receive greater financing support to bridge their working capital gaps.

SUPPLEMENTARY BUDGET

  • Maximum loan quantum will be raised from SS$600,000 to S$1 million.
  • Risk-share from Government will be increased to 90% from 80% (previously at 50-70%)
  • Valid from 8 April 2020 to 31 March 2021
  • SMEs may request for deferment of principal repayment for one year, subject to assessment by participating financial institutions.

Enterprise Financing Scheme – Trade Loan (EFS TL)

SUPPLEMENTARY BUDGET

  • Maximum loan quantum will be increased from S$5 million to S$10 million.
  • Risk-share from Government will be increased to 90% from 80% (previously at 50-70%)
  • Valid from 8 April 2020 to 31 March 2021

Temporary Bridging Loan Programme (TBLP)

  • Financing support to alleviate cashflow needs of enterprises affected by the COVID-19 outbreak.

SUPPLEMENTARY BUDGET

  • Programme will be expanded from the tourism sector to all sectors from 1 April 2020.
  • Maximum loan quantum will be increased from S$1 million to S$5 million, with interest rate capped at 5% per annum.
  • Risk-share from Government will be increased from 80% to 90%
  • Valid from 8 April 2020 to 31 March 2021
  • SMEs may request for deferment of principal repayment for one year, subject to assessment by participating financial institutions.

Loan Insurance Scheme

SUPPLEMENTARY BUDGET

  • Increased support for the LIS insurance premium from 50% to 80%.
  • Valid from 1 April 2020 to 31 March 2021.

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