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Small business grants
Your comprehensive guide to small business grants, including a list of all the state-based and federal grants currently available in Australia.
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It'll come as no surprise to any entrepreneur that starting and maintaining a small business can be challenging. Luckily, there are a large number of small business grants in Australia that can help your business to flourish. Find out what these grants are for and if your business is eligible for one (or more) of them below.
What's in this guide?
What is a small business grant?
A small business grant is a sum of money that is awarded to eligible businesses as either: seed money for a startup, an exemption from or reduction of a certain business cost/fee (for example, tax relief), or cashflow assistance for existing businesses. Small business grants in Australia are provided either by the federal government, state governments, not-for-profits, or certain private businesses and corporations.
Small business grants are non-repayable and do not require a business to relinquish any equity to the grant provider. They are therefore often considered to be attractive forms of business finance.
How do they work?
Essentially, because they don't require repayments, small business grants can be considered as free money. In order to get one, a business owner must meet a certain grant's eligibility criteria, fill out an application and be accepted by whatever entity provides the grant.
Qualifying can be difficult for certain companies. This is because small business grants are usually aimed at specific industry sectors, regions, types of businesses, and community groups. For example, some grants will only be available to Indigenous Australians, others to women, and some to sustainability-led projects or businesses only.
Pros and cons
There are several pros and cons to small business grants:
- Free money. This is obviously the first and foremost benefit to receiving a small business grant. This is particularly true for businesses that may be struggling with cash flow, and therefore find it more difficult to repay a traditional loan. Some grants even offer substantial sums to eligible businesses.
- Accessible information. Thanks to the Internet, it's easy to find resources and information regarding what grants are available, who's offering them and where to apply. Finding the right grant for your specific business has never been more straightforward than it is today.
- Gain business credibility. On top of the free money, your business could gain something else – credibility. This will usually boost your business's visibility, promoting your brand. Grants are often highly coveted, and having your work stand out as something that is of notice to grant providers could hold you in excellent stead.
- Potential access to further funding. If you have already been awarded a grant, you may find that other organisations are more inclined to provide you with further funding, as they recognise you as a reliable candidate. You may also find it easier to be approved for a business loan later down the line, for the same reason.
- Time consuming. We've all heard the phrase "nothing in life is free". So, it stands to reason that there's a cost involved with grants – your time. There is often a large amount of paperwork to complete and additional documentation to provide, as well as business plans, demographics of your market and a detailed proposal.
- Strings-attached. Because grants are often provided by federal or state governments and not-for-profits, you will have to prove how you will use the money to benefit your state, community, etc. This will take a lot of meticulous research and planning. On top of this, you will be required to stick to your plan. Grants often come with restrictions and conditions, so be certain of the route you want to take before submitting your proposal.
- Tough competition. As mentioned earlier, competition for business grants is fierce. Hundreds of thousands of other businesses are in just the same position as you. Therefore, it's imperative that you make your business stand out. That being said, don't let this competition deter you. Believe in your business and work hard at your application and, with the help of this guide, there's no reason why you can't qualify for a grant.
- Renewal not guaranteed. Depending on the type of grant that you may qualify for, it may not always be renewed. Is the grant you're applying for a one-off, a guaranteed yearly sum, or do you have to continue to reapply? Ensure that if your funding is not guaranteed that you have the capability to keep your business on track without the grant funding.
State-based small business grants
Here's a state-by-state breakdown of the grants that your business may be able to qualify for:
New South Wales
City of Sydney "Quick Response" Grant
Amount available
Up to $5,000.
What is the funding for?
To help individuals and organisations through the COVID-19 pandemic, Sydney is releasing $500,000 in quick response grants. This is in addition to the federal COVID-19 responses.
The NSW government provides these grants in two categories:
- Event representation and emergency support
- Sporting or events representation up to $500 per year per individual or up to $2,000 per team.
- Essential emergency project support funding up to $2,000 per year.
- Strategic priorities
- Support of up to $2,000 per year in matched funding.
These are rolling grants, meaning that there is no application deadline. Grants will only end once the budget is exhausted.
Who's eligible?
- If your business has been affected by COVID-19 you can find out if you're eligible here.
TechVouchers NSW
Amount available
A voucher worth up to $15,000 that can be used at any eligible partner. Businesses are able to match the applicable voucher amount in cash and in-kind.
What is the funding for?
This program aims to increase collaboration between NSW's SMEs, as well as research organisations and universities that are participants of the Boosting Business Innovation Program.
