(SINGAPORE) A long neglected group of businesses will soon get their day in the sun.

The Business Times and OCBC Bank yesterday launched the inaugural Emerging Enterprise 2008 - an initiative that will give three small businesses, besides a shiny trophy, $380,000 of interest-free loans, grants and business services.

OCBC will contribute from its piggy bank a $150,000, five-year interest-free loan to each winner. The bank also has the option to invest in the company.

Another partner, Spring Singapore, will give a $150,000 grant to each winner to meet half the expenses of selected business projects. The other three partners - HP Singapore, financial consultancy RSM Chio Lim, and NUS Enterprise - will contribute a total of $80,000 of IT, consultancy and education packages.

OCBC's head of emerging business at its enterprise banking unit, Tan Chor Sen, said: 'We believe that with a little nudge - with funding, the right technology and management know-how - these growing enterprises will have that extra 'fuel' to speed up growth.'

He said an unsecured loan could cost a small company 9 to 11 per cent in interest fees a year, which works out to about half the borrowed sum over five years. Besides an interest-free loan, the publicity that winners get should help in securing additional and cheaper loan lines.

Spring Singapore's group director for enterprise capabilities, Choy Sauw Kook, said the award 'will serve as a platform to identify some of these promising SMEs. Spring can then work closely with them to help build up their capabilities.'

The Spring grant can be used to defray expenses of projects that develop business, managerial and technological capabilities, she said, and can also cover things like professional services costs and licensing fees.

BT editor Alvin Tay said the latest initiative rounds out the newspaper's stable of awards for businesses of all sizes. BT is a co-organiser of two other major business awards aimed at larger companies and their executives - the Singapore Business Awards and Enterprise 50. 'It's the whole package that makes Emerging Enterprise different,' Mr Tay said, as winners will 'not only receive a trophy but also several other prizes that are very practical and critical for small businesses'.

To qualify for the latest title in the BT line-up, a company should have turnover of between $1.5 million and $10 million and should have been operating for at least three years but not more than seven years.

It should have fewer than 200 employees and own less than $15 million of fixed assets. Sole proprietorships, partnerships as well as private limited companies are eligible.

Ninety per cent of Singapore's roughly 170,000 small and medium enterprises have a turnover of less than $10 million, according to estimates.

Judges will identify 10 finalists after applications close on March 24. The 10 will make presentations to judges in May and three winners will be presented with their prizes at a glitzy ceremony on May 21.