Running a business is not a bed of roses. While most outsiders prefer looking at the greener side of the grass, seeing huge profits and complete autonomy, the uncertainty and risk of loss is often swept under the carpet. An entrepreneur always has to be on his toes when it comes to taking decisions of the business. Especially after the global shutdown of 2020, most amateur and veteran businessmen have witnessed the importance of smart funding opportunities and knowledge of monetary assistance options commissioned by the government.
The Australian government ensures protection of small and medium scale businesses by providing grant assistance in the form of EMDG or Export Market Development Grants. The assistance is extended to businesses who wish to explore the foreign markets. In simple terms, EMDG ensures that if you are a citizen of Australia and would like to expand your business on a global level, you can stop fretting about having to bear the financial risk.
Now, before your imagination runs amok about your future plans, hear us out! The EMDG is granted to entrepreneurs who comply with the rules laid down by the government. In case you plan to apply for the grant, here are couple of things to assess your eligibility-
Citizenship and business eligibility criteria
You will find yourself eligible for EMDG only if you are an Australian citizen. In order to apply for the grant, the business has to be one of the following-
- Sole proprietorship
- Statutory Corporation
- Co-operative, and
- Trust (export promotion only)
Furthermore, the following details must also be checked-
- The income should not exceed $50 million during the year in which the business has applied for grant
- The eligible expenses must amount to at least $15000. However, if you are applying for the first time, you can use the arrears of only previous year expenses.
- You must have principal status, subject to some exceptions which mainly protect the non-profit organisations
The business type
Another factor while applying is that not all businesses are eligible to receive grants on the mere criteria that they are expanding globally. In order to apply, ensure that you deal in one of the following businesses-
- Export import of goods or services
- Tourism (inbound only)
- Intellectual property and technical know-hows
- Event planning and management for Australia
Since, we have mentioned extensively about the eligible expenses for the grant, it makes perfect sense to know about what exactly are the expenses covered in the grant. Well, the grant shall not allow all of the business expenses, hence prior information of what can be written off is extremely important for smooth financial planning.
- The marketing visits undertaken for expansion of business are funded
- Expenses incurred in the registration of intellectual property can be included
- Expenses for distribution of free samples
- If you are planning to engage marketing consultants for business, you can include it for EMDG
- Invitation to international traders and buyers to the country
- Marketing and promotional communication
- Entry into trade fairs
- Hiring or contacting overseas representative
In case your business has incurred these expenses over the course of a financial year, the grant will cover half of the expenses. This way, the government will reimburse you some value of the total expense incurred, depending on your eligibility criteria.
Time for application submission
It is mandatory to understand that you are only eligible to apply for the grant 8 times only. Moreover, if you are submitting an application for the first time, you can club the expenses of two years while submitting.
The government gives ample time for the submission of the application. The candidate gets 5 months, beginning from July 1 and ending on November 30 to submit the application. During this time, you can think carefully and thoroughly about what it is that you want to do.
If you are under the impression that the grant is only devised for powerful business tycoons, then it is time to get more information about the grant at Rimon’s EMDG. The assistance has been devised to protect the interests of small and medium scale businessmen while at the same time, giving them ample of boost to expand their business at the international level.