Even in the most economically challenging times — thanks Coronavirus — the government can be one of the best sources for business funding. How? Via government grants.
You might be surprised to know that there are a huge number of grants available to Australian businesses at any given time.
Whether you’ve never considered one, need a hand determining if your business is eligible or aren’t sure what a government grant really means, sit back and let us take you through the four grants you need to be aware of.
What are government grants?
Firstly, a government grant is a sum of funds given out by a local, state or federal government. Grants are given to businesses for a range of purposes that ultimately aim to help the government accomplish a particular objective like supporting innovation or boosting particular industries onshore.
Although they generally don’t have to be repaid, grants aren’t “free money”. Funds received by way of a grant have to be utilised for a specific purpose, as outlined in the grant application.
Grants are generally tied to a project with a clear beginning, end and set of measurable outcomes. This means they can rarely be used for ongoing operational costs or business as usual activities.
How could your business benefit from a government grant?
A major benefit of government grants is that they offer a line of funding to those that may not be able to access funding from elsewhere.
For instance, bank lending or investment capital may be unavailable to a startup that is deemed high risk or to a business with insufficient cash flow to fund its next project.
They’re also widely available. There are so many to choose from across all industries, that it can actually become quite difficult for businesses to strategically prioritise the grants they should apply for.
As touched on above, another significant benefit is that when distributed properly, they generally don’t need to be repaid. This makes government grants a very appealing (and competitive) form of finance.
And while the competitive nature of government grants can be a challenge, receiving one can significantly boost a business’ credibility. After all, beating out a competitive field comes with bragging rights.
Types of government grants
R&D tax incentive
The R&D tax incentive is a generous, easily-accessed government program that assists businesses with offsetting some of the costs of performing research & development. It is non-competitive, so any companies eligible to claim will get the benefit of the R&D tax incentive.
Export Market Development Grant (EMDG)
The EMDG supplements costs associated with promotional activities relating to exports, including inbound tourism. Your business can receive a refund of up to 50% of eligible expenditure.
Minimum Viable Product (MVP)
MVP grants are designed for pre-revenue technology startups to help them engage with a potential customer or channel to achieve market validation and first sale.
Early-Stage Innovation Company (ESIC)
The ESIC program provides tailored advice to small and medium businesses. Businesses can apply for grants to assist with implementing programs that can help the business transform and reach its full potential.
How Myssy + Co can help
We can help you access the best grants, tax incentives and government initiatives available to your business. By working closely with you to identify which schemes are applicable to your business, we can then effortlessly assist you to prepare the documents required and provide evidence to support your application.
Want to know more? Get in touch with our friendly team today.