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6 Government Grants to Help Start Your F&B

More than just PIC and ICV.

Opening a restaurant is expensive – thankfully we have some government grants and subsidies that make it a little easier to bear. Not all grants are publicised as applicable for F&B though, and they can be hard to track down. Here’s a list of applicable grants for F&B – we will add to the list if we find more!

Starting with the most common, in case you don’t know much about it:


 
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1. PIC : Productivity and Innovation Credit Scheme

Grants : 

TAX DEDUCTION OR CASH PAYOUT

The most straightforward to apply for and claim. Choose from a tax deduction or a cash payout. Claimable yearly!

How to qualify :

All businesses can qualify. Expenditure must be spent on the 6 qualifying activities.

 
Image credit: iras.gov.sg

Image credit: iras.gov.sg

 
" What’s the difference between tax deduction and cash payout ? "
                   
Tax deduction Cash payout
400% tax deduction on up to $400,000 qualifying expenditure per year40% cash payout on up to $100,000 spending on qualifying activities
Other than design projects, no prior approval from IRAS is required3 local employee rule: pay CPF for last three months
Minimum expenditure for cash payout is $400. For IT and automation equipment claims, equipment to be in use at the point of choosing cash payout. E-filing application is compulsory.

 
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2. ICV : Innovation and Capability Voucher

Grants : 

8 X $5,000 VOUCHERS

For SMEs to upgrade and strengthen their core business operations through consultancy and adoption and implementation of pre-scoped Integrated Solutions (plug-and-play tools that help SMEs overcome common business challenges and achieve overall productivity gains).

 How to qualify :

  • Registered and operating in Singapore

  • At least 30% local shareholding

  • Group annual sales turnover ≤ S$100m or group employment of ≤ 200 employees

" What it can be used for ? "
                
Consultancy Integrated Solutions
2 vouchers per capability area Max. 2 vouchers
Capability areas:
* Financial management
* Human resources
* Innovation
* Productivity
NOT claimable:
* Government licensing and permit cost
* Accounting/audit/legal fees
* Set-up costs for new businesses e.g. Renovation for new outlets / purchase of operating items, and etc.
* Essential business costs i.e. Costs required to be incurred so that basic operations of the company can be carried out
* Replacement cost due to damages, wear and tear, and etc.
Pre-approved service providers only* Pre-approved Integrated Solutions providers only*

*refer to lists on https://www.spring.gov.sg/growing-business/voucher/pages/innovation-capability-voucher.aspx

Apply online via the ICV Online Portal info

For consulting, the service provider must agree to undertake the project before you can submit your application online.


 
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3. CDG : Capability Development Grant 

Grants :

UP TO 70% FINANCIAL ASSISTANCE

To take SMEs to the next phase of growth by building capabilities across 10 business areas through large scale projects.

Subsidises the cost of projects by up to 70%. Application for grants of $30,000 and below has been made easier (no proposal required, only filling out a project questionnaire).

How to qualify :

  • Registered and operating in Singapore

  • At least 30% local shareholding

  • Group annual sales turnover ≤ S$100m or group employment of ≤ 200 employees

Your project must fall within one of these 10 areas:

Image credit: iras.gov.sg

Image credit: iras.gov.sg

We think these are the most applicable for F&B :

  1. Brand development/ marketing strategy development
  2. Intellectual Property & Franchising – developing a franchising system
  3. Service excellence
  4. Technology innovation – develop critical technology that boosts productivity, e.g. automating processes in the kitchen

You must apply for CDG before commencing project.

Your project can only commence (this includes payment for services/ suppliers but not deposits) on or after the Project Commencement Date stated in your CDG application, after it has been submitted to SPRING.

Actual grant awarded is subject to SPRING’s approval.


 
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4. P-Max :  Place-and-Train Programme

Grants : 

$5,000 ASSISTANCE GRANT

Assist SMEs to better recruit, train, manage, and retain their newly-hired PMETs.

Help place job-seeking PMETs into suitable SME job.

How to qualify :

  • Registered and operating in Singapore

  • At least 30% local shareholding

  • Group annual sales turnover ≤ S$100m or group employment of ≤ 200 employees

  • Have PMET job vacancies available and/or hired a PMET within the last three months prior to enrolment into programme with a gross monthly salary of at least $2,500

Management/Supervisors/HR representatives from the hiring SMEs must attend a 1-day SME workshop. S$53.50 (inclusive of 7% GST)

Newly-hired PMET must attend 2-day PMET workshop. S$160.50 (inclusive of 7% GST)

SMEs will receive a one-time $5,000 Assistance Grant upon:

  • Successful retention of their newly-hired PMET(s) for at least six months upon completion of both the PMET and SME workshops under the programme

  • Endorsement by SNEF that the SME has submitted a P-Max report at the end of the six months post-placement period

Info here


 
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5. Work-Life : Grant for flexible work arrangements

Grants : 

UP TO $40,000 and/or UP TO $120,000 OVER 3 YEARS

Funding and incentives for companies to offer flexible work arrangements (FWAs) for employees.

FWAs include :

Flexi-time, flexi-place and part-time work

FWA employees must be working on a regular basis, i.e. not ad-hoc or casual employees.

How to qualify :

All Singapore legally registered private organisations, including companies, educational institutions, societies, non-profit organisations, etc. with bona fide operations qualify.

" You can apply for either or both the Developmental Grant or the FWA incentive. "
                               
Developmental Grant FWA Incentive
For introducing new FWAsBased on the no of Singapore employees on FWAs
One-time grant of up to $40,000 per company ($20,000 being reimbursement of expenses)Up to $120,000 per company, in tranches of up to $40,000 per year over 3 years.
Appoint a work-life ambassador from senior management to champion a work-life friendly workplace for your employees and to communicate the organisation’s work-life policies to your employees.Appoint a work-life ambassador from senior management to champion a work-life friendly workplace and communicate your organisation’s work-life policies to your employees.
Have at least one employee complete the work-life training course.Have formalised 2 or more new FWAs in your HR policies and communicate them to your employees.
Have no more than 6 in 10 employees on the same FWA type counting towards the 20% or 30% FWA utilisation requirement.

 
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6. IGP : Inclusive Growth Programme

Grants :

UP TO 50% FUNDING PER PROJECT

Promote inclusive growth and sharing of productivity gains with workers through higher wages.

How to qualify :

All businesses registered in Singapore under the Business Registration Act and carrying out business in Singapore.

Productivity improvement project(s) that share gains with low wage workers (monthly pay ≤$1,700).

Supportable costs include :

  • Automation & equipment cost

  • Process re-engineering

  • Training costs directly associated with the project

e2i can help you to identify areas that have potential for improvements.

To receive up to 50% funding, the project must meet the requirements of benefiting both your operations and workers.

Info here


Feeling Overwhelmed? Bootcamp_arrow

If you’re a new, first-time F&B entrepreneur planning to open an outlet soon, we’ll explain all this in more detail at our F&B Entrepreneur Bootcamp.

Join our BOOTCAMP

Jointly organised by DBS BusinessClass, we’ll explain the government grants , take you through the NEA Licence application process, discuss Facebook marketing and also financing for your outlet. This Bootcamp is held monthly. Click for more info!

 

Cheryl Tay is the editor and marketer at iCHEF Singapore. She also manages iCHEF Club, a growing community of F&B owners in Singapore – organising events, an online newsletter and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she attempts to read every book that’s ever won a literary prize and watches cat videos. Like any proper Singaporean, her love for food runs deep – especially spicy food. Chili is life. 


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