In a tight economic market, any lending advantage can assist in solvency and business growth. As part of the Baird Government’s recent election promise to create new jobs, there are two Jobs for NSW pilot programs available to SME, but with a very limited window to apply.
Accelerating Growth Loans
The first program is Accelerating Growth Loan to directly finance small businesses with high growth potential. This program is available to SMEs with turnover of between $500,000 to $3,000,000 who can show:
- They cannot secure competitive funding rates from comercial lenders;
- Have at least five employed staff;
- Have a three year growth history of 20% average growth and plans to continue this rate of growth; and
- Are a non-tax exempt company that is registered for GST (or undertake to become incorporated if the loan is granted).
50% of the loan amount must be spent on hiring of new staff in NSW, but the balance can be used for other business growth costs.
The loans will be for between $100,000 to $300,000 and for a term of between six months to three years but will be available for one month only from 20 September to 19 October so applicants need to take their marks and get set quickly.
Gazelle Loan Guarantees
The second pilot program is for businesses with a turnover of between $3,000,000 and $150,000,000. The government will guarantee up to 50% of loans granted to approved applicants
The loan can be up to $10,000,000 and be for a period of between 2 to 4 years and with the guarantee should be on substantially better terms than a commercial rate loan. The funds can be used to grow operations via employing staff, working capital, commercialisation of research and development, expansion of production and exporting.
The government is targeting a broad range of businesses including exporters to Asia, technology and digital innovation, financial and professional services, those involved in infrastructure and smart cities or environmental technologies as well as creative industries and larger companies looking to establish regional headquarters in NSW.
Grants for start-ups
Start-ups businesses who don’t qualify for the above can still take advantage of a Minimum Viable Product or Building Partnerships Grant from the NSW grant programs if they are located in an incubator or accelerator.