SMALL BUSINESS GRANTS PROGRAM GUIDELINES

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Small Business Grants

Program

Supporting our community

The City of Melbourne offers a wide range of grants and sponsorship opportunities to support the Melbourne community. Grants and sponsorships enable successful applicants to deliver quality programs, events, products and services significant to Melbourne, bringing social and economic returns. The small business grants program is supported through the City of Melbourne’s economic development initiative, Enterprise Melbourne – helping local businesses grow, learn and prosper.

About grants and sponsorships

These guidelines relate to the small business grants program. There are also more than 20 other grant and sponsorship types including social enterprise, arts and community services, Active Melbourne, business events and the event partnership program.

Applicants in any category can only apply to one grant program in any given year. If a project has already been funded or is being funded by one of the programs, you will not be eligible to apply to another grant program for that project.

Applicants are advised to carefully review the guidelines provided here and, if necessary, check the guidelines of other grant programs to decide which is the best grant program for your circumstances. For more information about our other grants and sponsorship programs go to

melbourne.vic.gov.au/grantsandsponsorships Enterprise Melbourne

The City of Melbourne’s Enterprise Melbourne website provides information and services to support businesses of all shapes and sizes to start-up, grow and prosper in the city. Visit the website for permits, fee payments, the latest local law and health regulations, networking opportunities and business support programs.

melbourne.vic.gov.au/enterprisemelbourne Small business grants program categories

• Start-up

• Business expansion • Export entry

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Eligibility

Checklist

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Are you located within the City of Melbourne boundaries or are you planning to relocate within the municipality?

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Do you have 20 or fewer employees?

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Do you have an Australian Business Number (ABN)?

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Is your proposal genuinely innovative, creative and does it demonstrate a strong point of difference?

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If you are proposing an online only business, can you demonstrate why you need to be physically located in the City of Melbourne? Can you demonstrate how the City of Melbourne will benefit from your proposal?

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Do you hold the rights to the intellectual property for your product and/or service?

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Does your proposal enhance the city’s reputation for innovation, business vitality and environmental sustainability?

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Does your proposal create employment opportunities and increase the level of business investment?

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Does your proposal demonstrate solid market potential?

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Have you completed a market analysis or have you conducted a strengths, weaknesses, opportunities and threats (SWOT) analysis?

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For exporters, does your proposal increase the overall value and volume of exports from the city?

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For business expansion or export grants, do you have a complete, up-to-date set of financial statements?

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For business expansion grants, are you introducing a completely new product/service into your company portfolio?

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For member-based organisations, does your proposal deliver significant tangible outcomes for your members?

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ABOUT SMALL BUSINESS

GRANTS

Grant objectives

• To encourage the establishment, growth and retention of sustainable businesses, including micro businesses, that enhance the City of Melbourne’s reputation for innovation, creativity, business vitality, diversity, inclusiveness and environmental sustainability.

• To create employment opportunities and increase the level of business investment in the municipality. • To support innovative businesses that demonstrate

solid market potential and a sound business model, including long-term financial viability.

• To increase the overall value and volume of exports from the City of Melbourne municipality.

• To foster new partnerships and collaboration between businesses and business support groups. The grants seek to encourage and support new, creative and diverse business activities that will contribute to a thriving and competitive business environment within the city.

In addition, the program seeks to encourage a greater number of city-based businesses to engage and expand their export activities.

What do we mean by innovation?

Innovation is not invention, nor is it doing things slightly differently to the way others are doing them already or bundling together existing products and services. Innovation means doing something in a new, creative or novel way. It may involve improving on an existing service or product in an original way that increases its utility or opens up new markets.

It may mean that an idea is radically different, but equally it may mean that an idea addresses an everyday process in a revolutionary or original way. You could ask: what is the point of difference between my idea and that of the enterprise next door?

The City of Melbourne is looking for enterprises that indicate, through their innovation, that they can add to the city’s economic prosperity and diversity. In assessing whether your proposal is innovative, you might consider the following questions. Does your businesses or organisation:

• Satisfy a compelling and potentially global need? • Target a well-defined niche market?

• Demonstrate a significant competitive advantage over the medium term?

• Achieve high gross margins? • Scale up to a significant degree?

• Articulate the problem it is trying to solve and how it will do it?

Small business grants have been developed to provide supplementary

financial support to small businesses. They form part of the City of

Melbourne’s Business Development Fund, which directly supports

economic and business development in the City of Melbourne municipality.

Innovation in Business

Innovation in business is important because it is the primary driver of

competitiveness for firms differentiating their products and services from those of … competitors … Continuous innovation, or the repeated successful introduction of novel products and services, is the only sustainable strategy for … survival and progress in rapidly changing and turbulent technological and market circumstances.

