S$6 Million Grant Scheme Available to Singapore FinTech Firms

CNPupdate

 

S$6 Million Grant Scheme Available to Singapore FinTech Firms


A photo of the Monetary Authority of Singapore



Date Published: 21 July 2020 


Authors: Quek Li Fei and Sean Tan




 

Update

On 13 May 2020, the Monetary Authority of Singapore (“MAS”), the Singapore FinTech Association (“SFA”) and the AMTD Group and AMTD Foundation (collectively, “AMTD”) jointly launched the MAS-SFA-AMTD FinTech Solidarity Grant (“Grant”) catered towards Singapore-based FinTech firms during this period of uncertain business landscape consequent upon the COVID-19 pandemic.

Valued at S$6 million, the Grant aims not just to help FinTech firms maintain their operations, but also to enable them to continue innovating and pursuing growth strategies. The Grant complements a S$125 million support package announced by the MAS on 8 April 2020 aimed at sustaining and strengthening capabilities in financial services and FinTech sectors in Singapore. The Grant comprises two components:

  • The Business Sustenance Grant (“BSG”), under which eligible Singapore-based FinTech firms can receive a one-time grant of up to S$20,000 to cover daily operating and working capital expenses. This is intended to help firms maintain operations and retain employees.
  • The Business Growth Grant (“BGG”), under which eligible Singapore-based FinTech firms can receive up to 70% of its qualifying expenses such as professional services, wage support and hardware and software expenditure, capped at S$40,000, on its first application. For its second to fifth application, the cap is lowered to S$10,000 per application.

The SFA is the grant administrator and will review and assess applications.

The qualifying criteria are as follows: the FinTech firm must (a) be registered and in operation in Singapore for at least 3 months before grant application; (b) have at least 2 or more core activities in Singapore; (c) be an SFA member with a valid SFA FinTech Certification; and (d) only 1 application is allowed per company or Group of related companies.

A Fin Tech firm will be required to meet certain requirements after receiving the Grant, failing which the Grant may  be clawed back by the SFA. These requirements, dubbed key performance indicators, are the following: for a period of 12 months after receiving the Grant, the FinTech firm must (a) remain registered and operating in Singapore; (b) not have any reduction in headcount at the end of a project period, but if necessary and inevitable, not more than a 20% headcount reduction (excluding interns); (c) remain an SFA member with a valid SFA Fintech Certification throughout the period. For the BGG, there is an additional requirement that a Proof of Concept must be successfully completed on the API Exchange (“APIX”) platform which results in a certificate of completion from APIX.

Interested applicants may fill up an application form available here, to be submitted together with their ACRA business profile, on the SFA’s submission portal here.


Disclaimer: This update is provided to you for general information and should not be relied upon as legal advice.

 

CNPLaw’s Blockchain, Cryptocurrency and Initial Coin Offerings (ICOs) Lawyer

Quek Li Fei Legal Partner at CNPLaw LLP image

Partner

In addition to Li Fei’s experience in acting for banks on varied transactions and in general corporate law, he also helps individuals in estate planning, including the legal aspects of wealth management, advising on and setting up trusts and off-shore structures to secure their future and the future of their families. For 2020, Li Fei is recommended by The Legal 500 Asia Pacific for the Financial Services Regulatory practice.




Sean Tan Associate at CNPLaw
Associate

Sean is an associate in the Corporate Finance practice group. His main areas of practice include corporate finance, equity capital markets, and general corporate advisory. He has been involved in preparing commercial agreements and general corporate contracts.



We have a particular passion and interest in blockchain technology applications, cryptocurrencies and ICOs. We currently advise issuers of tokens, ICO advisors, venture capital firms and entrepreneurs involved in this space on Singapore legal issues and regulatory compliance for a range of planned business activities, ranging from utilization of blockchain to enable business applications in diverse fields (including money remittance, solar energy, consumer rewards, structured social interaction; music and entertainment industry; holiday & leisure industry; employment marketplace, consumer rewards, crypto-asset security applications); to setting up cryptocurrency exchanges and issue of tokens on proprietary platforms.





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