EMDG grant refers to the Export Market Development Grant. These are grants given to exporters to encourage them in the export business. This scheme is the key financial assistance given by the Australian government to current and potential exporters. Many SMEs fail to grow into the export market for lack of finances, but this scheme provides the needed financial support.
The scheme works by reimbursing up to half of the export promotion expenses incurred by a business. This applies for expenses that go beyond $5000. The grant size has a limit of up to $150,000 per annum. Applicants who qualify for the grants can enjoy them for up to 8 Years.
EDMG Qualification Requirements
First, the grants are available to all types of business establishments, whether large or small. Individuals or sole proprietorships operating in the export business can apply for the grants. Partnerships, companies, associations, statutory corporations, and all associations that engage in the export of various goods and services are eligible for these grants. The eligibility list also includes trusts that have engaged in export promotion activities.
Apart from engaging in export promotion activities, a business must also have an income that falls below the 50 million dollar limit in the grant year. This is to make sure that the organizations that receive the financial grant need it. Organizations with incomes beyond this limit are excluded because they are already established in the export market. Most SMEs qualify by these criteria.
Moreover, for you to qualify for the grant, your business must have incurred a minimum of $15,000 eligible expenses. Applicants who want the grant for the first time can combine expenses incurred in two years. Not only does this widen the eligibility scope, but it also encourages small businesses to venture into the export market.
For your business to be eligible, you must have promoted various activities, including inbound tourism. Businesses that support the export of intellectual property, technology, and know-how are also eligible for financial assistance. Additionally, organizations that promote conferences and events held within Australia also qualify for the grants.
Eligibility Exceptions for EDMG
Unfortunately, some businesses and organizations take part in export activities that do not qualify for the grant. The principal status of the export business is a key factor in determining eligibility. For example, non-profit export bodies do not qualify for grants. Also, if you are applying for the first time, you will be required to fulfil various grant entry requirements, such as providing your financial records and other documents that contain information regarding the nature of your business.
According to the EMDG Act, some organizations that are not eligible for the grant can obtain approved status. This status enables them to apply for a grant in their own right. Approved bodies, which are export-focused associations promoting on behalf of various industries, are an example of organizations with approved status. Another example would be Joint Ventures who can also qualify for the grants by obtaining the approved status.
Wind Up
Venturing into the export market can be hectic, especially if your business is still an SME. That said, financial aid is the greatest kind of support you may need for your business to grow into the international market. Luckily, EMDGs are there to give you the boost you need to take your business to the next level.
