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Exploring Small Business Grants NSW

by | Sep 27, 2023 | Business and Investment Structures, Tax and Compliance | 0 comments

Home | Articles | Exploring Small Business Grants NSW

A business grant is money given by the government to help small businesses. This financial help from the government aims to help small businesses expand, develop new ideas, or get back on their feet after tough times. This kind of financial assistance exists to boost local work opportunities and give small business owners the funds they need for business growth.

At any given time there are multiple kinds of grants which small business owners can apply for in NSW. These depend on various things like what kind of business you have, how many people work there, and where it’s located. The NSW Government has several general grants that small businesses can apply for as well. Examples include the Small Business Fees and Charges Rebate and SafeWork Small Business Rebate.

In early 2023, there are special grants for certain types of businesses, like tech start-ups and those in primary production like fishing. Keep in mind that grants can change or end, so it’s good to stay up-to-date on what’s available. There are eligibility criteria to meet, and it’s important for eligible businesses to know the closing dates for applications.

This support from the NSW Government and the Australian Government is part of broader support programs aimed at business development and growth. Other forms of financial support, like loans, may also be available, but a grant doesn’t need to be paid back so it’s a good resource for eligible small businesses looking for financial aid to cover operational costs or meet other eligible costs.

What can a grant do for my business?

Grants can help with many different needs, such as paying for day-to-day costs, buying new tools, or doing research to make your business better. Small business grants give financial help so your business can run and grow. The best part is, you don’t have to pay this money back, making a grant a really good way to get the funds you need.

Is a grant different from a loan?

Yes, grants and loans are different even though both have rules you must follow. The main thing that sets them apart is that you have to pay back a loan, usually with extra money called interest. But a grant is money you don’t have to pay back, as long as you use it the way it’s supposed to be used. Usually, you get a loan from a bank, while a grant comes from places like the government or companies, and it’s for a special reason like helping your business grow.

Pros and cons of loans

Grants and loans are popular ways to get the financial support you need, but they come with their own sets of pros and cons. Here, we’ll break down the advantages and disadvantages of each to help you make an informed decision.
  • Pros of getting a loan:
    • It’s usually easier to get a loan than a grant.
    • You can borrow from different places like banks, private people, or other lenders, for personal or business needs.
    • How much you can borrow depends on your credit score, which looks at how good you are at paying back money.
  • Cons of getting a loan
    • Sometimes, you might need to give something valuable, like your car or house, as a promise to pay back. This is called collateral.
    • If you can’t pay back the loan, the lender can take that valuable asset through a step called foreclosure.
Illustration depicting the advantages and disadvantages of loans. On the left, it highlights the simplicity of obtaining a loan from various sources like banks and individuals for personal or commercial use based on creditworthiness. On the right, it mentions potential disadvantages, including the need for collateral and the risk of foreclosure.

Pros and cons of grants

When it comes to funding your business or special projects, grants offer another avenue alongside loans. While they may seem like free money, it’s important to weigh the benefits and drawbacks. In this section, we’ll explore the upsides and downsides of opting for a grant to help you decide if it’s the right fit for your financial needs.

The good things about grants

Grants are like gifts you don’t have to pay back, so they’re essentially free. You don’t have to worry about interest building up because there’s no repayment. Plus, getting a grant won’t put your credit score at risk or make you lose stuff you own if you can’t pay it back, simply because there’s nothing to pay back!

The not-so-good things about grants

Most of the time, grants are for businesses or special situations, like helping out during unexpected events such as COVID-19. Applying for one can be tough because there are usually strict rules, and if you do get one, you might have to follow certain guidelines. Since many grants come from government groups, waiting to hear if you got one might take a while. That means if you need money right away, grants might not be the best choice.
This graphic outlines the advantages and disadvantages of grants for your business or special projects

How to look for small business grants online

If you’re looking for grants for your small business, it’s essential to know where to look and when. Grants are often available for a short time. Here are some official places you can check for the latest grants available in New South Wales:
Don’t forget to watch the closing dates, because they can change. Whether you’re just starting out as a sole trader or run a more settled small business looking to grow or get through tough times, there are different kinds of funding you can look for. State and federal government grants and support programs are there for small businesses, no matter what stage they’re at.

