With billions of dollars of government grants on offer, it can be confusing where and how to start. CCIWA Member RSM’s Edward Day, Senior Manager Tax Advisory, gives expert tips on how to improve your chances of success.
The Australian Government allocates billions of dollars to grant funding each year, through thousands of programs and initiatives. These government funds are an attractive lure for any business; capital that doesn’t dilute your equity or require repayment.
However, in a dynamic grants landscape, where programs expire and emerge daily, it can be challenging for businesses to make the most of these opportunities.
Here are some considerations to help position yourself for success.
Plan ahead to align project timeframe with grant program
Grants must be used to fund future expenditure rather than reclaim monies already committed or spent. Grants are either made available for a defined period of the year in rounds or open throughout the year. Whatever the model adopted, grants are not a quick process as the timeframes for submitting applications, assessing them and approving funding decisions are lengthy.
You should plan on at least three to six months from the point of lodging your application before receiving a decision. Sometimes the grant process will take even longer and your project can only start after you have been awarded funding. So, making sure that your project’s timeframes fit with those of the grant program is essential.
Align with government objectives
Government uses grants to stimulate growth and expansion in the economy as a whole or at a sub-sector level rather than at the individual business level. Government is looking for projects with broader economic benefits, which bring new technologies or capabilities to an industry or a region or create new employment opportunities.
Applicants need to demonstrate how their project meets these objectives and the need for government intervention to get the project across the line.
Do your homework – check grant eligibility criteria and merit strength
To be successful, you need to consider how well your project fits with the grant program’s objectives and assessment criteria. This first test is eligibility. These are the basic criteria that you must meet to even be considered. If you don’t meet these, then your application will not progress any further. Grant administrators often run webinars, provide frequently asked questions or provide contact details to discuss queries. These are vital resources for getting ahead.
Once you’re confident of a good fit with the eligibility criteria, your focus should turn to the merit criteria that your application will be scored against. Often, they are assigned a weighting, which tells you where the funder places the most importance and where you should be focusing your efforts the most.
Make your project standout
Grant programs are highly competitive with many more applications than can be funded. The role of the assessment panel is, therefore, to say ‘no’ more often than ‘yes’. Crafting clear and compelling responses to each of the criteria will give them fewer grounds to mark your submission down.
Any claims you make in your submission should be backed up with evidence such as citing independent research or by attaching supplementary documents such as quotes to support your costs or a business plan to add credibility.
The use of attachments can be a powerful tool but it is important to understand the expectations of the program. In some instances, supplementary information that is not explicitly requested is not permitted. If that is the case, supplementary documents will most likely not be read.
Specificity over accuracy
Avoid vague language such as ‘significant benefits’ or ‘many positive attributes’. Instead, use facts or data to substantiate your claims or put them in a more positive context. In some instances, accuracy is essential. In others, a reasoned argument based on clear assumptions can be sufficient.
In time-critical grant processes, investing extra hours to achieve a marginal increase in accuracy could be time better spent enhancing other parts of your submission that are more material to your success.
Check the finances
Most grants require some form of matched funding. Often the grant will only cover up to 50% of project costs with the balance coming from your own funds, although some programs are more generous.
Grants also operate on reimbursement basis meaning recipients need the funds to cover project expenditure upfront and reclaim eligible amounts against the grant funds.
Some grant programs provide a portion of the funding upfront with the rest split across multiple payments based on achieving certain milestones. It is important to understand your funding obligations and how the grant funds will be paid.
Need help with your grant application?
RSM’s Government Grants team is here to help. We have a detailed knowledge of State and Federal funding programs and work closely with you to identify opportunities that are right for your business and support you to prepare compelling submissions.
For further information, contact Edward Day at RSM on 08 9261 9161.
CCIWA Members also have access to Grant Finder where you can search for more than 875 grants worth over $63 billion.
To be part of WA’s peak business organisation, get in touch via 1300 422 492 or [email protected].
