- SME Matters: Why SMEs in Singapore Should Consider Having Multiple Business Bank Accounts
- Banker's Guarantees vs Insurance Bonds: What You Need To Know In 2024
- Do You Really Need A Business Loan Broker In Singapore? - Loan Broker Singapore
- Which Digital Bank Account Is Most Valued For Buck For SMEs? ANEXT Bank Vs GLDB Vs MariBank
- How to Get Small Business Loans with Low or Smallish Revenue in Singapore
- Why BNPL Is Not As Sustainable As You Think? - A Perspective On Why Pace Failed
- From Values to Value: How Far East Organization Integrates Christian Principles in Business
- Comprehensive Guide to Data Protection Officer - What SME Owners Need to Know [2023 Edition]
- Comprehensive Guide To Understanding Moneylenders Credit Bureau Report (MLCB)
- Business Characteristics: Solopreneur, Entrepreneur And Small Business Owner
Step-by-Step Guide On How To Make a Claim Under The Productivity Solutions Grant 2023 Edition
Viewed by 13,947 Smart Towkays
Step by Step Guide On How To Make A Claim Under the Productivity Solutions Grant- 2023 Edition
Article was published on 12 May 2021 and updated on 20 Feb 2023
Singapore enterprises which find themselves requiring monetary assistance to modernise, digitise, and digitalise their business operations will no doubt have heard about the Productivity Solutions Grant (PSG).
The PSG supports companies in the adoption of pre-scoped IT solutions and equipment that enhances productivity and business processes.
It covers sector-specific solutions including the retail, food, logistics, precision engineering, construction, and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.
Due to the Covid-19 pandemic, the Government enhanced PSG support in 2020, such that funding for the adoption of said solutions is up to 80 percent. This will last until 30 September 2021, whereupon the PSG will revert back to the default levels of up to 70 percent funding support.
As previously covered, companies can apply for the PSG if they are registered and operating in Singapore, with the information technology solutions or equipment’s, lease and purchase also in Singapore. In addition, for some selected solutions, the company is also required to have minimum 30% local shareholding and with group annual sales turnover less than S$100 million or with the company employing less than 200 employees.
To apply for the PSG, companies will have to submit an application on the Business Grants Portal (BGP) using their CorpPass account. If a company’s application has been approved, it can get started on the project with the solutions provider and file a claim after.
Do you know that Productivity Solutions Grants of S$30,000 is 'reset' every 31st March?
SMEs are allowed to submit more than one application each year under the Productiviy Solutions Grant (PSG) and are subjected to a grant cap of S$30,000 starting from 1st April to 31st March each year.
Below is a step-by-step guide on how to file said claim.
How to file a claim under the PSG?
Step 1: Logging in and filing a claim
You will first need to go to https://www.businessgrants.gov.sg/ and log into the Business Grants Portal with your CorpPass account.
Under “My Grants”, select the “Claims” tab.
Once you are at the “Claims” section, select “File new claim”. If you have already done so previously but did not complete the claim application, you can complete your existing application by clicking on “Drafts”.
Step 2: Claims Information
You will need to fill in all the information that is required, which consists of your contact details, the claim information, and the business outcomes of having adopted the new solution.
Under “Claims Information”, there is a section that requires you to enter your software license numbers or equipment serial numbers. You may wish to contact your PSG solutions provider if you require assistance with this.
There is also a section for the uploading of the stated supporting documents.
Enter the number of instalment payments or subscriptions as per the agreement with the solutions provider as well as the amount of actual expenses paid.
Step 3: Business Outcomes
Under “Business Outcomes”, you are expected to state how much your company will be saving after adopting the new solution, as well as how much productivity gains the business will have made. Take note that the information to be keyed in are in percentage values.
There will also be a section allowing for 500 characters to be typed for providing feedback or reasons for any changes in the projection.
Step 4: Declare and Review
The final step is to fill out a short questionnaire that is meant to serve as a final reminder for you to review all the requisite components of your claim. If you are confident that you are in compliance with all the requirements after making all the declarations, you may proceed to select “Review” at the end of the page.
On the next page after that, tick the checkbox and click on “Submit” to complete the application process. You are done!
