As an effort to boost the economy of the country the NSW government has come up with certain grants to be extended to the business entities to keep their business into operation. This step of the government is extremely influential in the paradigm of global crisis due to COVID 19. The following NSW grants are specifically crafted to meet the various needs of business entities.
Grants for Small Businesses up to $3,000
The NSW grants will support your business to keep running with your entire dedicated workforce. Eligible business entities with a size of fewer than 20 Full-Time Equivalent (FTE) staff can seek recovery grants of $500 to $3,000. Under this scheme, small businesses, non-employing businesses such as sole traders and not-for-profit organizations can get financial assistance.
The business entities have to fulfill certain eligibility criterion as on 1 March 2020.
- Your business should be NSW based small business or a not-for-profit organization
- Your business must be registered on the Australian Business Register (ABR) in NSW
- Your business should have an annual turnover of more than $75000
- In the case of an employer, you should have less than 20 FTE staff, or a non-employing business
- Your business should fall under the category of highly impacted industry due to COVID-19 restrictions
- The grants you have applied for must be associated with the safely reopening of your business from 1 July, 2020
Coronavirus SME Guarantee Scheme
The disrupted cash flow is the major concern of SMEs and this scheme is targeted to enable SMEs to meet expenses like rent, utilities, and employee expenses. This scheme provides relief in the form of a government guarantee of 50 percent to SME lenders for new unsecured loans. This assurance by the government will encourage the lenders to provide the necessary funding to SMEs.
- SMEs having a turnover of up to $50 million can apply for this scheme
- The maximum total size of loans per borrower is $250,000
- The repayment-period of loans should not exceed 3 years
- Moratorium benefits of 6 months will be extended on repayments
- Lenders are free to set their own rates of interest
- It is an unsecured loan hence no collateral needed
If the SMEs’ existing lender is not participating in this scheme, they can seek the benefits through commercial banks. Loans will be disbursed till 30th September under this scheme and interest will be charged only for the portion of the loan used.
Grants for start-ups and emerging SMEs
Another grant offered by the government of NSW aims at supporting start-ups and emerging SMEs that are growing at a faster pace. The main goal behind this program is to accelerate their growth and create more jobs for the residents of NSW. A total funding pool of $190 million is available for 4 years (until 2020) under this grant. The amount that can be claimed depends on the category the applicant belongs to. Under this grant, the applicant also has to co-contribute.
Below mentioned are the various categories under which the funding is available:
- To encourage promising start-ups a matched funding of up to $25,000 is available in this category.
- To encourage technology related start-ups grow and create jobs, grants of up to $100,000 are made available.
- To encourage emerging SMEs that are quickly growing, loans of up to $500,000 are offered in this category.
- To encourage emerging fast growing SMEs in regional NSW, interest-free loans of up to $500,000 are offered by the government under this category.
- Fast growing SMEs which are creating more jobs but are unable to get financial help from lenders are offered loans of up to $1.2 million under this category.
NSW industries in the following sectors can apply for financial assistance under this program.
Manufacturing, creative, digital innovation, environment, finance, food, infrastructure, education (international), life sciences, tourism and regional HQs.
Above mentioned are only some of the many Government Grants in NSW. In order to find more information about such grants and their eligibility criteria, please speak to one of our advisors at the number mentioned below.