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GRANT

ELIGIBILITY

Who is eligible to apply?

Small businesses that will make a measurable contribution to the small business grant objectives are eligible to apply.

An applicant must:

• have a registered Australian Business Number (ABN) • be located or committed to locate within the

City of Melbourne municipality • employ 20 people or less

• have an appropriate legal structure, such as a sole trader, an Australian registered company, business cooperative or partnership and have documentary evidence of an appropriate legal structure.

Business support groups are eligible to apply for a grant under the business support services category.

For micro business start-up and expansion grants,

the following criteria must be met: that the business is for-profit with one or two owner/operators, at least one of whom is;

• a former refugee • homeless

• Aboriginal and Torres Strait Islander • long-term unemployed or

• has a disability.

Who is not eligible to apply?

Franchisees, subsidiaries of larger companies, unincorporated associations and government departments or agencies are not eligible to apply. Branches of foreign companies that are not registered as an Australian company are also not eligible to apply. Individuals/organisations providing trade facilitation services to businesses are not eligible to apply under the export entry grants category.

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GRANT

APPLICATION

Applications for small business grants will be sought twice a year. The two funding rounds are August (first round) and March (second round) in any financial year. No applications will be accepted or assessed outside those rounds.

A series of individual grant category lunchtime briefing sessions will be held during the application period to allow prospective applicants to seek more information about the program and seek advice. To make a booking or for more information visit melbourne.vic.gov.au/grantsandsponsorships These sessions are not compulsory but highly recommended.

How do I apply?

To apply, simply follow these steps.

1. Call the City of Melbourne on 9658 9658 or

visit melbourne.vic.gov.au/grantsandsponsorships

for small business grants information.

2. Attend a small business grants general

information session.

3. Book and attend a category-specific lunchtime

briefing session to discuss your proposed project with the City of Melbourne.

4. Complete the appropriate online application form,

financial templates and schedule.

5. Attach all relevant supporting documents.

Micro business grant applications

Applicants can apply by following these steps;

1. Visit melbourne.vic.gov.au/grantsandsponsorships 2. Call the City of Melbourne on 9658 9658 to discuss

your business idea and application.

Submit your application

Submit your application online to the City of Melbourne. Your application must be received by 5pm on the nominated closing date for each funding round.

You will not be able to access or submit your application online after this date.

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claimable items

What can I claim?

The individual types of items that can be claimed under each grant category are outlined below. Please note only expenditure items that have not yet been incurred prior to application lodgement will be eligible in any of the grant categories.

Start-up and business expansion

The start-up and business expansion grants support the following categories of expenditure directly related to establishing a business or as part of a business expansion process.

Capital improvement

• The costs associated with the fit-out of business premises such as partitioning, desks, chairs, cabling or in the case of a retail business fit out, shelving.

Website development

• The costs associated with the development or enhancement of a business website.

IT equipment

• The costs associated with purchasing IT hardware such as computers, printers, servers for the operation of the new business or as part of the business expansion activity.

Specialised equipment and software

• The costs associated with purchasing specialised equipment and software other than that which comes as part of a computer hardware purchase that is directly related to the operation of the new business or as part of the business expansion activity.

Other

• Expenditure items not listed above if it can be demonstrated there is a significant need for them to aide the start-up or expansion of a specialised business.

General operational expenses including rent, stock purchase, utilities, training, marketing, legal costs, networking and staff remuneration will not be

considered. Applicants and their staff cannot undertake work and activity associated with the above expenditure categories and pay themselves from any grant that may be awarded under this scheme.

Export entry

The export entry grants support the following categories of export-related activities:

Overseas representation and marketing consultants

• The cost associated with engaging an overseas representative acting on behalf of the business to market or promote the product/service. • The cost associated with engaging an overseas

representative or consultant for business matching activities.

Market research

• The cost of engaging a consultant to undertake targeted export market research.

Marketing visits

• The cost of economy airfares, on-ground travel and accommodation.

Free samples

• The cost of providing free samples to non-residents.

Communications

• The cost of communications directly associated with the export project.

Promotional literature

• The production cost of internationally-branded promotional materials including brochures, video/ CD/DVD presentations, advertising and translation.

Trade fairs and exhibitions

• The cost of participating in international trade fairs, seminars or exhibitions.

Outbound missions

• The cost of participating in a City of Melbourne business/trade mission.

Export product development and protection

• The cost of modifying a product/service or its packaging in order to tailor it to the export requirements of an overseas market. • The cost associated with product/service

protection including intellectual property rights, patents and trademarks.

