If you’re an SME and planning to hire staff in NSW in the near future, there’s likely to be a grant to suit your business. I met with a young executive representing the NSW Government’s Jobs for NSW scheme the other day and was pleasantly surprised by what’s currently on offer.
Startups and young businesses
Jobs for NSW offers a number of funding propositions for startups and expanding businesses if their business strategy involves creating permanent jobs in NSW. Funding is designed to support promising startups to develop a proof of concept to a minimum viable product stage and ranges from small matching grants up to $25,000.
This grant is ideal for startups who are not yet generating revenue but need funds for a market study to test the strength of their business model. Of course the business must be based in NSW but at this point, the grant eligibility doesn’t require employees.
At the next level, Accelerating Growth Loans are on offer which entail providing direct finance to emerging and fast growth SMEs to accelerate their growth. Eligible SMEs must demonstrate revenue of $500,000 plus within 12 months to create jobs in either metro Sydney, Newcastle or Wollongong. Loans amounts range from $200,000 to $500,000.
This facility is designed to help businesses where traditional funders are unable to and it doesn’t require any personal assets or guarantees for security. A similar funding offer is available for SMEs expanding in regional areas of NSW.
If you are a NSW business which already has five employees and you plan to expand by creating a further 20 additional Full Time Equivalent employees within three years in NSW, then you may be eligible for a Strategic Growth Loan. Subject to further criteria, these loans can be up to $1,200,000 and come with flexible payment terms including the flexibility of multiple advances.
Finally, a loan for innovation is on offer for businesses who are unable to access the full quantum of funds needed to enable business expansion. It comes in the form of a partnership with an Australian financial institution whereby Jobs for NSW will provide – and act as Guarantor for – up to 50% of the loan (up to $5 million of the loan amount).
Business must have revenue of $3 million or more to apply but can be located in both regional and metropolitan NSW. However as you would expect, an eligibility criterion is that the business is creating more jobs in NSW.
Maximising this opportunity
Newcastle startup Elite Robotics featured on Jobs NSW site as a recipient of a $25,000 Minimum Viable Product Grant: Manual lawnmowing will soon be a thing of the past!