Earlier today, the Queensland Government released the details for round 4 of its Business Growth Fund. The Business Growth Fund (BGF) targets high-growth businesses who can accelerate growth, drive Queensland’s economy and employ more Queenslanders.
Business Growth Fund
The Business Growth Fund provides funding for small and medium-sized high-growth businesses to buy specialised equipment, enabling them to unlock growth potential, increase production, expand their workforce, and maximise economic returns to move them to the next stage of growth.
Funded businesses are expected to:
- increase confidence for growth, transitioning from small to medium-sized
- increase productivity, turnover, profit and employment by 20%
- improve confidence to automate, scale up, increase market share, diversify and/or exploit exporting opportunities.
The program is administered by the Department of Employment, Small Business and Training (DESBT).
Available Funding
The Business Growth Fund offers funding up to $50,000 to help established businesses purchase specialised equipment to support business growth. Successful applicants must co-contribute at least 25 per cent of project costs. The Queensland Government will not fund projects with a total cost of less than $33 333 (excluding GST) or payments that are made before the approval date.
Eligible and Ineligible Activities
The grant funding must be used to purchase specialised equipment to meet business growth. The equipment must have a direct link to increasing employment and maximising economic returns.
Specialised equipment is considered an independent or additional piece of complex machinery that will have a direct impact on the operations of the business to increase, automate or enhance productivity and presents a significant investment to the business. The impact of the equipment unique to the growth of the business and local economy will be taken into consideration.
Examples of eligible highly specialised equipment include (but are not limited to):
- production equipment to meet otherwise unachievable growth demand
- advanced manufacturing or digital equipment and systems
- advanced logistics systems and equipment.
The Queensland Government will not fund:
- activities bought using crypto-currencies, barter, or service in-kind
- GST registration and fees
- real estate/property, hire, lease, or rental fees
- goods, services, or fees from related parties (includes companies with common shareholdings or directors, employees or immediate family)
- travel
- franchise fees
- purchase of stock
- general business operating costs (e.g. bookkeeping/accounting, tax returns, marketing/advertising activities)
- services or standard digital technology not considered specialist to the extent required (as determined by assessment panel)
- delivery fees, credit card surcharges and international transaction fees
- memberships and joining fees
- salaries
- fleet vehicles (including forklifts).
Eligibility Criteria
Potential applicants should be aware that stringent eligibility criteria apply to applicants and projects across the three stages of the application process, culminating in a verbal pitch session to a panel. Only a select number of EOI applications (stage 1) will be invited to complete a full application (stage 2).
To be eligible for this grant, your business must:
- have a trading history of a minimum 3 years at the time of applying for the grant
- have a minimum turnover of $500,000 for the last financial year
- have fewer than 50 employees at the time of applying for the grant
- have an active Australian Business Number (ABN) and be registered for GST
- not have been approved for funding under an earlier round of the Business Growth Fund
- have Queensland headquarters
- have competitive opportunities in domestic or international markets
- be experiencing growth and have clearly defined high-growth and employment opportunities in Queensland
- not be insolvent or have owners/directors that are an undischarged bankrupt.
Your business must also maintain this eligibility for the duration of the grant funded activity.
Application Process
The application process includes 3 stages:
- Stage 1: Expression of interest
- Stage 2: Full application
- Stage 3: Pitch
Stage 1 opens for expressions of interest (EOI) at 9am, 31 May 2022. Stage 1 EOIs may close while you are mid-application. Before you submit, your application must be complete and every question validated.
Stage 1 will close for EOI applications at 5pm, 30 June 2022 or when sufficient applications for a competitive assessment have been received. Not all applications will be funded. The program is competitive, meaning applications are assessed against eligibility and assessment criteria. Interested businesses can review the guidelines and prepare the necessary documentation required in readiness to submit when Expression of Interest applications open on 31 May 2022.
Recommended Next Steps
If you are eligible for the Business Growth Fund, I recommend you read more about the Fund and Round 4 on the Business Queensland website here.
A detailed eligibility checker is available here.
If you have any questions about the Business Growth Fund, or would like any assistance in the application process, please do not hesitate to contact the JTW Accountants team.
