This program aims to drive jobs and business growth by providing emerging scalable fast growth businesses with capital to address barriers in accessing finance from commercial sources. It provides access to funding when traditional lenders are unable to assist and allows your business to continue growing with additional capital without requiring personal assets as security.
The program is part of the Jobs for NSW initiative which provides financial support to startups and emerging and fast-growth small to medium enterprises (SMEs) to build momentum and grow jobs. It aligns with the overarching objectives of the Jobs for NSW Act 2015 (NSW):
– To facilitate the creation of new jobs in NSW in a way that is responsive to changes in the economy.
– To facilitate the development and attraction of new businesses, and the consolidation of existing businesses in NSW.
– To facilitate the provision of innovative, cost-effective and strategically targeted incentives for economic development in NSW.
Individual loans with a principal value of between $200,000 and $500,000 are available for a term of up to three years. The interest rate is 9.2% p.a. which will be fixed for the duration of the loan.
Due diligence and financial risk assessments on shortlisted applications will be undertaken for Jobs for NSW by a third party advisor, Equifax Australasia Credit Ratings Pty Limited. The cost of this screening is $4,895 (including GST) per application, which will be recovered from applicants who are successful in accessing an AGL. The applicant will also be charged legal costs up to $5,000 associated with preparing loan documentation.
The application process are as follows:
– Applicants must speak to a financial advisor to assess the suitability of a loan for their business.
– Book an initial assessment with one of the program’s Client Engagement Advisors, or complete the preliminary assessment form online. Eligible businesses will be invited to apply for the program.
Who Can Apply?
Eligible applicants include businesses that must:
– Have a registered ABN and be an incorporated company.
– Have a minimum of five employees (these can be full-time, part-time or casual).
– Be creating a minimum of 10 additional FTE jobs within two years in metropolitan NSW (Sydney, Newcastle, Wollongong).
– Be able to demonstrate likely revenue of at least $500,000 within 12 months.
– Have been trading for a minimum of one year.
– Demonstrate future growth for at least one year, evidenced by secured pipeline or contracts.
– Demonstrate that they have been unable to obtain commercial finance.
Eligible projects are those that accelerate the growth and job creation within the business. This must be done by directly adding the equivalent of at least 10 FTE jobs in the business in metropolitan Sydney, Newcastle and Wollongong within two years.
AGL funds cannot be used to refinance other loans.
Main Assessment Criteria
The main assessment criteria include:
– The applicant’s eligibility for the program.
– The extent and nature of the jobs created.
– The creation of ‘additional’ jobs in NSW, being jobs that would not otherwise be created in the absence of Jobs for NSW support.
– The ability of the company to service the loan, based on current and future cash flows, justified by contracts and/or pipeline.
Applications will also be assessed competitively by Jobs for NSW on the information provided by the applicant with regard to the following assessable areas:
– Market opportunity
– Value proposition
– Management capability
– Other items that impact the performance of the business