If you have received a SA Export Accelerator grant previously, will this impact on the amount you can apply for?
No, the funding caps have been reset. This means up to $30,000 is available under the Export Accelerator steam for all businesses from 1 July 2021 and this amount will need to be exhausted before businesses can apply for the New Market Entry stream.
What does ‘matched funding dollar for dollar’ mean?
When you incur an expense for an approved activity, the grant will cover 50% of the cost while you will be required to cover the remaining 50% using your own funds. For example, if the cost of producing a banner is $120, the grant would cover $60 and you will be required to match this with your own funds to cover the full cost.
What is defined as a new market?
A new market is one that your business has not exported to or engaged a distributor/agent for that market over the preceding five years. If a significant point of difference can be demonstrated (e.g. different province in China) in your application, it will be considered by the assessment panel.
What are the Growth State priority sectors?
The Growth State priority sectors include:
- Creative industries
- Defence industries
- Energy and mining
- Food, wine and agribusiness
- Health and medical industries
- International education
- Space industries
What is meant by significant business operations in South Australia?
For businesses not registered in South Australia, the applicant would need to put forward a business case to demonstrate the jobs benefit to South Australia which outlines:
- The applicant’s percentage of staff based in South Australia
- The applicant’s percentage of revenue generated in South Australia
- The impact of proposed funded activities on South Australian jobs and/or South Australian supply chains.
The export product(s) which forms the applicant’s application will need to be made in South Australia.
Applications are assessed on a case-by-case basis at the discretion of the Department for Trade and Investment.
How is ‘produced in South Australia’ determined?
Goods are considered produced in South Australia if the manufacturing process:
- Results in the manufacturing of a new product
- Substantially transforms the nature of the materials or components
- Represents an important stage of manufacture of a product created from an imported component.
In addition, goods are considered produced in South Australia, where the process or operation is:
- Not designed to circumvent the correct origin of the product
- Not simply grading, packing or sorting of imported components.
What financial statements do you need to provide?
Your financial statements must be prepared in accordance with Australian Accounting Standards and inclusive of (but not limited to) a Balance Sheet and Profit and Loss Statement. You will need to provide your financial statements from the past two years.
What is a budget or cashflow forecast?
A budget or cashflow forecast is an estimate of the amount of money you expect to flow in and out of your business. You will be asked to provide a budget or cashflow forecast for the next 12 months. This means if you are submitting your application before the assessment date 1 October 2021, your budget/cashflow should reflect 12 months from October 2021 to September 2022.
Can you apply under the Consortium stream while applying under the Export Accelerator or New Market Entry stream?
Yes, applicants can apply under the Consortium and Export Accelerator or New Market Entry stream as long as the proposed activities are not of the same nature.
Can the Consortium lead claim a project management fee?
Yes, the Consortium lead can claim 10% of the grant amount or $10,000, whichever is the lowest, as part of the project management fee if they are a consortium participant. If an industry association is the coordinator of the consortium, subject to the consortium’s approval, they may receive by a way of project management fee, 5% of the grant amount, or $5,000, whichever is lower.
What evidence is sufficient to meet the matched funding criteria when accepting a grant offer?
Evidence of matched funding can come in the form of a:
- Recent bank statement that includes the business name
- Letter from your accountant confirming access to sufficient cashflow
- Letter from an investor confirming funds.
What assessment criteria will the Assessment Panel apply to applications?
All applications will be assessed on a competitive basis by an independent assessment panel against the program eligibility criteria and the following merit criteria:
- Export readiness of their product/service* (*NA for Consortium stream) - Is the product/service export ready for the target market(s)? - Based on USP.
- Awareness of export gaps and opportunities - Are the export gaps and opportunities in the target market(s) clearly understood?
- Understanding of critical success factors - Have the critical success factors in expanding in existing and/or new markets been clearly articulated?
- Identification of appropriate eligible activities that achieve value for money - Have appropriate pathways been identified (as the proposed activities under this grant) that aligned with the critical success factors to overcome export gaps and/or support opportunities? Do the costs for proposed activities achieve value for money?
- Program reach impact - Is the applicant new to SAEA? Is the applicant expanding into new markets rather than existing markets?
- Export growth potential based on the baseline export performance - How much difference would the proposed grant activities make based on current export performance and proposed export goal in the next 12 months?
Further to the assessment criteria, the Department for Trade and Investment will undertake a financial due diligence assessment for the purpose of determining the financial risk of applicants prior to awarding grants.
What is the budget allocation for the program in 2021-22?
Are funds going to be reserved for the February 2022 assessment round?
A cap or budget has not been set for the October 2021 or February 2022 assessment rounds. Quality applications from the October 2021 assessment round will be funded, with remaining funds available for the February 2022 assessment round.
When does the minimum $75,000 turnover need to be achieved?
A business needs to have a turnover of at least $75,000 for the most recent financial year to be eligible.
Are there any limitations with the inter-relationship of the three companies applying under the Consortium stream?
If the three companies are separate entities with their own ABN, there are no restrictions.
Is representation in another market covered?
Funding can be used to contract third parties overseas to help increase your export sales. Staff wages and commission-based payments are not eligible for funding.
If we spend $30,000, can we claim $15,000 through the SA Export Accelerator program and then claim the remaining $15,000 through EMDG?
No, one of the eligibility requirements for the program is that you have not received or sought funding from another source (such as local, state or the Australian Government) to support proposed activity. EMDG
have a similar requirement.
What if your business has not been generating sales revenue for a minimum of 24 months in South Australia?