Enterprise Singapore (ESG) Enterprise Development Grant (EDG) Frequently Asked Questions (FAQ)
We are experienced consultants who have been administering Capability Development Grant (CDG) by SPRING. We hope to give you the latest updates on the new grant, Enterprise Development Grant (EDG) by Enterprise Singapore.
What is EDG?
EDG is the short form for Enterprise Development Grant. This grant was announced in the Annual Budget 2018. In short, EDG is a grant for established local SMEs (Small Medium Enterprises) to help them grow and transform their businesses.
How much funding can I get?
You can get funding up to 90%. However, most SMEs will get up to 80% funding only. Prior to COVID-19, the original support level was 70%. To fight against the impending recession, the Supplementary Budget aka Resilience Budget 2020 raised the support level to 80%. Only SMEs severely affected by COVID-19 will get the maximum support level of 90% on a case-by-case basis and as determined by ESG.
When will EDG end?
Originally, the new support level will end 31st December 2020. However, ESG extended this to 30 September 2021.
Who approves EDG?
Enterprise Singapore, ESG in abbreviated form, gives the final green light to all EDG grants.
What is the maximum grant?
That really depends on the scope of the project. The grant is correlated to the size of the company in terms of turnover and manpower. We do not have the exact algorithm nor science on this. Neither ESG will give you a definite answer on this.
Can you give an actual number that I can work with?
Ok, this is strictly based on our experience with CDG and based on some assumptions.
Usually, projects are about $40k (based on the previous CDG Lite).
But, there are projects way above $40k, hitting above six figures, depending on the scope of work.
What kind of projects are covered under EDG?
The projects can fall under these scope:
1. Core Capabilities
a) Strategic Brand and Marketing Development
b) Business Strategy Development
c) Human Capital Development
d) Service Excellence
e) Financial Management
2. Innovation and Productivity
a) Process Redesign
b) Product Development
3. Market Access
a) Overseas Marketing Presence (OMP)
b) Market Access
c) Pilot Project and Test Bedding
d) Mergers and Acquisitions (M&A)
Am I eligible for CDG?
To be eligible, you are required to
1. Have a registered company and operating in Singapore
2. Have at least 30% local shareholding
3. Be in a financially viable position to start and complete the project.
And if you come from a big organisation, your organisation or group holdings should
1. Have less than $100 million revenue
2. Employ less than 200 employees.
What does it mean by "Be in a financially viable position to start and complete the project"?
Based on our previous experience with CDG, a company should have a reasonable amount of turnover for the past three years. The 3 years audited accounts will be required when you apply for the grant.
Is there a minimum annual turnover?
Based on our previous experience with CDG, a working hypothetical figure should be at least S$400k. A $1 million turnover will be ideal.
Is there a minimum employee size?
Our experience tells us that it should not be zero or just one. And the project sum must justify the size of the company. A good number should be 5 employees and they should not include directors, partners or owners.
Is there a KPI (Key Performance Indicator) for an EDG project?
Yes. With effect from 1 April 2020, SMEs will need to commit to improving workers' outcome, such as creating more jobs or increasing wages.
So, are startups eligible for EDG?
In general, startups are not eligible for EDG. If you are a startup, you can look at the ecosystem meant for startups: Startup SG network.
How long does a typical EDG project take?
Depending on the scope of your project, the timeline could range from 4 to 12 months. This includes time to establish proposed objectives and conduct research. Our typical branding project takes about 4 to 6 months.
What do you mean by certified consultants?
From 1 January 2017, if you engage consultants, they need to be certified management consultants. SMEs should ensure that consultants involved in EDG must possess Enterprise Singapore-recognised certification; failing which Enterprise Singapore reserves the right not to support the consultancy fees incurred.
Are Firefish consultants certified?
Yes! Consultants from Firefish are certified and accredited by TÜV SÜD PSB and this certification is recognised by Enterprise Singapore.
Is the application process easy?
The application process is not particularly onerous. You can easily apply EDG at Singapore Business Grants Portal.
How is the application process like?
We have created an EDG Walk-through so that you will understand the process and requirements better. Click here to view the entire EDG Walk-through.
It looks complicated. Can you help us fill the application form?
If you have officially appointed us as your consultant, we are more than happy to guide you along.
What other supporting documents do we require for the application?
You need the following:
1. Your project proposal
2. Latest ACRA search results
3. Past 3 years audited financial statements (including latest year)
2. Our consultant's proposal and
3. Our consultant's certifications.
Can you help us write the project proposal?
If you already appoint us as your consultant, we will write the project proposal for you.
How long do I have to wait to know the results of my application?
There is no fixed timeline. It may take 1 to 2 months. Do understand Enterprise Singapore is running a lean team to handle EDG.
Can I start on an EDG project whilst applying for EDG?
In general, no. It is best to obtain an official letter of offer from Enterprise Singapore before commencing the project.
What does it mean?
It means that you should not have already begun on the project before your application has been approved. Neither should you have made payment to service providers or suppliers involved in the project.
Can I claim Productivity Innovation Credit (PIC) together with EDG?
No. PIC has officially ended.
Will you help us to do claims?
After you engaged our consultancy services, we will advise you accordingly how to make a claim.
How can Firefish help us with EDG?
We will guide you through the entire process step by step.
What does Firefish actually do?
Good question. Our core businesses are in branding and marketing. We are able to help you transform your brand for the future as well for globalisation. We can also advise you on your marketing strategy.
How many EDG Grants can I apply for?
In theory, there are no restrictions on how many EDG Grants you can apply for. Currently, ESG allows you to apply and work on more than one EDG project at any given time. However, you can only apply for an EDG grant in a specified area once. This means that if you are awarded an EDG grant for Branding and Marketing once, you are no longer eligible for another EDG grant under the same category that is Branding and Marketing. However, you can still apply for EDG grants under other areas.
What about Productivity Solutions Grant (PSG)?
Productivity Solutions Grant (PSG) is a grant that supports Commercial Off-The-Shelf Solutions (COTS). Basically, COTS are more affordable and require little or no customisation work. It covers up to 90% of the solution cost. Click here more information about PSG. If COTS do not meet your needs and you require a bespoke solution for your business, do contact us!
Where can I get the latest updates on EDG?
The latest information can be found on Enterprise Singapore's website.
Where can I apply EDG?
Similar to CDG, you can apply EDG at Singapore Business Grants Portal.
Can I talk to someone regarding EDG?
On first base, you can either reach out to certified consultants (like us) or SME Centres. We are more than happy to help and answer all your questions regarding EDG. Just fill in the form below.
What is the latest news on Business Excellence under EDG?
Business Excellence (BE) certification with the respective Singapore Quality Class (lionhead logo) will cease by end September 2020. Awards under BE will cease immediately. However, SMEs can still apply for Business Strategy under EDG as well as used the BE framework for their business.
Still need advice on EDG?
EDG (Enterprise Development Grant) is administered by ESG (Enterprise Singapore).
All information herein is subjected to change.
EDG grants are subjected to approval by EDG.