EDG Eligibility Explained: Who Qualifies and Who Should Not Apply

EDG Eligibility Explained: Who Qualifies and Who Should Not Apply

The Enterprise Development Grant (EDG) is one of Singapore’s most valuable support schemes for SMEs — but eligibility is often misunderstood.

Many businesses assume that incorporation in Singapore automatically qualifies them for EDG. In reality, eligibility is only the starting point. Enterprise Singapore evaluates both company eligibility and project suitability.

This guide explains both clearly.

Who Is Eligible for EDG?

To qualify for EDG, a company must generally:

• Be registered and operating in Singapore
• Have at least 30% local shareholding
• Be financially viable
• Propose a project with clear capability uplift

Meeting these criteria allows you to apply, but it does not guarantee approval.

What “Financially Viable” Really Means

Financial viability is one of the most common rejection points.

Enterprise Singapore looks for evidence that your company can:

• Fund the entirety of the project costs prior to reimbursement
• Execute the project without grant dependency
• Sustain operations after project completion

Loss-making companies may still qualify, but losses must be explainable and supported by cash flow and a credible business trajectory.

EDG is not a rescue grant.

Can Startups Apply for EDG?

Yes, but with limitations.

Startups are more likely to succeed when:

• There is revenue traction
• Deliverables are realistic and measurable
• Costs are clearly linked to capability uplift

Exploratory or vague projects are commonly rejected.

Who Should Not Apply for EDG?

EDG may not be suitable if:

• You are looking for working capital
• You need immediate funding
• The project scope is unclear or exploratory
• The work is largely operational
• You cannot commit management time

EDG rewards structured transformation, not urgency.

A Better Way to Assess Eligibility

Instead of asking, “Am I eligible for EDG?”, a better question is:

“What will my company be able to do after this project that it cannot do today?”

That is the lens Enterprise Singapore applies.

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