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Business support services

Business support services grants will only assist with expenditure related to the following activities:

Project initiative

• The costs associated with the delivery of a new and innovative project,

Training and development initiatives

• The costs associated with the delivery of training and development-related initiatives designed to improve the performance of small businesses in the City of Melbourne municipality,

Office establishment

• The cost associated with the set-up of a new office. Only applicable to a national association or Victorian/Melbourne chapter of a national association.

The business support services grants will not support expenditure items relating to general operational expenses and marketing or networking activities.

Micro business

The micro business start-up and business expansion grants support the following types of expenditure directly related to establishing a business or as part of a business expansion process:

Capital improvement

• the costs associated with the fit-out of business premises.

Website development

• the costs associated with the development or enhancement of a business website.

IT equipment

• the costs associated with purchasing IT equipment for the operation of the new business or as part of the business expansion activity.

Specialised equipment and software

• the costs associated with purchasing specialised equipment and software that is directly related to the operation of the new business or as part of the business expansion activity.

Other

• expenditure items which are not listed above but can be demonstrated as crucial for the start-up or expansion of a specialised business.

General operational expenses including rent, utilities, training, marketing, networking and staff remuneration will not be considered.

Training expenses

The City of Melbourne may make a pre-agreed contribution towards training expenses including as follows:

Start-up (micro businesses)

Training costs associated with establishing the micro business such as courses and programs in: • establishing a small business

• bookkeeping

• business and financial planning, sales/marketing planning and implementations

• managing cash flow. Expansion (micro businesses)

Training costs associated with expanding the micro business such as courses and programs in: • managing cash flow

• business and financial planning

• sales/marketing planning and implementation

What is not included?

General operational expenses, including rent, utilities, wages, marketing, sales development, networking or personal expenses.

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Assessment process

What is the assessment process?

Each application will be assessed against the small business grants objectives and assessment criteria. An assessment report is prepared for consideration by an external independent review panel (IRP). The IRP is made up of experienced small business operators and advisors. The IRP will consider the conforming applications on a competitive and merit basis and make recommendations for approval. On the basis of these recommendations, the Melbourne City Council will determine the final grant funding.

Lobbying

Canvassing or lobbying councillors, employees of the City of Melbourne or assessment panel members in relation to any grant or sponsorship application is prohibited during the application process. No further consideration will be given to an application submitted by an applicant who canvasses or lobbies a councillor, City of Melbourne employee or assessment panel member in relation to their application.

Assessment criteria

Applications considered to offer the most valuable contribution to the achievement of the program’s objectives and consistent with the City of Melbourne’s goals will be offered grants.

The assessment criteria for individual grant categories is outlined below.

Start-up

• Able to clearly demonstrate via a market analysis and by a subsequent market strategy, a strong point of difference, not duplicating existing products/services available in the city, and can demonstrate unique, hard to copy, or extensive intellectual capital or property.

• Able to demonstrate ‘business readiness’ that the product/service is well-researched, planned and financially viable and will proceed without a grant. • Able to demonstrate financial viability and

sound management.

• Able to deliver measurable economic benefits to the City of Melbourne in areas such as job creation, investment, revenue generation and capability-building.

• Able to demonstrate sustainable business practices. The City of Melbourne encourages applications

in key target industry sectors such as advanced manufacturing, biotechnology, creative

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Business expansion

• Able to clearly demonstrate via a market analysis and subsequent market strategy a strong point of difference, not duplicating existing products/ services available in the city, and can demonstrate unique, hard to copy, or extensive intellectual capital or property.

• Able to demonstrate the proposed business expansion activity is a new product/service, not just organic growth of the existing suite of products or services. • Able to demonstrate ‘business readiness’ that the

proposed new product/service is well-researched, planned, financially viable and ready-to launch irrespective of receiving financial support from the City of Melbourne.

• Able to demonstrate a level of existing business success, supported by financial documentation. • Able to demonstrate how the new product/service

is unique, hard to copy or has extensive intellectual capital or property.

• Able to deliver measurable economic benefits to the City of Melbourne in areas such as job creation, investment, revenue generation and capability-building.

• Able to demonstrate sustainable business practices.

Export entry

• Able to demonstrate ‘export readiness’ in that the proposed export product/service is well-researched, planned and financially viable. • Able to demonstrate the potential for global

demand for the product or service. • Able to match any approved funding on a

dollar-for-dollar basis.

• Able to demonstrate that goods/services for export are manufactured or produced in Australia. • Able to demonstrate direct export outcomes. • Able to demonstrate sustainable business practices.

