Government Business Funding Update - January 2011
The New Zealand Government currently has funding available to help New Zealand businesses grow and innovate. The key funding programmes are:
- Capital Raising Advice and Assistance
- Developing New High Technology Products, Services and Processes
- Energy Efficiency, Energy Audits
- International Market Development for High Growth Companies
- Primary Sector Innovation
- Research and Development
- Sustainable Farming and Forestry; Climate Change
- Technology Experts and Advisors
To find out more, or if you need help applying, please contact us at 0800 BIZ RODNEY.
Sustainable Farming Funding
The purpose of the Sustainable Farming Fund is to support projects that will contribute to improving the financial and environmental performance of the land-based productive sectors. The Fund aims to help solve problems and take up opportunities to overcome barriers to economic, social and environmental viability. It will do this by bringing together "communities of interest". These are groups of people drawn together by a shared problem and/or opportunity in the sustainable use of resources. The funding round is now open for applications.
Deadline: 14th February 2011 is the closing date for under $25,000 applications.
Technology Transfer Vouchers
The May 2010 Budget announced a new funding scheme: Technology Transfer Vouchers which will provide 50% funding towards business R&D projects to enable firms to access research services and expertise from accredited research organizations.
How will they Work?
Technology Transfer Vouchers will be targeted at firms with modest in-house R&D capability. The Technology Transfer Vouchers will have a minimum value of $100,000 and enable firms to work with public research organisations including Universities and Crown Research Institutes.
The Government is investing $5 million in 2010/11. For the first two years the voucher will be run as a pilot where accredited research organisations will participate. Detail around accreditation is being developed.
Technology Development Grant Announced July 2010
A new Technology Development Grant, aimed at medium to large research intensive firms, was announced in the May 2010 budget. The launch of the grant is planned for October 2010. There will only be one investment round per year.
To qualify, firms must have R&D intensity (the ratio of R&D expenditure to revenue) of 5% or more, over a period of three years, and must have revenues of at least $3 million a year. They must also have R&D programmes that are likely to generate significant benefits for the wider economy via high-value products and services. Eligible firms will also need to demonstrate strong R&D management capabilities. 'Eligible R&D' and 'eligible expenditure' will be defined by the NZ International Accounting Standard (IAS 38). Eligible businesses will need to provide financial statements to demonstrate they meet the requirements for R&D intensity and revenue.
Key points are:
- The grant will be equal to 20% of eligible expenditure of an R&D programme, up to $2.4 million a year.
- The grant provides funding for three years.
- Successful applicants will be able to manage the ways in which the grants are used, provided they meet certain conditions.
For more information please contact the Rodney Economic Development Trust on
(09) 427 9475.
Grants for Research and Development - Under $30,000
Technology New Zealand has a $30,000 grant available to help your business innovate. The key features of the grant are:
- A maximum of 50:50 funding is available up to $30,000 including GST.
- 30% of the value of the grant can be allocated for internal project costs.
- 70% of the value of the grant can be allocated to external experts or R&D providers.
- The project must be a technical stretch for your company.
- The project must build technical capability in your company.
- You are able to demonstrate market demand for the product or service arising from the research.
- You are able to provide financial records to demonstrate you can fund your share of the project costs.
The 'Accelerate R and D Investment' program helps companies exploit emerging areas of science and technology. Applicants are expected to have a sound financial history with good growth prospects.
For help preparing business grant applications and proposals call us on (09) 4279475.
ASB Bank $1 Billion Loan Fund
ASB’s special $1 billion loan fund for New Zealand businesses is still available. The loan allows businesses to borrow at below market rates if they can show that their new initiative will create employment or prevent people losing their jobs.
The fund is specifically aimed at businesses looking to invest in a new project, process or expansion initiative that facilitates an increase or retention of jobs, so to be eligible, borrowers will need to meet ASB's normal business lending criteria plus demonstrate the employment benefits of their proposal.
A range of finance options are available:
- Fixed interest rate for 2 years
- Floating interest rate for up to 2 years*
- Flexible Finance Facility for up to 2 years*
- Foreign currency facility options
Good news for exporters:
We've set aside $250m of the $1bn Job Creation Loan fund specifically for businesses that export products. It's one way we're helping provide relief from a high New Zealand Dollar and to support exporters during these difficult times.
Find out more:
To find out more about Job Creation Loans for your business:
International Growth Fund
The new International Growth Fund is part of a suite of tailored programmes and services that New Zealand Trade and Enterprise (NZTE) develops for the businesses it works most closely with. The fund may be able to support activities that help businesses to improve their:
- Knowledge and development of new markets
- Business and management capability
- Ability to innovate and manage the commercialisation of research and development
- Ability to access finance to fund international opportunities.
Investments from the fund will be made only if the funded activity is additional to business-as-usual activities and has the potential to deliver benefits New Zealand's wider economy as well as the business.