How to sign up for small business grants in NSW

The process of applying for a small business grant in New South Wales can differ depending on the grant you’re interested in. But generally, you can expect the following steps:
  • Find the grant you want on the Services NSW or NSW Government website.
  • Look at the rules to make sure you can apply.v
  • Get together all the papers you need.
  • Go to the website of Services NSW or NSW Government and find the grant’s page. Usually, there’s a button that says “Apply online” or “Start online application.” Click it and do what it tells you to.
Remember, each grant might have its own special steps, so always read everything carefully.

Eligibility and documents needed for NSW small business grants

When applying for a grant in New South Wales, it’s important to know that each grant has its own set of rules and required papers.

Here’s what you generally need to know:

Eligibility

Common eligibility points for NSW grants might include:
  • A valid Australian Business Number (ABN) in NSW.
  • Being part of the business area that the grant aims to help.
  • Already doing, or planning to do, things that the grant wants to support.
  • Being active in business actions that are in line with the grant’s purpose.
  • Going through tough times due to unexpected events like a disease outbreak or wildfires, especially for grants aimed at helping recovery.

Documents you’ll need

If you find out you can apply for a grant, you’ll probably have to show some papers to prove it, such as:
  • Proof that you meet the rules to apply for the grant.
  • Info about your business and any papers that go with it.
  • Papers that show the costs you’re asking to get money back for.
  • IDs for yourself or other key people in the business.

Tax implications of NSW small business grants

In New South Wales, not all small business grants are taxed the same. While some grants are viewed as non-assessable, non-exempt (NANE) income by the Australian Taxation Office (ATO), making them tax-free and not reportable on your tax return, others might not fall under this category.

If a grant isn’t classified as NANE income, it’s possible you’ll need to pay tax. To ensure you understand your tax responsibilities, it’s wise to get in touch with the ATO or seek advice from a professional familiar with business taxation matters.

Boosting your business with the Accelerating Commercialisation Program

Aimed at small to medium-sized enterprises, inventors, researchers, startups, and Research Commercialisation Entities, the Accelerating Commercialisation program is crafted to assist in launching a novel product, service, or procedure into the market. The program functions in two phases: initial guidance on commercialisation and, subsequently, grants.

When you seek commercialisation advice, eligible candidates are paired with an AusIndustry Customer Service Manager or an Accelerating Commercialisation Facilitator. Their role is to offer tailored guidance, focusing on your enterprise and the optimal ways to monetise your intellectual property.

If you’re among the chosen grant candidates, you can expect to get funding that matches your project’s budget up to $1 million. If you’re a Research Commercialisation Entity or an Eligible Partner Entity, the matching funds can go up to $500,000.

To qualify for this initiative, your novel product is essential, and you’ll need to pass the turnover test. This means your combined annual earnings shouldn’t exceed $20 million over the past three financial years. For application details, visit the business.gov website.

Early-stage tech startups: The Minimum Viable Product grants

For technology startups that haven’t started making sales yet, Minimum Viable Product (MVP) grants could be a helpful financial resource. These grants aim to support startups in reaching out to future customers, launching their product, and securing their first sales.

If your grant application succeeds, you’ll get funding that matches up to 50% of the agreed-upon project expenses, capped at $25,000. You’ll receive 30% of this funding right at the start, and the remaining 65% will be given once you’ve completed and verified your MVP.

To find out how to apply, head over to the NSW government website.

Strategic growth with SMART Projects and Supply Chains

If you have an incorporated company, the SMART Projects and Supply Chains program could be worth exploring. Part of the Entrepreneurs program, this initiative aims to elevate your business’s performance by giving you access to valuable or strategic projects.

Upon joining, your business will be paired with a facilitator. This expert will support you in identifying market opportunities, addressing skill shortages, tackling challenges, and crafting a path to success.

Additionally, the initiative includes Growth Grants, offering up to $20,000 in financial support to help you carry out your growth plans.

For application details, visit the NSW government website.

Boost your business with the High Growth Accelerator

Part of the Entrepreneurship access, the High Growth Accelerator program provides tailored support for businesses that operate within select growth sectors. By joining this initiative, your business will benefit from an independent facilitator’s guidance for over two years. This includes valuable insights, mentorship, resources, and various tools to help your enterprise thrive and gain a competitive edge.