• For current exporters: able to demonstrate

a level of existing business success, supported by financial documentation.

Preferably, the business will be in one of the City of Melbourne’s key target industry sectors (see page 13) and/or priority export markets (see below).

Business support services

• Able to demonstrate that the proposed initiative can deliver significant tangible outcomes to its members and small businesses located within the City of Melbourne.

• Able to demonstrate that the proposed initiative is well-researched, planned and financially viable. • Able to deliver measurable economic benefits to

the City of Melbourne.

• Able to demonstrate sustainable business practices. Preferably, the organisation will be in one of the City of Melbourne’s key target industry sectors (see page 13).

Micro business

• Able to demonstrate sustainable, supported employment or self-employment opportunities’ within the City of Melbourne municipality for people who are in one or more of these target groups:

• former refugees and newcomers • arriving under the humanitarian

immigration program • homeless

• Aboriginal and Torres Strait Islander • long-term unemployed

• persons with a disability • persons with a mental illness.

• Able to demonstrate why and how the proposed business concept or planned expansion activity will be successful

• Able to demonstrate long term business and financial viability

• Able to commence the proposed business activity within 12 months following the approval of grant • Able to deliver measurable economic benefits to

the City of Melbourne

• For micro business expansion: able to

demonstrate a level of existing business success, supported by financial documentation

Priority Export markets

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TERMS AND conditions

Grant recipients will be required to enter into a 12 month agreement with the City of Melbourne and meet agreed performance measures in relation to the anticipated outcomes, as identified in the application. Grant recipients are also required to have the appropriate business insurances and be located within the City of Melbourne municipality during the delivery of the proposed project.

All recipients are required to submit two reports during the period of the agreement (at six months and 12 months), detailing progress against the agreed measures. Recipients will also be required to recognise the City of Melbourne’s support, in an agreed manner and to participate in any public promotions organised by the City of Melbourne to promote the small business grants.

The City of Melbourne may also contact you to gain feedback about the progress of your business over the longer term. A City of Melbourne officer is likely to contact you up to five years after you receive the grant, to gain an understanding of how the grant made a difference to your enterprise and its development. This may include questions about how your business has grown including major milestones and achievements. The responses will be aggregated with those of other recipients to guide future

refinement of the grants program.

Start-up and business expansion grants recipients are also required to use the Small Business Mentoring Service to assist the success of the proposed project. The City of Melbourne will reimburse part of the cost of the service.

On average, applicants will be notified of the assessment outcome three months from the closing date of the application.

All decisions are final. There will be no review or appeal process. However, unsuccessful applicants are eligible to re-apply.

If successful, when will I

receive payment?

Start-up, business expansion, business support services and micro business grants

Successful recipients will receive an initial payment of 50 per cent of the grant after both parties have signed the agreement.

The balance of the grant payment will be made at the conclusion of the 12 month term of the agreement and will be subject to the receipt of a 12 month report detailing satisfactory completion of agreed performance measures as well as detailed invoices and proof of payment for completed items. Payments will only be made for items invoiced after the application closing date. For example, if the closing date is 15 March, successful applicants are eligible to claim for items invoiced from 16 March onwards.

Export entry grants

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Ethical

Considerations

This Ethical Charter is based on the Australian Ethical Charter (1989), Australian Ethical Investment Ltd from austethical.com.au

Preference will be given to applications that demonstrate sustainable business practices and business practices in line with the ethical charter.

Ethical charter

The City of Melbourne seeks to support small businesses that will contribute to one or more of the following:

1. production of high quality and properly presented

products and services

2. development of locally-based ventures

3. development of appropriate technological systems 4. improvement of wasteful or polluting practices 5. development of sustainable land use and

food production

6. preservation of endangered ecosystems 7. human happiness, dignity and education 8. the dignity and wellbeing of animals.

The City of Melbourne will avoid supporting small businesses that unnecessarily:

1. pollute land, air or water

2. destroy or waste non-recurring resources 3. extract, create, produce, manufacture, or market

materials, products, goods or services that have a harmful effect on humans, non-human animals or the environment

4. market, promote or advertise, products or services

in a misleading or deceitful manner

5. create markets by the promotion or advertising

of unwanted products or services

6. acquire land or commodities primarily for the

purpose of speculative gain

7. create, encourage or perpetuate militarism or

engage in the manufacture of armaments

8. entice people into financial over-commitment 9. exploit people through the payment of low wages

or the provision of poor working conditions

10. discriminate by way of race, religion or sex in

employment, marketing or advertising practices

11. contribute to the reduction of human

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SMALL BUSINESS GRANTS PROGRAM GUIDELINES