Is Your Business Eligible? Key EDG Funding Criteria Explained

A business expansion usually involves some form of fund support. In Singapore, the Enterprise Development Grant is the best option that could help cover a portion of your expenses if your business plan involves expansion upgrading the operation or enhancement of your capabilities. A business cannot always qualify under this grant; hence knowledge of eligibility criteria is pertinent. To be able to determine if your business qualifies for the Enterprise SG Grant or even if you could apply for one, the guide walks through the main EDG funding criteria in Singapore:

What is EDG Funding?

The funding provided is from EDG or Enterprise Development Grant offered by Enterprise Singapore, which is a government agency working to assist local businesses grow. Under this grant, the help offered to the businesses will be for upgrading, innovation, and also expansion of markets. It helps upgrade companies’ capabilities for long-term growth. If you’re enhancing your business strategy, introducing new technology, or exploring overseas markets, up to 70% of approved costs are covered.

• Tips: The EDG focuses on three key areas—Core Capabilities, Innovation and Productivity, and Market Access. Make sure your project aligns with one of these categories.

1. Company Registration and Location

Before applying for EDG funding, one of the first things you need to check is whether your business is registered in Singapore. The grant is only available to companies that are legally registered and operating in Singapore. This means that businesses that have not registered in Singapore nor carry out any local activities will not qualify.

• Tips: Register your business with the Accounting and Corporate Regulatory Authority.(ACRA).

2. Local Shareholding Requirement

Another important factor is local ownership. At least 30% of your company must be owned by Singaporeans or Permanent Residents. Thus, it is an EDG-funded grant that focuses on developing the economy of Singapore by supporting local ownership.

• Tips: Check the shareholding structure of your company and see if you have fulfilled the 30% requirement for local ownership.

3. Financial Capability and Sustainability

EDG funding supports projects leading to long-term business growth, but your company must demonstrate financial health and sustainability. This is important because Enterprise Singapore wants to ensure businesses can complete their proposed projects. Therefore, you will need to submit financial statements to show that your company has the resources to carry out the project.

• Tips: Ensure your financial statements are up-to-date, and be ready to prove that your business is stable and capable of growth.

4. Aligned Project Scope

The project you are seeking funding for must fall under one of the three main categories supported by the EDG: Core Capabilities, Innovation and Productivity, or Market Access. Your project must align with these areas, as Enterprise Singapore will only approve projects that contribute to the overall growth and improvement of your business.

• Tips: Clearly define the scope of your project and ensure it fits into one of the three focus areas of the EDG.

5. Project Readiness and Feasibility

Before applying, assess the feasibility of your project. Enterprise Singapore looks for realistic projects, with clear timelines, deliverables, and measurable outcomes. Your project should not only aim to solve a business problem but also show that it can be completed within a reasonable time frame.

• Tips: Prepare a detailed project plan that includes key milestones, deadlines, and expected outcomes.

6. Qualified Service Providers

When applying for EDG funding, you must engage qualified service providers to help with your project. These could include consultants, training providers, or other vendors. The service provider you choose must have the relevant expertise to carry out the project effectively. Enterprise Singapore typically requires you to include details about your service providers when submitting your application.

• Tips: Select reputable and experienced service providers who specialize in your project area.

7. Clear Business Outcomes

Enterprise Singapore wants to see that the projects they fund lead to measurable improvements in your business. This means that your project should have clear, achievable goals. Whether it’s boosting productivity, expanding into new markets, or increasing innovation, you must outline how the project will benefit your business in the long run.

• Tips: Set specific goals for your project, such as revenue growth, improved efficiency, or market expansion.

8. Past EDG Funding or Other Grants

If your business has already received EDG funding or other grants from Enterprise Singapore, you may still be eligible for additional funding, but there are limits. Each project must be new, and funding cannot be used for projects that are already completed or in progress.

• Tips: Keep track of past grants and ensure any new project proposal is distinct from previously funded initiatives.

9. Supporting Documents

Applying for EDG funding requires the submission of several supporting documents. These include your company’s financial statements, project proposal, details of your service providers, and a clear breakdown of costs. Enterprise Singapore uses these documents to assess whether your project is viable and whether your company meets all the necessary criteria.

• Tips: Prepare all required documents ahead of time to avoid delays in the application process.

10.  Application Process and Timeline

The application process for EDG funding involves several steps, starting with an online submission through the Business Grants Portal. Once you submit your application, Enterprise Singapore will review your proposal and supporting documents. The review process typically takes several weeks, depending on the complexity of the project. After approval, you will receive the grant disbursement in stages based on your project’s progress.

• Tips: Start the application process early and monitor the status of your application regularly.

Conclusion

Any business intending to acquire the Enterprise SG Grant should first and foremost know the EDG funding criteria in Singapore, such that your business qualifies for the criteria requirements that include local shareholding, financial capability, and scope alignment of the project. Whether it is a business looking to expand its capabilities or innovate, this guide will help the application process and enable getting the right amount of funding to get on track with the growth plan. Preparation and planning will be all that’s necessary to make this possible.