Who's eligible?
Businesses with:
- Under 200 employees
- Less than $30 million in annual turnover
- More than a year in trading
Minimum Viable Product NSW
Amount available
Up to $25,000 to cover up to 50% of the approved project costs.
What is the funding for?
Startups in NSW looking to get their product or service off the ground with proof-of-concept consumer testing may be able to benefit from this grant.
Who's eligible?
Companies must:
- Be pre-revenue with a proof-of-concept ready to test
- Be able to demonstrate that at least 80% of the development costs will occur in NSW
Bin Trim Rebates Program
Amount available
A rebate of between $1,000 and $50,000.
What is the funding for?
This program is run by the Environmental Protection Agency in NSW. It aims to increase workplace recycling by offering rebates to SMEs that install recycling equipment. It's also available to small-scale recyclers managing SME waste in NSW.
Who's eligible?
SMEs which:
- Are located in NSW
- Have up to 399 employees
- Have implemented/are implementing on-site recycling equipment
Building Partnerships NSW
Amount available
Grants of up to $100,000 to help cover project costs.
What is the funding for?
This program offers to cover up to 35% of the cost of new pilot projects and new marketing partnerships.
Who's eligible?
Businesses must:
- Be tech-focused
- Be located in NSW
- Own the rights to commercialise your technology
Victoria
LaunchVic
Amount available
Unspecified
What is the funding for?
This is the state government's agency for supporting startups and innovative SMEs in Victoria. In 2015 it was given $60 million in the state budget to help fund local startups.
The fund provides the funding and tools necessary to bolster the skills of startup founders and promote inclusion and diversity. The goal of the project is to mould the startup ecosystem in Victoria into one that is internationally recognised. The agency recently closed round 8 of its funding.
Who's eligible?
Different rounds of funding tend to focus on different industry sectors. However, the industry the grant is focussing on is currently unspecified.
Regional Jobs Fund & Stronger Regional Communities Plan
Amount available
It varies, but usually up to $50,000.
What is the funding for?
This $500 million fund supports businesses in creating more jobs in regional and rural parts of the state across the streams of investment attraction, innovation and productivity, employment, market access and skills development.
Who's eligible?
Businesses must be undertaking activities to make or keep rural and regional jobs in Victoria.
Future Industries Manufacturing Program
Amount available
Up to $500,000.
What is the funding for?
This grant looks to help Victorian manufacturers to hire more employees, improve productivity, invest in growth and purchase new technologies.
Who's eligible?
Businesses must:
- Be based in Victoria
- Be in the manufacturing industry
- Have the capital to match $3 to every $1 granted through the program
Queensland
Small Business Adaption Grant Program – Round 2
Amount available
Up to $10,000.
What is the funding for?
This is the second round of funding from the Queensland government that aims to support small businesses subject to closure or highly impacted by COVID-19.
Up to $100 million is being made available, $50 million of which is specifically earmarked for regional small businesses located outside of South East Queensland.
These are rolling grants, meaning that there is no application deadline. Grants will only end once the budget is exhausted.
Who's eligible?
Businesses must have:
- Been subject to closure/highly impacted by shutdown restrictions announced
- Experienced a minimum 30% decline since 23 March 2020, over a minimum 1-month period as a direct result of COVID-19
- Fewer than 20 employees
- An ABN (active as at 23 March 2020)
- Registered for GST
- Be based in Queensland
- An annual turnover over $75,000 for the 2018–19 or 2019–20 financial year (you can also provide financial records that show this will be met for recently started small businesses)
- A payroll of less than $1.3 million
- Been declared insolvent or have owners or directors that are an undischarged bankrupt
Back to Work South East Queensland
Amount available
Up to $20,000.
What is the funding for?
This fund aims to improve employment opportunities for elderly, young and long-term unemployed citizens by offering businesses that employ them payments of up to $20,000.
Who's eligible?
Businesses must:
- Have a proven and reputable track record in employing people
- Demonstrate a "genuine commitment to ongoing employment of the employee"
Business Development Fund QLD
Amount available
Between $125,000 and $2.5 million.
What is the funding for?
As a fairly standard form of funding, The Business Development Fund provides funding to businesses that are developing or commercialising an innovative product or service.
Who's eligible?
Businesses must:
- Find a co-investor who agrees to match the funding
- Be prepared for both the co-investor and the fund to become business shareholders
South Australia
$10,000 Emergency Cash Grants for Small Businesses
Amount available
Up to $10,000.
