The Small Business Recovery Grant (SBRG) is a financial assistance program designed to support small businesses that have been negatively impacted by the COVID-19 pandemic. The SBRG provides grants of up to $10,000 to eligible small businesses to help cover operating expenses and other costs associated with reopening or continuing operations.
The program is administered by state or local governments, and specific eligibility requirements and application procedures may vary depending on the jurisdiction.
ELIGIBILITY OF SMALL BUSINESS RECOVERY GRANT (SBRG)
To be eligible:
- The firm must be a “live” business entity with a physical presence in Singapore and be registered1 no later than December 31, 2021.
- Additionally, the Firm must have less than S$100 million in annual operating revenue reported to IRAS for the Year of Assessment 2021 by December 31, 2021, or employ fewer than 200 people as of December 31, 2021.
Details of Payout
In the period from 1 November 2021 to 31 December 2022, eligible enterprises will receive S$1,000 for each local employee who makes mandatory CPF contributions, up to a maximum of S$10,000 per firm.
If the local business owner has a net trade income of no more than S$100,000 as reported to IRAS and runs sole proprietorships or partnerships with at least one local business owner but without hiring any local workers, the business will receive a flat dividend of S$1,000.
If applicable, businesses that still owe money to other government programs like the Rental Support Scheme (RSS) or Jobs Support Scheme (JSS) may have those payments deducted from their SBRG or other government program reimbursements.
SBRG payouts will be made to eligible businesses in June and November 2022.
- Only businesses possessing a “live” business status with the Accounting and Corporate Regulatory Authority (ACRA) as of the payout point, including sole proprietorships, partnerships, limited liability partnerships, and corporations, are eligible.
- If they still have an active license at the time of payout and have valid Singapore Food Agency (SFA) licenses as of December 31, 2021, operators and stallholders in markets, hawker centers, coffee shops, food courts, and canteens are eligible.
- Societies in the performing arts and arts education, museums, art galleries, and historical sites, as well as sports, that are registered under Section 4 or 4A of the Societies Act are also eligible.
- Employees who are permanent residents or citizens of Singapore. This includes workers who receive CPF contributions in relation to salaries paid under a contract of service and have annual assessable income of less than or equal to S$100,000, as well as shareholders and directors of the firm (shareholder-directors). Employees do not include other sorts of business owners, such as sole proprietors and partners in a partnership.
Owner of a registered business in Singapore who is a permanent resident or citizen of Singapore.
SECTORS ELIGIBLE FOR A SMALL BUSINESS RECOVERY GRANT
Sectors that were eligible for Employment Assistance Scheme disbursements in November and December 2021 for registered firms are also eligible for the Small Business Recovery Grant. The SSIC definitions provided are based on the SSIC 2020 classification scheme.
| Sector | Qualifying Criteria |
| Food and Beverage | Entities must have valid Singapore Food Agency (SFA) licenses and be classified under SSICs 56 or 68104. |
| Hawker Centres, Markets, Coffeeshops, Food Courts, and Canteens | For 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; | |
| A licensee with no local employees will receive a flat payout of S$1,000, if the licensee is a Singapore Citizen or Permanent Resident. | |
| Retail | A qualifying retail firm must: |
| Have a physical storefront; and | |
| Be classified under SSICs 47103, 47109, 474, 475, 476, 4771, 47721, 4773, 4774, 47752, 47759, 47761, 47769, 4777, 47802. | |
| Performing Arts and Arts Education | Entities must: |
| Meet at least one of the conditions of being a/an: | |
| (i) 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; or | |
| (ii) Museum Roundtable member before 31 March 2021; or | |
| (iii) Accredited Arts Education Programme (AEP) provider listed in the 2019-2022 NAC-AEP Directory; or | |
| (iv) Entity with more than two-thirds of its business in arts/heritage-related activities (as defined as one of the 6 qualifying SSICs in criterion 2); and | |
| Be classified under SSICs 85408, 90001, 90002, 90003, 90009, 91021, or 91029. | |
| Sports | Gyms, 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 85407. | |
| Cinema Operators | Entities must: |
| Hold a valid Film Exhibition license from IMDA; and | |
