SME Enterprise Investment Development Program

About

The State Government has established the Small and Medium Enterprise Investment Development Program (SMEIDP) to assist local manufacturers to improve their competiveness.
Administered by Innovate SA on behalf of the Department of Trade and Economic Development (DTED), the SMEIDP is a competitive, merit-based government grant that supports the generation and/or acceleration of new capital investment in South Australia to assist innovation, diversification and competitiveness of growth enterprises.

Objectives

The objective of the SMEIDP government grant is to support small to medium sized manufacturing businesses to introduce new technology, new products/services and/or enter new markets. The SMEIDP will directly contribute to the following South
Australia Strategic Plan targets:

  • T1.5 Business Investment
  • T1.6 Labour Productivity
  • T1.10 Jobs
  • T1.14 Total Exports

The SMEIDP is available to businesses with a turnover of less than $10 million per annum.

Level of Grant Support

A minimum government grant of $100,000 and up to a maximum of $200,000 (plus GST) is available for claims against eligible expenditure items, on a 1:2 basis, and in accordance with agreed milestones outlined in the SMEIDP Funding Agreement.

Application Process

SMEIDP Applications will be invited through funding rounds which will be advertised by Innovate SA and DTED. Innovate SA may provide advice during the application period to assist those intending to apply for a grant under the program. It is recommended that this assistance is utilised to ensure that there is clarity with regard to the eligibility requirements and evaluation criteria.
SMEIDP Applicants must complete the application form which is available online at www.innovatesa.com.au and submit to Innovate SA.

Eligibility

SMEIDP Projects must involve capital expenditure of a minimum of $300,000. SMEIDP Projects with a bias towards innovation and the introduction of new technology will be given priority.
The applicant must:

  • be a small to medium sized enterprise (SME) with a turnover of less than $10 million per annum;
  • be directly engaged in manufacturing;
  • have an Australian Business Number (ABN);
  • be a legal entity with whom the South Australian Government can enter into a legally binding Funding Agreement;
  • have a demonstrated ability to fund the remaining share of the project costs; and
  • be willing to formalise the arrangement in a Funding Agreement with nominated milestones.

Ineligible Business Criteria:

  • SME with turnover exceeding $10 million;
  • local, state or commonwealth government entities;
  • businesses not directly engaged in manufacturing a product for sale;
  • insolvent;
  • has received or is receiving Commonwealth or State Government funding for the same project.

Eligible Expenditure

SMEIDP Program funding supports direct costs relating to:

  • purchase of capital items directly related to the production of a new product; and/or
  • purchase of capital items directly related toimproving the efficiency and/or capacity of production; and/or
  • the cost of training directly related to the new capital item; and/or
  • professional services critical to the capital item (eg. engineering, technical, design and development).

Ineligible Expenditure

SMEIDP Program funding will not be provided for:

  • operational expenditure, including but not limited to; leasing (operating or finance), marketing, wages, travel, etc
  • expenditure incurred by a related entity; and
  • costs associated with the preparation of the application.

Selection Criteria

The SMEIDP selection criteria are:

  • Management Capability – The management team has the prerequisite skills, experience and commitment to successfully implement the project and maximise the commercial potential.
  • Commercial Potential – Applicants need to have a business plan for the expansion. For a product/service diversification project, the market opportunity for the new product or service has been outlined or the actions to perform required market research are clearly understood.
  • Financial Viability – A feasibility assessment has been performed to demonstrate the financial viability of the project.
  • Innovation and Technology –  The extent to which the project demonstrates the introduction of new innovations or technology, including whether the new innovations or technology is new to the company, new to South Australia or new to Australia.
  • Funding & Economic Impact – Applicants need to demonstrate they can fund their portion of the project costs (eg. through cash flow or external borrowings).
  • Demonstrate the need for SMEIDP funding.
  • Outline the economic benefits of the project to South Australia (eg. new job creation, new sales including exports, supply chain impact, environmental/social benefits, etc.).

Project Evaluation

Successful SMEIDP applicants will be required to regularly report on progress and outcomes of the project against a
number of key criteria in accordance with the Funding Agreement, including, but not limited to:

  • new employment or jobs retained;
  • new investment; and
  • export activity (interstate or overseas).

Failure to comply with the terms of the Funding Agreement may result in the applicant being required to refund some of or the entire grant.

More information

Complete the SMEIDP Application Form available from the Innovate SA website.

Closing date for SMEIDP is 15 April 2011