Small Business Owner’s Guide to Applying for the PSG Grant

Running a small business is hard. Keeping it afloat is even harder.

Every bit of funding support makes a huge difference — and with the Singapore government’s launch of the Productivity Solutions Grant (PSG) back in April 2018, it’s been a gamechanger for many small and medium enterprises (SMEs). Keeping costs low, productivity high, and processes as streamlined as possible is essential for every business to thrive.

That’s why we’re excited to announce that Employment Hero is officially an IMDA pre-approved vendor for the PSG grant, and that means up to 50% PSG support for you! 

Let’s jump in and find out more about the PSG grant process, so you know how you can use these funds for your business.

What is the Productivity Solutions Grant (PSG)?

The Productivity Solutions Grant is a government initiative that supports local businesses in adopting and implementing technology solutions to enhance productivity. It provides funding to businesses to help them subsidise the costs of adopting pre-approved, productivity-enhancing solutions.

How does it work, you ask? Local SMEs will be able to receive up to 50% of funding for eligible costs, at a cap of S$30,000.

PSG covers sector-specific solutions across various industries, including but not limited to retail, food, logistics, construction, manufacturing and more. It also supports the adoption of generic solutions in areas like digital marketing, inventory tracking, human resource management and more – hence all industries are welcome to apply.

These solutions have all been pre-approved by EnterpriseSG and other participating agencies, which SMEs can choose from. You can view the full list here.

Who is eligible to apply for the PSG Grant?

You can apply for PSG if your business meets the following criteria:

• Your business entity is registered and operating in Singapore;
• Your company has at least 30% local equity, held directly or indirectly by Singaporean(s) and/or Singapore PR(s);
• Your company has an annual sales turnover not exceeding S$100 million or an employment size not exceeding 200 employees;
• The IT solutions or equipment that are purchased, leased, or subscribed to must be used in Singapore; and
• Your company does not fall under these categories: charities, Institutions of Public Characters (IPCs), religious entities, Voluntary Welfare Organisations (VWO), government agencies and subsidiaries.

Take note — you also should not have paid or signed any contracts with a vendor, supplier, or third party for the lease, purchase or subscription of the equipment or solutions involved.

How long does it typically take to get a PSG Grant approved?

According to EnterpriseSG, you should receive an update on your application about 6 weeks after submitting all required information.

However, the timeline for PSG approval can vary, based on factors such as the complexity of the application, completeness of documentation, and the efficiency of the evaluation process. In some cases, businesses may receive an approval within a few weeks, while others might take a bit longer.

How can you apply for the PSG?

Onto the most important part! To apply for the PSG, you should follow these steps:

1. Read through the full list of solutions that have been pre-approved and identify the relevant solutions for your business.
2. Get direct quotations from the pre-approved vendor for the solution, equipment, or consultancy services you want.
3. Prepare all your supporting documents.
4. Submit your application on the Business Grants Portal (BGP).

Read more: How does the Business Grants Portal in Singapore work?

Required documents for submitting a PSG application on the Business Grants Portal

1. A CorpPass account

You will need to sign in to your Corppass account in order to transact on the Business Grants Portal.

You would have set up your CorpPass account when incorporating your business — it is an essential corporate digital identity for businesses to transact with government agencies such as IRAS, ACRA, CPF and more online. If you haven’t set one up yet, there are user guides available here if you want to find out more.

2. Validate your business sector on your ACRA BizFile

The PSG application form requires you to declare the business sector your company operates within. This can be referenced from the Singapore Standard Industrial Classification (SSIC) code reflected on your company’s ACRA BizFile.

To ensure that the application is as smooth as possible, ensure that your company’s ACRA BizFile has been updated and reflects your current business activities.

3. Company’s financial statements & ACRA BizFile

You’ll need to submit your company financial statements for the past 3 years. For newly incorporated companies which have been incorporated for less than a year, you can attach other relevant supporting documents such as your unaudited financial statement to-date, or management accounts endorsed by your company’s shareholder or director.