For more details and application procedures, head over to the NSW government website.

Elevate your research with the CSIRO Kick-Start

If you’re a startup or a small-to-medium-sized business in need of research funding, the CSIRO Kick-Start program could be an excellent option. This program offers dollar-matched funding for research projects, ranging from $10,000 to $50,000. This financial support covers a variety of expenses, including salaries, accommodation, travel, and administrative costs.

But the benefits don’t stop at funding. Participating businesses also gain access to CSIRO’s vast expertise, helping you research and develop new products, services, or processes, as well as test them in real-world applications. Plus, if you’ve completed your initial project successfully, you can apply for a second round of funding—so long as the total cost of your project doesn’t exceed $50,000.

Boost your rural research with Agrifutures Australia RD&E Investment

If your organisation is involved in research that could benefit rural sectors, you may want to consider applying for the Agrifutures Australia RD&E Investment. This funding program specifically aims to support research that contributes to the long-term sustainability and profitability of rural industries, particularly those that do not have their own Research and Development Corporation (RDC).

The investment amount is variable and is determined based on the priority level of the research. Agrifutures Australia updates its list of research priorities for various industries on an annual basis, helping to ensure that the most impactful and necessary research receives funding.

For more information and to apply, visit the business.gov.au website.

Grants for Aboriginal or Torres Strait Islander Peoples

Indigenous entrepreneurs in Australia have access to unique funding opportunities to help them grow their businesses. If you’re an Indigenous business owner, you have the option to register your company as an Indigenous corporation. This registration makes you eligible for a variety of specialised business grants and incentives tailored to support Indigenous businesses.

You can check your eligibility for this type of registration on the official government website.

In addition to this, the Indigenous My Business (IBA) program offers a comprehensive package of support, which includes guidance, training, and financial assistance. This program is specifically designed for entrepreneurs and business owners with Indigenous or Torres Strait Islander heritage and aims to assist in the growth and development of their businesses.

NSW Business Grants for Female Entrepreneurs

In an effort to boost the economic participation of women, the NSW Government offers educational grants aimed at female small business owners or operators within the state. The grant comes complete with financial assistance as well as discounted resources and mentorship opportunities to help you succeed.

NSW business grants for Energy Sustainability

In an effort to encourage sustainable practices and innovation in renewable energy, the New South Wales Government offers special grants through its Advancing Renewables program. This program is specifically tailored for businesses that are operating within the sustainability sector. The primary goal is to provide financial support for the development of renewable energy projects, fostering innovation and pushing the boundaries of what’s possible in the renewable energy industry.

By offering these grants, the NSW Government aims to make renewable energy a financially viable option for a wide range of businesses and organisations.

NSW storm and flood disaster recoveryd

When natural disasters like storms and floods strike, they can have a devastating impact on small businesses and not-for-profit organisations. To alleviate some of the financial burdens these entities face in the aftermath, the New South Wales Government offers a flood disaster recovery grant. Qualifying businesses and organisations could receive up to $50,000 to help cover the immediate costs of clean-up and restoring their operations to normalcy.

If your small business or not-for-profit organisation has been directly affected by recent weather-related disasters, you may be eligible for this financial assistance.

For more information on how to apply and to determine your eligibility, consult the Service NSW website.

Contact details for grant information in NSW

If you have questions or require assistance with your grant application in New South Wales, multiple avenues of support are available through Service NSW. They can guide you through the application process, help you understand eligibility requirements, and offer additional information tailored to your needs.

Here’s how to get in touch:

  • Phone: call Service NSW at 13 77 88 for local inquiries or +61 2 8894 1555 for international calls.
  • In-Person: visit a Service NSW center near you for face-to-face support and guidance.
  • Mail: for written inquiries or information, you can write to Service NSW at GPO Box 7057, Sydney NSW 2001.
Don’t hesitate to reach out for the help you need to successfully apply for a grant that could support your business or initiative.

Next Step is to Contact TMS Financials

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Book a free financial health review to see the difference we can make in your financial future.

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Disclaimer

This outline is for general information only and not as legal, tax or accounting advice. It may not be accurate, complete or current. It is not official and not from a government institution. Always consult a qualified professional for specific advice tailored to your unique circumstances.

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