FAQs for Productivity Solutions Grant
Companies can apply for PSG if they meet the following criteria:
Registered and operating in Singapore
Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
(Selected solutions only) An SME with minimum 30% local shareholding; AND Company's Group annual sales turnover less than S$100 million, OR less than 200 employees
To apply for the PSG, companies will have to:
Visit Tech Depot to access the list of supportable solutions and identify relevant solutions that they may want to procure
Obtain quotations from vendor (unsigned). IT solutions and vendors must be pre-qualified under the grant
Company should not have signed any contract or made any payment before submitting the PSG application
Submit an application on the Business Grants Portal (BGP) at www.businessgrants.gov.sg. Companies will need to have a CorpPass account to transact on the BGP
What documents should a company have prepared when applying for the Grant?
All the supporting documents your company is required to submit while applying for the Productivity Solutions Grant (PSG) is as follows:
A signed quotation/contract acceptance letter or a purchased order.
A bank statement indicating that payment was made
The license number of a software tool that you’ve used for more than one month
A screenshot displaying your company’s name or that of your IT solution
A copy of a cheque payment or receipt
Can unlisted IT solutions or vendors who are not pre-approved be supported?
No, companies can only be supported on pre-scoped packages by pre-approved vendors. For equipment, there is no pre-approved vendor, but the equipment must minimally meet the specifications provided.
What are the supportable costs of adopted equipment/IT solutions?
Unless otherwise stated, only the actual purchase/lease/hire cost of the pre-approved equipment or pre-approved IT solution package is supportable. This excludes other related administrative fees/charges, e.g. delivery fees, installation.
Can the equipment or IT solution be used for the company’s subsidiary or related party?
No, the equipment or IT solution should only be used by the applicant entity and not by a related party.
How long must the purchased equipment or IT solution be held for?
The holding period for the equipment or IT solution is one year from the date of final claim disbursement.
How many PSG grants can a company apply for?
Companies can put in more than one PSG application depending on business needs. However, support can only be extended for one package per solution category per deployment location.
Supportable applications are:
The purchase of one unit of either an equipment/IT solution per deployment;
Subsequent purchase of the IT solution to be deployed at a different location
This means that if the Applicant applies subsequently (i.e. after the first application) for the same IT solution to be deployed at the same location, this application will be rejected.
In addition, applications supported by the Enterprise Singapore are also subjected to a grant cap of S$30,000 – for each SME, starting from 1st April to 31st March every year.
Can a company submit concurrent applications?
Yes, this is possible.
Can a company engage a related associate as the third-party vendor?
The Applicant shall ensure that the vendors selected do not have any relationship, connection, associated or dealings with the Applicant or its related companies or their directors and common shareholders. Applicants will be required to declare any relationship with vendors.
What is the annual grant cap for PSG?
Each company supported by ESG is subjected to an annual grant cap of S$30,000 for solutions supported by ESG, starting on 1 April and ending on 31 March the following year.
What happens when the grant cap is fully utilised?
Companies that have fully utilised their grant caps will not be eligible for further support within the validity period of the grant cap, and may then apply for new solutions at the next period when the grant caps are refreshed. Companies are encouraged to plan the use of the PSG for their purchases.
What is the processing time for applications?
Applications are processed within 4-6 weeks from the submission of all required information.
Companies are strongly encouraged to submit their applications ahead of time to account for the application outcome and/or processing duration required.
What is the processing time for claims disbursement?
Claims are processed within 4-6 weeks from the submission of all required information.
Companies are encouraged to submit their claims after they have fully deployed, providing documents to show use of the solution for at least one month. Incomplete submissions will result in delays.
What payment terms are accepted for claims under the PSG?
Standard payment terms such as bank transfers and cheques are all applicable for claims.
For a sole proprietorship, payments can also be made via credit card but only the sole proprietor’s credit card.
How will the PSG grant disbursement take place?
Disbursement of the PSG grant will be credited directly to the company’s bank account through GIRO. The completed GIRO form must be verified by the company’s bank and submitted to ESG before the company’s claim request. For multiple claims, the GIRO form is only required during the submission of the first claim.
The company will need to submit a new GIRO form if there are changes to the company’s account details.
How will I be notified of the claims disbursement?
An email will be sent to the email address stated on the BGP to confirm the transaction.
Got a Question?
WhatsApp Us, Our Friendly Team will get back to you asap :)
Share with us your thoughts by leaving a comment below!
Stay updated with the latest business news and help one another become Smarter Towkays. Subscribe to our Newsletter now!
SMEs Go Digital Programme: Real Estate Agency Industry Gets New Pre-Approved Digital Solutions Eligible For PSG FundingJun 17, 2021
Productivity Solutions Grant (PSG): Singtel × MacBook Laptop BundleSep 25, 2020