Due to the fluctuations of COVID-19 cases, the economic climate can be uncertain for businesses in Singapore at times. Whether it’s a sudden decline in consumer spending or an unexpected supply shock from overseas manufacturers, there are businesses that had to close down as a result.
Fortunately, as part of Budget 2022, there will be several measures implemented to help businesses stay afloat and stabilise during this period.
Workers and businesses in certain segments of the economy experiencing slower recoveries can look forward to the help provided by the $500 million Jobs and Business Support Package.
This includes the Small Business Recovery Grant allocated for Small and Medium Enterprises (SMEs) hit hard by COVID-19. Eligible businesses are able to receive $1,000 per local employee, with the amount capped at $10,000 per firm. This only applies to firms that meet the all 3 criteria as follow:-
Additionally, sole-proprietors and partnerships who do not hire local employees will be given a one-off grant of $1,000. Bear in mind that the local business owner should be earning a net trade income of no more than $100,000. Hawker, market, and coffeeshop stallholders licensed by the Singapore Food Agency (SFA) will also be entitled to this payout if applicable.
You may be notified in the month of June 2022 if your firm is eligible.
First launched in March 2020, the Temporary Bridging Loan Programme (TBLP) will continue to be available for businesses until 30 September 2022. It was originally due to end on 31 March 2022. Businesses can still get access to working capital of up to $1 million from 1 April onwards. However, do note that there is a limit of $20 million for an overall borrower group. You may apply for the TBLP with any one of the Participating Financial Institutions.
Apart from the TBLP, the enhanced Enterprise Financing Scheme – Trade Loan (EFS – TL) has also been extended for another six months, with the cut-off date at 30 September, 2022. If you have finance trade needs in areas such as inventory financing and overseas working capital loan, you may obtain this loan of up to $5 million with repayment required within a year from its approval. This too can be done with a Participating Financial Institution.
To extend a helping hand to domestic projects for construction enterprises, the end date of the enhanced Enterprise Financing Scheme – Project Loan (EFS – PL) has been pushed to 31 March 2023. Once approved by the Participating Financial Institution, organisations in this sector can get up to $30 million for domestic projects and up to $50 million for overseas projects. Should you be considering this for a Working Capital Loan or Guarantee, note that you have a maximum of five years to repay the amount. Otherwise, it is up to fifteen years for fixed asset loans.
You can get more information on the loans and grants available for your business via the Enterprise Singapore website.
To help employees grow professionally and contribute more effectively to the company, you may also utilise the SkillsFuture Enterprise Credit (SFEC) of $10,000 credit for training purposes, to cover up to 90% of out-of-pocket expenses on qualifying cost for enterprise transformation programmes and workforce transformation programmes.
The firm must meet the following conditions over the qualifying period from 1 January 2021 to 31 December 2021:-
Unlike the above initiatives, you will not need to apply for SFEC. Enterprise Singapore will notify you by April 2022 if you are eligible for this programme. By providing skill-building opportunities, you are investing in your team and helping them reach their full potential. You may also consider the Productivity Solutions Grant that can help you adopt IT solutions into your business.
Over the past two years, business owners have had to become increasingly strategic in their decision-making process. While some businesses have managed to thrive in this economy, others have faltered.
To support your business, an experienced and reputable accounting firm can be a valuable partner in navigating these challenging times. Many individuals try to accomplish the accounting tasks without expert help and soon realise it’s impossible to keep up with everything while still running their company successfully. By entrusting your financial needs to expert accounting service providers, you can free up time and energy to focus on your business operations.
For more information, don’t hesitate to get in touch with Chartsworth today.