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GOVERNMENT DEVELOPMENT ASSISTANCE PROGRAMMES
TIMES BUSINESS DIRECTORY OF SINGAPORE 2020/2021
BUSINESS DEVELOPMENT
Programmes Description Reference
1
Double Tax Deduction for Inbound Tourism Promotion
To encourage Singapore tourism companies to promote the provision of services for inbound tourism to Singapore through participation in STB supported overseas trade fairs / missions.
Eligibility Criteria
To qualify, a company should meet the following requirements:
• Must be a resident company or has a permanent establishment in Singapore • Is promoting Singapore services for inbound tourism
STB
2
Loan Insurance Scheme (LIS)
Enterprises can secure short-term trade financing loans via the Loan Insurance Scheme (LIS) from Participating Financial Institutions (PFI).
Enterprises can apply for the LIS to secure short-term trade financing for the purpose of: • Inventory/ stock financing facility
• Structured pre-delivery working capital
• Factoring/ bill or invoice or accounts receivable discounting with recourse
• Overseas Working Capital Loan • Banker’s Guarantee
Eligibility Criteria
Companies applying for the LIS should meet the following criteria:
• Be a business entity that is registered and physically present in Singapore
• At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s),
determined by the ultimate individual ownership
• Group revenue of up to S$100 million or maximum employment of 200 employees.
ES
3
Enterprise Finance Scheme (EFS)
Whether you are planning to develop new capabilities, create new products or expand your business footprint overseas, having access to the right financing is crucial to realise your growth ambitions.
It covers six areas to address enterprises’ financing needs. Enterprise Singapore will share the loan default risk in the event of enterprise insolvency with the Participating Financial Institutions.
• SME Working Capital Loan
• SME Fixed Assets Loan
• Venture Debt Loan
• Trade Loan
• Project Loan
• Mergers & Acquisitions Loan
A higher risk share will be considered for the following:
a. Young companies within 5 years from inception; and
b. Markets with Standard & Poor’s (S&P) ratings of below BBB- or are not rated.
In light of COVID-19, the food & beverage, retail and tourism establishments are required to comply with the Safe Distancing measures to be eligible for EFS.
ES
4
Major Exporters Scheme (MFS)
Major Exporter Scheme (MES) is designed to ease the cash ow of businesses that import and export goods substantially. Under normal rules, the businesses have to pay GST upfront on imports and subsequently obtain a refund from IRAS after submission of their GST returns. This can create cash flow problems for businesses that export goods substantially as no GST is collected from the zero-rated supplies to set-off their initial cash outflow on imports.
IRAS
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