What is the funding for?
To support small businesses and not-for-profits who have been highly impacted by the COVID-19 pandemic.
This grant is being funded from the state government's $650 million Jobs Rescue Package. This is a rolling grant, so there is no application deadline. Grants will only end once the budget is exhausted.
Who's eligible?
All businesses must:
- Have an active ABN
- Be based in South Australia and have been carrying out business operations in SA as at 30 September 2020
- Have an annual turnover of more than $75,000 (excluding GST) in either 2018-19 or 2019-20
- Have been participating in the Commonwealth Government's extended JobKeeper Payment scheme from 28 September 2020
- Not engage in illegal activity
Businesses with employees must:
- Employ people in South Australia as at 30 September 2020
- Have total Australian payroll of less than $1.5 million in either 2018-19 or 2019-20
- Not be entitled to a payroll tax waiver or deferral under COVID-19 support measures introduced by the South Australian Government
Businesses with no employees must:
- Be operating from a commercial premise
- Not employ people in South Australia as at 30 September 2020
Small Business Bushfire Recovery Grant
Amount available
Up to $50,000.
What is the funding for?
This grant offers financial assistance to bushfire-affected small businesses located in Yorketown, Cudlee Creek, Kangaroo Island and Keilira. Successful applicants in these areas can access funds to cover costs associated with clean-up, restoration and rebuilding.
Who's eligible?
Businesses must:
- Be located within the bushfire-affected regions
- Have suffered direct damage to premises and/or tools of trade
- Have a valid active ABN
- Employ less than 20 full-time employees
Tasmania
Small Business Emergency Support Grant Round 2
Amount available
Up to $2,500.
What is the funding for?
This second round of Emergency Support Grants from the Tasmanian government aims to support businesses that are struggling with financial hardship.
There is no deadline for applications. Grants will only end once the budget is exhausted.
Who's eligible?
Businesses must:
- Be based in Tasmania
- Have not received funding under the first round of Emergency Support Grants
Australian Capital Territory
ACT Microcredit Loan Program
Amount available
- Interest-free: Up to $3,000
- Low interest: $3,000 to $10,000
What is the funding for?
Not strictly a grant, this government-funded support is a form of interest-free or low interest loan.
Low-income earners looking to start a business, or for cash flow assistance for their existing business, can receive interest-free loans of up to $3,000, or low-interest loans of up to $10,000, to purchase new company equipment.
Who's eligible?
You must:
- Have an established or semi-established business in the ACT
- Have a combined family income of under $75,000
Northern Territory
Small Business Survival Fund
Amount available
$2,000 to $50,000 (plus additional cash boosts and support payments).
What is the funding for?
The Jobs Rescue and Recovery plan's Small Business Survival Fund is a $50 million initiative aimed at supporting small businesses that have been affected by COVID-19, and helping them to survive the physical distancing requirements response to the pandemic.
There is no application deadline for this support. Grants will only end once the budget is exhausted. Sole traders and corporate entities may apply.
Who's eligible?
Businesses must:
- Have had their turnover, staffing levels, etc, adversely affected by restrictions put in place by the government
- Agree to use funds for an "approved purpose"
- Be operating in a defined industry sector (visit business.nt.gov.au/recovery for more details of eligible sectors)
- Comply with the NT Government's "Buy Local" policy requirements
Regional Economic Development Fund + Trade Support Scheme
Amount available
Up to 50% of a project.
What is the funding for?
The Regional Economic Development Fund and the Trade Support Scheme offer to cover up to 50% of a business's costs for both local economic development and international marketing activities.
Who's eligible?
Businesses must:
- Show plans for a practical project designed to benefit the state and its people, while providing local employment, OR
- If looking abroad, demonstrate that the project will bring trade and economic benefits to the Northern Territory
- Have the capital required to back up the remaining percentage of their project
Indigenous Business Development Program NT
Amount available
Up to $30,000.
What is the funding for?
Indigenous business owners in the NT can receive funding to help start or continue growing their business, as well as creating new employment and developing new skills.
Who's eligible?
To be eligible you must:
- Be a resident of NT
- Have a business that is at least 50% Aboriginal owned and operated, and is based and registered in the NT
Applications must show commitments where appropriate from indigenous land councils.
Federal small business grants
The following is a breakdown of small business grants that are available nationally:
Export Market Development Grant
Amount available
- Up to 50% of eligible promotion expenses above a threshold of $5,000, provided that their total expenses amount to more than $15,000.
