Australian Federal and State governments both have quite a few grants in place for business capital programs. The main aim of these grants is to retain the existing jobs and to create new ones. These programs help businesses set-up new branches or helps them expand their current facility, improve their infrastructure, encourage product innovation and market penetration. In this section, we will discuss about some of these grants and their eligibility criteria.
One of the programs funded by an Australian state government aims at retaining the existing jobs and to create new job opportunities in the regional area. The program aims to felicitate investment capital with a special emphasis on regional competitive advantage. It also aims at diversifying the employment base in the regional areas of the state. The Fund aims to improve regional capacity, innovation and capitalize on the potential of emerging industry sectors, particularly the government’s priority areas and new export markets. A total funding pool of $500 million is available under this grant. There are no max or min limits; however, the applicant is expected to co-fund the project.
Eligible applicants include but are not limited to:
- SMEs and business agencies
- Industry groups such as chamber of commerce, business and industry clusters, etc
- Local government bodies
- Government agencies
- Not-for-profit organizations
- Regional businesses
- Higher education providers
The program is open on an ongoing basis.
Another Federal and State co-funded program aims to support capital projects which are on the lookout to create and expand manufacturing activities within the state. The main focus of this program is to transition the manufacturing industry by improving the overall efficiency and competitiveness of the manufacturing companies. A total funding pool of $47.5 million is available under this program. The minimum and maximum funding available are $500,000 and $2.5 million respectively. Applicants can avail up to one third of the total project costs, however, the rest should be co-contributed.
To be eligible for this grant, an applicant must be:
- an SME with up to 199 full-time employees
- a business incorporated in Australia
- paying income tax
- engaged in trading actively
- have an ABN
- registered for GST
One more state funded program aims at funding businesses that have an excellent growth potential by providing them with capital. This program focuses to help high-potential businesses cross the barriers and attract the necessary funds to start their operations thus creating more job opportunities within the state.
Under this program, an applicant:
- can claim for up to $5 million in loan guarantee
- should repay the loan within 2-5 years
- should pay a guarantee fee to the guarantor
- should provide milestone reports
To be able to apply for this program, an applicant must:
- be a fast-growing SME
- Have an ABN
- Have a minimum of 5 full-time employees
- Be creating at least 30 new full-time jobs within the state offering the assistance
- Be able demonstrate a revenue of $3 million
- Be unable to secure sufficient funds from the lender
Above mentioned are only some of the many Business Capital Programs offered by the Australian Federal and State governments. To know more about such grants and their eligibility criteria, please speak to one of our advisors.