5 Government Grants for Singaporean Businesses Affected by COVID-19

With financial hurdles that the COVID-19 is causing to businesses, you need every support you can to combat the crisis. 

Face these challenges head-on. Sustain your Singaporean business during the crisis and bounce back smoothly after. 

Take advantage of these government support schemes – from tax relief, development support, and financing: 

5 COVID-19 Grants to Sustain Your Singaporean Business

1. Enhanced Enterprise Development Grants

With a crisis ongoing, you may think that this is an odd time to do some business revamps. But it’s not. 

This is the best time to seek opportunities that would keep your business functional even during a virus outbreak, like COVID-19. The best example is getting your business online. 

The Enterprise Development Grant is an existing program which aims to help enterprises transform effectively, such as upgrading and improving their business model. 

With the impact of the COVID-19 crisis, the government is increasing the support level by 70-80% starting April until December 2020. Meanwhile, severely damaged enterprises get an increase of up to 90%. 

Check qualifications and requirements here.

2. Tax grants and exemptions

The corporate income tax rebate and other tax treatments aim to help businesses sustain their cash flow. 

Here are some of them: 

Tax rebate

Businesses will get a 25% rebate on tax payable. You can use this benefit to spend on more urgent costs instead. 

Tax deferment

Automatic three-month deferment for all companies with corporate income tax payments due in April to June this year. The payments will be collected in July to September instead.  

There will also be no increase in charges for a year, specifically from April 2020 to March 2021. 

Extended tax filing

Businesses, such as sole proprietors and partnerships, can file their income tax until May 31, 2020. 

Learn more about tax relief programs here.

3. Enhanced Working Capital Loan

The Working Capital Loan is an existing financing scheme implemented by the government in 2016. Its purpose is to support SMEs in Singapore with their cash flow needs. 

To address the COVID-19 crisis, they’re enhancing the support. This includes: 

• Raising the maximum loan quantum
• Increasing the government’s risk-share from 70% to 80%  

Any Singapore-based enterprise from all industries can claim this support for their capital needs. Learn more here.

4. Job Support Scheme

The financial effect of COVID-19 has led some businesses to cut costs and manpower. But it shouldn’t come to that. 

The Job Support Scheme aims to help businesses cover local employees’ salary. Through payouts, the government will co-fund gross monthly wages for every employee for nine months. They will also raise the monthly wage cap per employee to $4,600.  

The first payout is expected in April. The other two payouts will be in July and October 2020.  

Also, the amount of co-funding depends on the business sector.  

Check for your business here.

5. Support for businesses affected by leave of absence

With stay-at-home requirements due to COVID-19, remote working is now the best option for businesses to continue operations. But some are unable to provide resources for a remote working setup, which results in employees going on leave. 

The Ministry of Manpower (MOM) is providing support to employers with SGD100 daily for each employee who’s taking leave of absence. 

Learn more here. 

You don’t have to face it alone 

Sustain your business through extra support. Use these opportunities to help you get through the pandemic. In this time of crisis, we’re all in this together. 

Check out our business continuity and opportunity guides here.