Guide To Small Business Recovery Grant (SBRG) For SMEs In Singapore

As Singapore’s economic outlook improves, businesses can look forward to a better 2022. However, for the businesses, especially small and medium enterprises (SMEs), that are still struggling, the government has put in place the Small Business Recovery Grant (SBRG) to help support their recovery.

The Small Business Recovery Grant provides support for SMEs that have been most affected by COVID-19 restrictions over the past year. Unlike earlier COVID-19 support schemes which provided broad-based support, this year’s Small Business Recovery Grant provides targeted support.

Read Also: Singapore Budget 2022: 10 Things Business Owners Need To Know

Eligible SMEs Will Receive $1,000 Payout For Each Local Employee

Small and medium enterprises that meet the qualifying criteria would receive $1,000 for each local (Singapore Citizen or Permanent Resident) employee with mandatory CPF contributions in the period of 1 November 2021 and 31 December 2021. This is capped at $10,000 per company.

Employees in a company who are also shareholders and directors of the company (shareholder-directors) who are receiving CPF contributions in respect of salaries paid under a contract of service with annual assessable income less than or equal to S$100,000 also qualify for the payout as employees. Eligible businesses will be notified from June 2022.

[Update] To help businesses, the grant disbursement has been brought forward. Most eligible businesses will receive the grant monies by June 2022.

The grant monies will be exempt from income tax in the hands of employers.

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Sole Proprietors And Partnerships Will Receive A Flat $1,000 Payout

Sole proprietorships and partnerships are not considered employees. However, they are eligible for a flat payout of $1,000, if they are run by a Singapore Citizen or Permanent Resident, not hiring any local employees and earning a net trade income of no more than S$100,000 filed with IRAS in the Year of Assessment 2021 by 31 December 2021.

Partnerships must be run by at least one local business owner to qualify for the flat payout of S$1,000.  

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The Eligibility Period Is Aligned To Support SMEs in Affected Sectors

As the intention of the grant is to support small businesses in sectors that were most affected by COVID-19 Safe Management Measures, the eligibility period is aligned to the last tranche of payouts for the Jobs Support Scheme (JSS) for November 2021 – December 2021.

Likewise, the sectors that qualify for the Small Business Recovery Grant (SBRG) are the same sectors that were eligible for JSS payouts in November 2021 – December 2021.

Read Also: Here’s What You Need To Know About The Jobs Support Scheme (JSS)

Only Small And Medium Enterprises (SMEs) In Selected Sectors Are Eligible

To qualify for the Small Business Recovery Grant, the business must be:

  1. A ‘live’ business entity that is physically present in Singapore and registered no later than 31 December 2021.
  2. Have an annual operating revenue of less than $100 million filed with IRAS in the Year of Assessment 2021 by 31 December 2021 or employ fewer than 200 employees of 31 December 2021.
  3. In one of the following eligible sectors which the same sectors that were eligible for Jobs Support Scheme payouts in November 2021 – December 2021.
SectorQualifying Criteria
Food and BeverageEntities must have valid Singapore Food Agency (SFA) licenses and be classified under SSICs 56 or 68104.
Hawker Centres, Markets, Coffeeshops, Food Courts, and CanteensFor SFA-licensed operators and stallholders in markets, hawker centres, coffeeshops, food courts, and canteens that are registered as individuals: A licensee with local employees receiving mandatory CPF contributions will receive S$1,000 per local employee, subject to a cap of S$10,000 per licensee; or licensee with no local employees will receive a flat payout of S$1,000 if the licensee is a Singapore Citizen or Permanent Resident.
RetailA qualifying retail firm must: Have a physical storefront; and Be classified under SSICs 47191, 47199, 474, 475, 476, 4771, 47721, 4773, 4774, 47752, 47759, 47761, 47769, 4777, 47802, or 4799.
Performing Arts and Arts EducationEntities must: Meet at least one of the conditions of being a/an:Participant in a project, activity, programme, or festival supported by the National Arts Council (NAC) or National Heritage Board (NHB) between 1 April 2018 and 31 March 2021; orMuseum Roundtable member before 31 March 2021; orAccredited Arts Education Programme (AEP) provider listed in the 2019-2022 NAC-AEP Directory; orEntity with more than two-thirds of its business in arts/heritage-related activities (as defined as one of the six qualifying SSICs; and Be classified under SSICs 85420, 90001, 90002, 90003, 90004, or 90009.
SportsGyms, fitness studios, and other sports facilities must: Operate sports- and/or fitness-related programmes that are (i) conducted indoors without masks on prior to Phase 2 (Heightened Alert) (P2(HA)); or (ii) for those 18 years and under prior to P2(HA); and Be classified under SSIC 93111, 93119, 93120, or 85410.
Cinema OperatorsEntities must: Hold a valid Film Exhibition licence from IMDA; and Be classified under SSIC 5914.
Museums, Art Galleries, and Historical SitesEntities must: Meet at least one of the conditions of being a/an:Participant in a project, activity, programme, or festival supported by the National Arts Council (NAC) or National Heritage Board (NHB) between 1 April 2018 to 31 March 2021; orMuseum Roundtable member before 31 March 2021; orAccredited Arts Education Programme (AEP) provider listed in the 2019-2022 NAC-AEP Directory; orEntity with more than two-thirds of its business in arts/heritage related activities (as defined as one of the three qualifying SSICs); and

Be classified under SSICs 91021, 91022, or 91029.
Indoor Playgrounds and other Family Entertainment CentresEntities must: Derive more than two-thirds of their revenue from operating family entertainment centres or family attractions-related businesses; and Be classified under SSICs 93201 or 93209.
Tourism, Hospitality, Conventions, and ExhibitionsQualifying licensed hotels must be a licensed hotel classified under SSIC 551. Qualifying licensed travel agents must have more than two-thirds of their revenue from their travel agency business, based on the Annual Business Profile Returns submitted to the Singapore Tourism Board (STB) in 2018. Qualifying gated tourist attractions must: Have had more than 30% visitorship from tourists in 2019, and Be classified under SSICs 93201, 93209, 91021, 91022, 91029, or 91030.   Cruise line or cruise terminal operators are eligible. Meetings, incentives, conferences, and exhibitions venue operators (MICE) must be purpose-built MICE venue operators. MICE and tourism event organisers must: Be impacted by the deferment/cancellation/loss of sales of at least one MICE/leisure event with at least 20% foreign attendees (residing outside Singapore) originally scheduled in Singapore between 1 Feb 2020 and 31 Dec 2020; and Derive more than two-thirds of their revenue from MICE/leisure events with at least 20% foreign attendees (residing outside Singapore) in 2018 or 2019; and Be classified under SSICs 82301, 82302, or 82303.

Regional ferry operators must: Be licensed by the Maritime and Port Authority of Singapore (MPA) as a Regional Ferry Services Operator; and Be classified under SSIC 50013.

Read Also: What is Singapore Standard Industrial Classification (SSIC) Code And Why It Matters?

This articles was first published on 3 March 2022 and updated with latest information.

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