In the second installment of our funding series, we will look at government-backed cash grants, which can be pretty useful for entrepreneurs who are digging deep into their pockets to finance their business.
These grants are doled out by various government agencies to fund start-ups which are still building up their business or are at other stages of their growth. They are usually given out to supplement investments in technology or research and development (R&D). Some are also given out for social enterprise start-ups, which are businesses which provide the the disadvantaged with employment and training opportunities.
These cash grants either match a certain amount to the capital raised by the start-up, or grants a certain percentage of the required funds. It may even cover the full funding, capped at a certain amount. Unlike equity financing scheme, cash grants given out do not require the start-up to sell ownership to their financiers.
Read on to find out more about the common grants in Singapore.
EARLY STAGE FUNDING
ACE Startups Grant
The ACE Startup Grant gives out a maximum of S$50,000 in co-matching funds for innovative businesses. It matches S$7 for every S$3 raised raised by the entrepreneur.
Applicants must be first-time entrepreneurs who are either Singapore citizens or permanent residents. They must also hold at least 51% equity in the business. The business must be in its early stage i.e. 0 – 6 months from the time of registration or incorporation.
Technology Enterprise Commercialisation Scheme (TECS)
TECs is for technology-oriented start-ups and small and medium enterprises who want to develop their technology ideas at conceptualisation stage to trial test their prototypes.
It is only for Singapore-based companies, which can get up to $250,000 to develop ideas and up to $500,000 to carry on more research and development.
ComCare Enterprise Fund (CEF)
The ComCare Enterprise Fund finances up to 80% of project costs for social enterprise start-ups which help disadvantaged Singapore citizens become self-reliant by providing employment and training.
Eligible persons include ex-offenders, less educated and older citizens as well as persons recovering from psychiatric illnesses. It is capped at $300,000.
It is applicable for all Singapore-based businesses and organisations.
ideas.inc Business Challenge
This cash grant doles out amounts up to S$65,000 for first-time entrepreneurs between 18 and 26 years old to commercialise their products and services.
They must form teams of 2 to 6 members, with at least one Singapore citizen or permanent resident as a team member. They must also be prepared to incorporate a private limited company with business activities wholly or mainly based in Singapore.
So are you eligible for any of these grants? They’re yours for the taking. Good luck!
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