You will also need your BizFile from the Accounting and Corporate Regulatory Authority (ACRA), which should have details linked to your Unique Entity Number (UEN).

If your company is part of a corporate group, you will also have to submit:

• Corporate group financial statements for the past 3 years;
• ACRA BizFile of holding companies and/or subsidiaries;
• Corporate group structure; and the
• Complete Singapore Exchange (SGX) Shareholder report (if your parent company is listed there).

4. Documents from the vendor

You will need a quotation addressed to your registered company name as per your ACRA BizFile, and take note that your company’s full name should be reflected. You should also not have made any payment or deposits to the vendor prior to your application.

If you intend to purchase equipment, you’ll need to submit a product brochure with the relevant technical specifications.

5. Licenses required for certain sector-specific solutions

Depending on the sector your company belongs to, you’ll need to provide the relevant licenses to apply for sector-specific solutions. For example, if you’re a food company, you’ll need to submit a Singapore Food Agency (SFA) license, or if you are a security company, you’ll need to submit a valid and endorsed Police Licensing and Regulatory Department (PLRD) license.

6. Tenancy agreements

If you intend to install the relevant solution at a non-ACRA registered address, you’ll have to provide the tenancy agreement for that location. Alternatively, you can also submit your utility bills as proof of occupancy.

Want a more detailed, step-by-step walkthrough of the entire PSG application process? Check out this comprehensive guide from Enterprise Singapore.

What happens after your PSG grant application gets approved?

1. Accept the Letter of Offer (LOF)

Once your application has been approved, you will need your company’s ‘Acceptor’ role in CorpPass to accept the Letter of Offer. If you are the Acceptor for your company, navigate to the ‘My Grants’ page on the Business Grants Portal, then click on ‘Updates Required’. Click on the ‘Letters And Documents’ section, where you should see your Letter Of Offer and download it to read it, then click ‘Accept’ once you are ready.

Enterprise Singapore has a helpful step-by-step guide here that you can check out for further clarity.

2. Submit your claim for reimbursement after one month

You can submit your claims for reimbursement by submitting all the necessary documents on the Business Grants Portal. Make sure you’ve purchased or subscribed to the solution approved in the application, have used it for 30 days, and have paid in full before submitting your claim.

Documents required for your claim submission include the following:

• Invoice;
• Bank statement showing payment;
• Purchase order or signed acceptance of quotation or contract;
• Receipt or cheque;
• License number of software; and
• Usage report (of at least one month).

Take note of the due date for submission of your claim so you don’t miss it. If you don’t think you can submit your claim in time, you can submit a one-time claim extension before your claim is due via the Business Grants Portal.

3. Receive your disbursement

Once your claim has been approved, the funds will be disbursed through PayNow Corporate. Claim disbursements take up to 4-6 weeks to process. You can register for PayNow Corporate with your UEN through your respective bank, or submit your details via this form on EnterpriseSG.

Looking to switch up your HR or payroll system?

Now that you’re familiar with the PSG application process, it’s time to kickstart the transformation process. If you’ve been struggling with multiple excel sheets, legacy systems or mountains of paperwork, your business is in need of real change. Or, you could also just be outgrowing your current software. Employment Hero is officially an IMDA pre-approved vendor for the PSG grant, and that means massive cost savings for you with up to 50% PSG support! That also means we’ve got a proven track record of helping our customers succeed — our customers have shown at least a 15% increase in productivity over the last 6 months, and are satisfied with our pricing and services. (Yes, these are proven criteria to become a PSG vendor!)

Imagine having 15% of your workday back. That’s 1.2 hours a day — so you can take longer lunch breaks, catch up on your favourite Netflix obsession, or go for that extra yoga session. Every day.

By automating manual tasks and streamlining processes with our all-in-one software, you free up your precious time to focus on more strategic work that will help you grow your business. Spend time on tasks you love doing, instead of mindless admin.

Is your business eligible for the PSG grant? Join our rank of satisfied SMBs and claim up to 50% of your costs with Employment Hero. Automate recruitment, HR, payroll and benefits, for less!