- Eligible applicants can receive up to 8 grants, although the maximum amount a business can receive initially is $60,000.
What is the funding for?
The Federal Government's Export Market Development Grant (EMDG) is a cash rebate program that encourages more Aussie businesses to export goods.
Eligible businesses will receive a 50% cash refund for overseas marketing expenses. Eligible marketing expenses fall under the following categories:
- Advertising (Google, Facebook, Instagram, Amazon, Influencers, etc)
- Free samples
- IP and trademarks
- Marketing consultants/agencies
- Overseas representatives
- Overseas buyers
- Trade fairs
- Travelling overseas
This particular grant is non-competitive – if you are eligible, you will receive a grant.
A first-time applicant can claim expenses as far back as 1 July 2018.
Who's eligible?
To be eligible you must:
- Have an active ABN/ACN
- Export or be intending to export
- Not have previously received 8 EMDG rebates
- Have an annual turnover of less than $50 million
- Have spent at least $15,000 in the past 2 years promoting your goods, services or IP to potential overseas customers
- Be seeking to sell or licence one of the following:
- Products made or designed in Australia (even if they're manufactured overseas)
- Licensing of intellectual property and know-how
- Provision of most services
- Inbound tourism, conferences, education
Matched funding for startups and small business to access CSIRO support
Amount available:
Matched funding between $10,000 and $50,000.
What is the funding for?
The CSIRO (Commonwealth Scientific and Industrial Research Organisation) Kick-Start program provides matched funding to Australian startups and small businesses to help them grow their companies.
Within the program, CSIRO also provides startups and small businesses with its expert guidance. This helps them to undertake research activities that will enable them to:
- Research a new idea with commercial potential
- Develop a novel or improved product or process
- Test a novel product or material
Who's eligible?
To be eligible, a startup or small business must:
- Have an ABN/ACN
- Be based in Australia
- Be registered for GST
- Demonstrate the ability to dollar-match the funding
- Have an annual turnover of less than $1.5 million, in the current and each of the 2 previous financial years
- Have been a registered company for less than 3 years
Entrepreneurs' Programme
Amount available
- Up to $500,000 of matched project funding for Research Commercialisation Entities and Eligible Partner Entities
- Up to $1 million of matched project funding for all other eligible applicants
What is the funding for?
This program aims to help SMEs, entrepreneurs and researchers to commercialise their business ideas by offering both cash grants and guidance from experts:
- Accelerating Commercialisation Grants. Offers businesses up to 50% (capped at $250,000) of expenditure of a given project for commercialisation offices and eligible partner entities, and $1 million for other applicants.
- Commercialisation Guidance. Expert advisers can also provide strategic advice, feedback on applying for an Accelerating Commercialisation Grant, and help with accessing a range of portfolio services.
Both of these services are available year-round.
Who's eligible?
Businesses are required to be one of the following entities to be eligible:
- A company incorporated in Australia and a trading corporation, where your trading activities are deemed sufficient to be described as such
- A Research Commercialisation Entity or Eligible Partner Entity as defined in the grant opportunity guidelines
Businesses must also be:
- Liable to pay income tax in Australia
- Registered for GST
- Undertaking an eligible project
- Owners of and have access to or beneficial use of any intellectual property they need to undertake the commercialisation project
- Able to provide evidence of their ability to fund at least 50% of eligible project expenditure, such as funding strategy and a bank statement or loan agreement, and an Accountant Declaration that confirms their ability to fund the project
- Be able to prove a combined annual turnover of less than $20 million for each of the previous 3 financial years – unless they are controlled by a Publicly Funded Research Organisation or Eligible Partner Entity, in which case they must have annual turnover in isolation of less than $20 million for each of the 3 financial years prior to lodgement of the application.
Research and Development (R&D) Tax Incentive
Amount available
- Businesses with annual turnover under $20 million can claim a 43.5% refundable tax offset against R&D expenditure.
- All other eligible companies can claim a 38.5% non-refundable tax offset against R&D expenditure. Non-refundable amounts that are not used in a given income year can be carried forward into future income years.
What is the funding for?
This is a refundable tax offset against R&D tax expenditure. It is available to businesses of all sizes.
Who's eligible?
Businesses must:
- Be liable to pay income tax in Australia
- Have eligible R&D expenditure greater than $20,000
- Conduct at least one activity that meets the definition of a core R&D activity
Businesses have until 10 months after the end of the income year in which the R&D activities occurred to apply for the tax break, and they must register for every income year in which they plan to claim the offset.