| Be classified under SSIC 5914. | |
| Museums, Art Galleries, and Historical Site | Entities must: |
| Meet at least one of the conditions of being a/an: | |
| (i) 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; or | |
| (ii) Museum Roundtable member before 31 March 2021; or | |
| (iii) Accredited Arts Education Programme (AEP) provider listed in the 2019-2022 NAC-AEP Directory; or | |
| (iv) Entity with more than two-thirds of its business in arts/heritage-related activities (as defined as one of the 3 qualifying SSICs in criterion 2); and | |
| Be classified under SSICs 91021, or 91029. | |
| Indoor Playgrounds and other Family Entertainment Centres | Entities 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 Exhibitions | Qualifying 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, 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. |
ABUSE OF SBRG
Any effort to take advantage of the program is taken seriously by the government. Offenders may have their SBRG compensation withheld and face up to 10 years in prison and a fine if charged under Section 420 of the Criminal Code. The government has implemented a strong anti-gaming framework and used data from various sources to identify hazards in order to detect potential abuses. The Government will take into account all pertinent facts and circumstances and, when necessary, perform extensive verifications when determining whether an arrangement is oppressive.
IRAS won’t disburse the SBRG reimbursement until they are happy with the review’s conclusion.
Note: The Small Business Recovery Grant (SBRG) has ended and there will be no further disbursement of SBRG. From January 16th, 2023, IRAS will also stop operating its SBRG helpline and email system.
FAQs
How is the payout for SBRG computed?
In the period from 1 November 2021 to 31 December 20216, eligible enterprises will receive S$1,000 for each local employee5 with mandated CPF contributions, up to a ceiling of S$10,000 per firm.
If the local business owner has a net trade income of no more than S$100,000 reported to IRAS in the Year of Assessment 2021 by December 31, 2021, and the sole proprietorship or partnership is managed by at least one local business owner7 but does not employ any local workers, the business will receive a flat payment of S$1,000.
Why was November-December 2021 chosen as the basis period for CPF contributions?
The Small Business Recovery Grant’s goal is to assist small businesses in the industries most negatively impacted by COVID-19 Safe Management Measures, so the eligibility period is coordinated with the final round of payments for the Jobs Support Scheme (JSS), which runs from November to December 2021.
Why do sole proprietorships and partnerships that are run by at least one local business owner but do not hire any local employees receive a flat payout of S$1000?
The government is aware that certain partnerships and sole proprietorships are managed solely by the firm owners. Thus, they are offering a flat payout of S$1,000 for sole proprietorships and partnerships that are run by at least one local business owner but do not employ any local workers, provided that the local business owner has a net trade income reported to IRAS of no more than S$100,000.
Only partnerships with one local business owner would be eligible for the $1,000 lump sum payment. Because they are not regarded as employees, sole proprietors and partners in a partnership can do so.
Do I get taxed on Singapore Business Recovery Grant?
Employers will not be required to pay income tax on the Small Business Recovery Grant.
If my appeal was not successful can I submit another appeal?
Only those who can offer fresh information in favourably supporting their arguments may file appeals. The SBRG status will not change if the same information is resubmitted.
How will I receive my SBRG payout?
The following methods (listed in order of importance) will be used to credit payouts:
- Your GIRO bank account, which is used for income tax and GST, will be credited with the SBRG payout.
- The SBRG payout will be credited to any persons without GIRO accounts who have a PayNow (for sole proprietors/individuals) or PayNow Corporate* registered bank account.
Does my successful appeal under SBRG mean that I am eligible for the JSS?
The JSS and the SBRG are separate programs with distinct objectives, target populations, and eligibility requirements. The appellants who won their appeals for SBRG might not have been eligible for JSS.
As a result, the appellant’s eligibility for JSS would not necessarily be reviewed in the event of a successful appeal under SBRG. In addition, the JSS system has now closed its window for appeals as of 30 April 2022.
