Government grants are contribution funds to a company from any government agency to support the initiatives of the government target. These funds are provided for cash payments during the term of a pre-approved project. Usually, they are not refundable, but some may require repayment depending on the success of the project.
There are two main differences between grants and tax credits. First, a government grant is awarded to fund future initiatives or to get a new project off the ground. The grants will not finance projects already completed or in progress, or to refund the fees already paid. Second, a government grant is not a right, and just meeting the eligibility criteria does not guarantee approval. Scholarship programs are limited by the application deadlines and set budgets and can only approve a number of candidates each year.
How to know if my business is eligible?
Each program has different eligibility criteria and standards. Some programs are only available in certain geographic areas or periods of the year or limited to companies of a certain size or industry. Subsidies are not fighting for social assistance businesses – your company’s financial health and stability are considered strongly. You must have at least 15 employees and has been in operation for at least 2 years to be considered a good candidate for grants. You must also have plans for future growth and innovation, focusing on creating new jobs and expansion into new markets. For instance, the CDG grant by SPRING supports companies that are based and registered in Singapore, have more than 30% shares of parent country and a certain amount of turnover and employee count as well. You can check this website for CDG grant details.
How much money can I get a grant?
Depending on the type of sustained activity, incentives can range from $ 5,000 to $ 1,000,000. Grants typically cover a percentage of the eligible project costs (between 15% and 75%) to a maximum amount. The CDG Grant covers up to 70% of the overall cost of Capability development operation.
How much time and effort is required for a grant?
Each program has a unique application process. Often a preliminary application or a meeting with a government representative to select potential candidates is necessary. A full proposal with detailed information about the plans and objectives of the project, the company background and capabilities, and the financial situation is subject to the program facilitator for evaluation. Financial statements of the insurance company, the certificate of incorporation or other supporting documents may also be required for the application. This package must be filed before the project started because applications can take from several days to several months to be processed by the government. It is recommended that you begin your search for funding at least three months before your project. The CDG grant can be applied online and then once approved; you are liable to get the refunds.