5 Things To Know About The PSG Digital Marketing Grant
Updated on: 18 October 2021
As the pandemic continues to show no sign of abating, numerous businesses have incurred heavy losses during this period – in part due to the various circuit breaker measures implemented to curb the spread of the virus. Additionally, consumers have minimised the time they spend outdoors and instead turn to alternative methods, such as online shopping, to purchase their daily essentials.
As a result, traditional brick-and-mortar shops have to adapt and adopt a digital storefront to survive. However, this change also means increased competition in the digital realm, making it even more challenging for entrepreneurs to promote their products and services. Hence, they require an effective digital marketing strategy to stand out from the crowd.
However, with various small and medium-sized enterprises (SMEs) already struggling to recoup their losses, it is a big ask for these entrepreneurs to fork out a significant sum to invest in digital marketing solutions. Recognising this struggle, the government recently announced that the Productivity Solutions Grant (PSG) is expanded from October to include digital marketing solutions.
This is undoubtedly good news for every SME, but what does the PSG Grant entail, and what can entrepreneurs expect when applying for the grant? Well, fret not! Let us share the five things you need to know about this new grant.
1. The grant supports up to 50% of the cost
As of April 2023, the funding support for pre-approved digital marketing solutions is up to 50%. For example, if your application is successful and you are offered the maximum funding available, you would only need to fork out $5000 from your company’s marketing budget, while the grant subsidises the remaining $5000 when you take up a digital marketing package that cost $10,000.
2. The grant can be paired with SFEC
The PSG grant is not the only resource you can access. Should your company be eligible for the SkillsFuture Enterprise Credit (SFEC) grant, you can tap on a one-off $10,000 credit to cover up to 90% of your out-of-pocket expense for supportable initiatives, including digital marketing solutions provided by PSG-approved vendors.
The payout from the SFEC grant is automatically calculated based on the claim submission for the applicable digital marketing solutions. Let us share a brief example of how the disbursement works:
|Cost of the digital marketing solution||$10,000|
|Claim approved amount from PSG Grant (up to 50%)||$5,000|
|Your out-of-pocket expense||$5,000|
|SFEC disbursement (up to 90% of the out-of-pocket expense)||$4,500|
3. The grant covers a comprehensive list of digital marketing solutions
The funding available is attractive, but it will be all for nought if the digital marketing solutions covered under the grant are barebones. Fortunately, SMEs can tap this grant for a variety of services.
Whether you are looking for a trusted agency to help you develop and execute a successful digital marketing strategy or create trending and relevant content to boost your business on various online platforms such as social media, this grant has you covered. The government hopes that through the help of this grant, SMEs can establish a significant presence in the digital realm and direct more traffic to their businesses, resulting in increased sales revenue.
4. You need to be a local business to apply for this grant
Similar to its predecessor, SMEs need to fulfil a list of criteria if they wish to apply for the PSG grant. Let us share the eligibility criteria so you can gain a better understanding of whether your business qualifies for this grant.
Your company can apply for the grant if it meets the following requirements:
- The business is registered and operating in Singapore;
- The company has a minimum of 30% local shareholding, with Company’s Group annual sales turnover of less than SGD$100 million, or less than 200 employees (applicable for selected solutions only);
- The purchase/subscription/lease of the digital marketing solution has to be used in Singapore.
5. SMEs can only submit one claim per approved application
Businesses can only submit one claim per approved application for the PSG grant. After the claim has been approved, entrepreneurs can no longer tap on this resource for a separate vendor.
Therefore, it is imperative for you to do your research and select a trusted digital marketing agency to work with. It is best to take a look at the agency’s portfolio and client reviews to give you a deeper insight into what working with the agency is like and whether their goals and vision align with your company’s.
The PSG Grant is an exciting opportunity for SMEs to expand their presence online and reach out to new audiences at a reduced cost. With the funding acquired by the grant and the expertise of a reliable digital marketing agency, you can now take your business to the next level.
If your company qualifies for the grant and you cannot wait to begin your application, check out our step-by-step guide to applying for the PSG Grant now!