Australian Apprenticeships Incentives Program (AAIP)
Amount available
A wage subsidy of 50% for apprentice or trainee wages for 9 months from 1 January 2020 to 30 September 2020.
From 1 July 2020 the Australian Apprenticeships Incentives Program (AAIP) was scheduled to be replaced with a new incentives program for employers of apprentices and trainees, the Incentives for Australian Apprenticeships (IAA).
However, due to the economic impact of COVID-19, the government has since revised the implementation schedule of the IAA. The IAA will now commence from 1 July 2021.
Following the introduction of the IAA from 1 July 2021, employers claiming incentives for an apprentice or trainee who commenced prior to 1 July 2021 will be grandfathered under the AAIP.
What is the funding for?
The AAIP provides a wage subsidy to small businesses to support the retention of existing apprentices and trainees. This is irrespective of the COVD-19 response, i.e. JobKeeper payments.
Who's eligible?
The apprentice/trainee must:
- Have been in-training with a small business as at 1 March 2020
Additional eligibility criteria may apply.
Business Development and Assistance Program
Amount available
Competitive loans from $10,000.
What is the funding for?
This program provides concessional business loans, asset leasing, industry insight and more to Indigenous Australians who are looking to start or grow an SME on a national basis.
Who's eligible?
Businesses are required to be one of the following entities to be eligible:
- A company incorporated in Australia and a trading corporation, where your trading activities are deemed sufficient to be described as such
- A Research Commercialisation Entity or Eligible Partner Entity as defined in the grant opportunity guidelines
To be eligible, applicants must:
- Be aged 18 or over
- Be of Aboriginal and/or Torres Strait Islander descent
- Own at least 50% of the business, or have at least 50% of the business owned by people of indigenous descent
- Be solvent
How do I apply for a small business grant?
To apply for a specific grant, you must contact the appropriate body and submit your details. To get started, you can click on any of the above links to be taken to the appropriate page, where you can find more information on how to apply. Each grant may require a unique set of information and documentation.
Tips for applying
- Have a grant strategy. It helps to know which grants you are eligible for ahead of time. This means you can map out an application timeline and systematically address each grant that you want to apply for.
- Construct an elevator pitch. This is a single-sentence about your company's purpose.
- Tailor your proposal. Ensure that you meet all of the outlined eligibility criteria and keep your application specific to these criteria. Be sure to include as much information as possible about the market you operate in, your customer base, the skills and experience of your team, etc.
- Ensure that you have the necessary revenue. If the grant you are applying for requires you to match the grant amount with the same amount of your own revenue, make sure that you have this to hand.
- Have a thorough business plan. If you don't already have a business plan, make one. If you have one, ensure that it's as up-to-date as possible. For tips on how to create a winning business plan, click here.
- Consider specific projects. A lot of grants are specific to business projects, as opposed to the business as a whole (though not always). Ensure that you include specific business activities such as product development, making import/export agreements, and recruiting or training staff. Be sure to include details such as market demographics, etc.
- Answer every application question. Be succinct and answer all the questions on the application as thoroughly as possible.
Alternatives to small business grants
If you find that your business doesn't qualify for a small business grant, there are a number of alternatives:
- Small business loans. While it isn't "free money", securing finance for your business via a small business loan can often be the ticket to set you on the right track to business growth. To avoid overpaying for your loan, aim to find a loan product that you're eligible for with the lowest interest rate and fees possible. If you're a B2B startup or SME and are unsure that you'll qualify for finance from a traditional lender, invoice financing companies may be able to help you.
- Peer-to-peer business loans. These platforms work like marketplaces in which potential investors are matched with potential borrowers. Because they have fewer overheads, P2P platforms can offer competitive tailored interest rates, in comparison to the bigger banks. These alternatives to traditional business loans are also risk-based, meaning that businesses without excellent credit histories may still be able to qualify (though they will likely be offered higher rates).
- Angel investment. Angel investment focuses on high-risk, high-return investment in emerging companies. It can be a great way of financing a small business with strong growth prospects. This is because potential investors will consider the future potential of your business, as well as your current financial performance.
- Crowdfunding. Depending on your business model, you may want to consider platforms like Kickstarter, which offer incentives to potential consumers in exchange for funding, to get your business off the ground. There are also equity crowdfunding platforms like VentureCrowd, that offer funding in exchange for company shares.
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