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The Productivity Solutions Grant (PSG) offers financial support for Singaporean SMEs to adopt technologies that improve efficiency and productivity. However, getting an application approved is not always simple. Many applications get rejected due to avoidable mistakes, from incomplete paperwork to incorrect vendor selection.
This comprehensive blog will help you understand the top reasons for PSG application rejection and how to address these issues effectively. With actionable insights, you can improve your chances of securing grant approval and avoid common pitfalls.
Incomplete or Incorrect Documentation
Documentation is the cornerstone of any successful PSG application. Missing, incomplete, or incorrect documents not only delay the approval process but often lead to outright rejection. This can occur when businesses forget to include updated financial statements, vendor quotations, or even basic registration certificates.
How to Fix It?
Errors such as typos in the company’s Unique Entity Number (UEN), mismatched addresses, or inconsistent information between documents also cause setbacks. Evaluators rely heavily on accurate information to verify eligibility and ensure that the proposed solution aligns with the grant’s criteria.
- Prepare a Documentation Checklist
List every required document—such as business profiles, financial statements, vendor quotations, and payment receipts—and cross-check them before submission. Missing a single document can delay the entire process or result in rejection.
- Maintain Consistent Information
Ensure that your company name, UEN, and ownership details are identical across all forms and supporting files. Inconsistencies raise red flags during evaluation and may lead to further inquiries or rejections.
- Engage Vendors for Quotations
Work closely with your PSG-approved vendor to produce detailed quotations that break down costs by categories like installation fees, software licensing, and after-sales support. This prevents ambiguity and improves your application’s chances of approval.
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Non-Compliance with Eligibility Criteria
The PSG has clear eligibility requirements to ensure funds are used effectively by businesses that need them most. Common reasons for rejection include businesses exceeding the revenue threshold of SGD 100 million or employing more than 200 employees.
How to Fix It?
Some companies are rejected because they do not meet the 30% local ownership requirement. In addition, applying for a solution already funded under a previous PSG grant leads to automatic disqualification.
- Review the Guidelines
Before applying, read the official guidelines on the Business Grants Portal to verify if your business meets the eligibility criteria.
- Ensure Solutions are Fresh
If you have already implemented a similar solution with previous funding, explore other grant options to avoid redundancy. Submitting duplicate projects under PSG is not allowed.
- Plan Projects with PSG Objectives
PSG aims to promote digital transformation and productivity improvements. Ensure your proposed solution reflects these goals to align with grant priorities and increase approval odds.
Contract Signing and How to Fix It?
The PSG grant has strict rules about when payments can be made to vendors. Businesses that pay vendors or sign contracts before receiving formal grant approval risk disqualification. This policy ensures that grant funds are used for approved projects only, preventing misuse of resources.
- Coordinate Project Timelines
Let vendors know that payments and contracts can only proceed after formal grant approval. Request quotes and prepare documentation without finalizing any agreements prematurely.
- Plan to Avoid Pressure
Start the application process early to account for the four to six weeks of processing time. This reduces the temptation to prepay vendors to meet urgent project deadlines.
- Follow-Up on Status
If you anticipate project delays, regularly check the status of your application on the BGP and stay in contact with your vendor.
Incomplete Vendor Quotations and How to Fix It?
A detailed vendor quotation is essential to secure PSG funding. Ambiguous or incomplete quotes lacking itemized pricing, service descriptions, or project timelines create confusion for evaluators. Without clear information, it becomes difficult to assess whether the project meets PSG standards.
- Request Comprehensive Quotes
Ask vendors to provide detailed breakdowns of all costs, including hardware, software, implementation fees, and post-sales support. Each component should be separately itemized with clear explanations.
- Cross-Check Quotations
Ensure that all details in the vendor quote match the information submitted in your application. Mismatches between project descriptions and quotations can delay approval or result in rejection.
- Communicate with Vendors
If you identify gaps in the quote, work closely with your vendor to refine the document until it meets PSG requirements.
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Submit Applications During Peak Periods
Applying during peak periods can slow down the approval process. During these times, the Business Grants Portal experiences higher traffic, leading to longer processing times and more opportunities for errors or incomplete reviews.
- Plan Submissions in Advance
Start preparing your application well before high-demand periods to avoid delays. Submitting early ensures you get ahead of the queue during busy seasons.
- Communicate on Timelines
Coordinate your project’s timeline with your vendor to align with grant approval schedules. This ensures both parties are prepared to act as soon as approval is received.
- Monitor Application Progress
Regularly log into the BGP to track your application and quickly respond to any requests for additional information.
Using Unapproved Vendors
The PSG only funds projects involving pre-approved vendors to ensure quality and compliance. Many applications are rejected because businesses unknowingly partner with unapproved vendors, assuming their reputation is sufficient to qualify for the grant.
- Search the Approved Vendor List
Use the IMDA Portal to find eligible vendors. Double-check the vendor’s status before starting the project to ensure compliance.
- Verify Vendor’s PSG Experience
Work with vendors who have experience with PSG applications. Experienced vendors understand the grant’s requirements and can help you avoid common mistakes.
- Ask for Vendor Certification
Request documentation from your vendor confirming their approved status with the PSG program to minimize the risk of errors.
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Misalignment with PSG Objectives
PSG grant is awarded to projects that align with the goal of improving productivity through technology. Projects proposing outdated tools, minimal productivity benefits, or services that do not improve business efficiency often get rejected.
- Focus on Technology
Choose solutions that align with current PSG priorities, such as eCommerce platforms, POS systems, or cloud-based software. These tools have a direct impact on productivity.
- Consult with Experts
If you are unsure whether your project meets PSG objectives, consult with vendors or grant advisors. They can provide valuable insights into alignment strategies.
- Monitor Changes
Stay updated on the latest PSG guidelines to ensure your project proposal reflects the program’s evolving priorities.
Your PSG Application is Successful!
The PSG grant can benefit your business, but success depends on avoiding common mistakes and preparing a well-organized application. By focusing on accurate documentation, aligning with eligibility criteria, and working with approved vendors, you improve your chances of approval. Start early, communicate closely with your vendors, and monitor your application’s progress to ensure a smooth journey from submission to approval.
