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SA Economic Recovery Fund (ERF) – Round 1
- Applications are open until: 15 December 2023
- Stream 1 – Manufacturing Innovation
- Grant funding ranges from $150,000 to a maximum of $2 million, while grant co-contribution entails a minimum of 50%, with the SA Government matching up to 50% of the total project expenses.
- Loans start at a minimum of $2 million and can go up to a maximum of $5 million. Loan limits are set at a maximum of 30% of the overall project cost.
- Stream 2 – Regional Tourism Infrastructure Development
- Grant funding is available, ranging from a minimum of $150,000 to a maximum of $1 million. Grant co-contribution requirements dictate a minimum of 70%, with the SA Government matching up to 30% of the total project expenses.
- Loans are accessible, starting at a minimum of $1 million and going up to a maximum of $5 million, with loan limits set at a maximum of 30% of the overall project cost.
As part of the State Budgets for 2022–23 and 2023–24, the government has allocated $122 million to establish an Economic Recovery Fund (ERF). This fund aims to stimulate growth in key sectors, promote the creation of well-paying jobs, enhance productivity, boost exports, and drive the adoption of innovative, value-added technology in South Australia.
Round 1 is dedicated to empowering manufacturing and regional tourism businesses to expedite their growth, tap into their potential, and create new opportunities supporting South Australia's economic expansion. A substantial funding pool of $20 million will be accessible through either grants or low-interest loans, channelled into two distinct streams: Manufacturing Innovation and Regional Tourism Infrastructure Development.
Key Requirements
Applications must provide the following information:
- name of the applicant
- contact details of the authorized individual who will serve as the primary contact for the application, and who can be contacted for additional information or clarification if needed
- financial reports from the two most recent years, showing financial performance over three full years. These reports should include a Profit and Loss Statement and a Statement of Financial Position, professionally prepared by a qualified accountant
- a business case for the proposed project, including:
- detailed information about the project, covering its nature, location, type, and scale.
- projections for profit and loss, cash flow, and balance sheets for each construction/development and operational phase spanning at least three years. This should also include any other grants and contributions to the project, along with supporting documentation (quotes from qualified contractors or consultants are encouraged where available)
- key assumptions underlying cash flow projections
- information about project financing, including details regarding borrowing capacity or internal financing for the project, as well as other sources of financing, including government grants or private contributions
- details of all State and Commonwealth grants and loans received in the past two years, as well as any pending applications for grants and loans
- a project plan and delivery timetable, including allowances for necessary approvals (if applicable). The timeline should demonstrate that the project will commence by the proposed commencement date
- a clear identification of project benefits, in alignment with the objectives of the Economic Recovery Fund for Round 1 – Manufacturing Innovation and Regional Tourism Infrastructure Development
- estimates of direct employment generated or supported, specifying the type, number, and location of ongoing direct jobs. This refers to the number of full-time employees directly employed by the applicant as a result of the project, excluding contractors. It should be calculated as: ordinary hours worked (excluding overtime) over 12 months divided by 1950 (equivalent to 37.5 hours per week for 52 weeks)
- details of any labour force skill enhancements aimed at improving productivity, capability, or innovation
- a commitment to use certified Australian steel products
- any additional project preparation documentation, such as cost-benefit analyses, project scoping, option studies, design work, and other relevant materials that demonstrate compliance with eligibility criteria.
What is eligible for funding?
Stream 1 – Manufacturing Innovation
In addition to demonstrating compliance with the requirements and key criteria outlined in the overarching ERF Guidelines, applicants in this stream must prove that:
- proficiency in contemporary advanced manufacturing practices, processes, and business models, or the potential to become an advanced manufacturer, in relation to the proposed project
- competitive neutrality – meaning the project will not negatively impact the economic well-being of another South Australian-based advanced manufacturer
- a degree of distinctiveness and innovation, such as being a novel addition to South Australia.
Projects that involve the enhancement or expansion of existing facilities, machinery, technology, or procedures, with the introduction of new products, services, and market approaches, are more likely to succeed.
Stream 2 – Regional Tourism Infrastructure Development
In addition to demonstrating that they have met the requirements, important criteria in the overarching guidelines for ERF, applicants in this stream must demonstrate:
- at least one of the 11 designated regions will host the projects, which include tourism regions
- projects will deliver quantifiable economic benefits in rural South Australia, contributing to increased domestic and international tourism and promoting additional economic activity
- projects align with the South Australian Visitor Economy Sector Plan 2030 and the South Australian Regional Visitor Strategy 2025
- the initiative addresses a regional need and enhances the tourism experience in the region
- efforts will be made to secure funding from interstate and/or international visitors to support the initiative.
Examples of eligible projects include:
- construction of new accommodations or the expansion of existing ones
- infrastructure enhancements to facilitate greater visitor engagement, such as cellar doors
- infrastructure necessary for the development of new tour offerings built upon existing products and service experiences.
The 11 recognised tourism regions by the State Government and SA Tourism Commission include:
- Adelaide Hills
- Barossa
- Clare Valley
- Eyre Peninsula
- Fleurieu Peninsula
- Flinders Ranges and Outback
- Kangaroo Island
- Limestone Coast
- Murray River, Lakes, and Coorong
- Riverland
- Yorke Peninsula
Please note that projects in the metropolitan area of Adelaide and its surrounds do not qualify for funding under the Stream for Regional Tourism Infrastructure Development.
What companies are eligible for funding?
To be eligible, an applicant must:
- be based in South Australia
- have a valid Australian Business Number (ABN)
- not be exempt from paying taxes
- be registered for GST (Goods and Services Tax)
- demonstrate that their project will have a significant economic impact.
Is this grant competitive or entitlement based?
Competitive. Your application will be assessed among other applications by a judging panel.
How can I increase my chances of winning this grant?
By engaging an accredited government grants consultant, such as Avant Group.
Competitive grants often require significant business case development and project analysis to support the application, this may include detailed presentations supporting the project’s merit, projected sales, cost-benefit analysis and more.
As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.
Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project
- Industry analysis presentation
- Competitor Analysis Presentation
- Marketing and Sales Analysis Presentation
- 3-5 year Cashflow Forecast
- 3-5 year Balance Sheet Forecast
- Cost-Benefit Analysis of Grant Funding
- End-to-end grant application including information collating, analysis and application writing
- CAPEX (Capital Expenditure) cost-benefit analysis
- Stakeholder relations and Risk Mitigation Plans
- Any other relevant forecasting that will support your application
How can I get help with my application? Or know if I’m likely to win funding?
Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.