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Grant Guide 19 December 2025 3 min read

5 PSG Pitfalls That Get Applications Rejected Instantly

These mistakes seem small but will get your PSG application rejected instantly. This guide covers the 5 most common pitfalls: pre-payment or deposit (strictest rule of any grant), wrong vendor for IT solutions (must use pre-approved vendor), administrative fees in quotation (delivery/installation excluded), quotation doesn't match Annex 3, and wrong company name on quotation. Learn how to avoid each one before submitting.

Verified 12 March 2026

These mistakes seem small but will get your PSG application rejected instantly.

Pitfall 1: Any Pre-Payment or Deposit

The mistake: Paying a deposit to “secure” your vendor before submitting your application.

Why it fails: PSG has the strictest pre-payment rule of any grant. ANY form of payment or deposit before application submission disqualifies you.

Common traps:

  • Signing deposit to reserve a slot
  • Paying partial upfront to start work
  • Credit card hold for subscription
  • Any financial commitment to the vendor

The fix: Do NOT pay anything—not even a small deposit—until your application is submitted. Get quotations only.

Pitfall 2: Wrong Vendor for IT Solutions

The mistake: Getting a quotation from a vendor who isn’t pre-approved for that specific solution.

Why it fails: For IT solutions, you MUST use the pre-approved vendor listed for that solution package.

How to verify:

  1. Go to GoBusiness Gov Assist
  2. Find your solution
  3. Check the approved vendor list
  4. Get quotation from THAT vendor only

The fix: Always verify vendor approval before requesting a quotation.

Pitfall 3: Administrative Fees in Quotation

The mistake: Including delivery, installation, or setup fees in your grant application.

Why it fails: PSG only covers the actual purchase cost of the solution. Administrative fees are explicitly excluded.

Not covered:

  • Delivery fees
  • Installation charges
  • Setup fees
  • Training (unless bundled in approved package)
  • Maintenance fees

The fix: Ensure your quotation separates purchase cost from admin fees. Only claim the purchase portion.

Pitfall 4: Quotation Doesn’t Match Annex 3

The mistake: Getting a generic quotation that doesn’t match the PSG solution specifications.

Why it fails: For IT solutions, the items and costs must exactly match Annex 3 of the selected PSG pre-approved solution package.

What Annex 3 contains:

  • Specific software/hardware items
  • Approved pricing
  • Mandatory specifications

The fix: Ask your vendor for a “PSG-compliant quotation” that references Annex 3.

Pitfall 5: Missing 30-Day Usage Proof

The mistake: Submitting a claim immediately after installation without proof of usage.

Why it fails: PSG requires your solution to be deployed and used for at least 30 days before you can claim.

Claims requirements:

  • IT solutions: Usage report showing 1 month of use
  • IT solutions: Photo of software license number
  • Equipment: Photo of equipment serial number

The fix: Wait 30 days after deployment. Document your usage. Then submit your claim.

Bonus: Group Application Attempt

The mistake: Trying to apply as a group of companies or using one UEN for multiple applications.

Why it fails: Each Unique Entity Number (UEN) can only have one application submission. No group applications allowed.

The fix: Each company applies separately under its own UEN.

Pre-Submission Checklist

Before clicking submit:

  • Not completed
    NO payment or deposit made to vendor
  • Not completed
    Vendor is pre-approved for this solution
  • Not completed
    Quotation matches Annex 3 (for IT solutions)
  • Not completed
    Admin fees separated from purchase cost
  • Not completed
    Company name on quotation matches ACRA exactly
  • Not completed
    Not an excluded entity type

Claims Checklist

Before claiming:

  • Not completed
    Solution deployed for at least 30 days
  • Not completed
    Full payment made to vendor
  • Not completed
    Invoice addressed to ACRA company name
  • Not completed
    Usage report prepared (IT solutions)
  • Not completed
    License/serial number photo taken
  • Not completed
    PayNow Corporate or GIRO set up

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