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									                                                           City of Perth Policy Manual


                                                                 POLICY NO: 6.18

                                          SMALL BUSINESS GRANTS

ORIGIN/AUTHORITY                                                                         FILE NO.
Council meeting – 16 September 2008 (843/08)                                             P1014858



                                                                     OBJECTIVES

The purpose of Council’s small business grants policy is to:

1.       Support and encourage small businesses to operate in the city.

2.       Encourage innovative and creative small business projects.

3.       Support businesses that demonstrate a notable benefit to the city’s people
         and/or business communities.

This policy outlines how applications for small business grants will be assessed.


                                                             POLICY STATEMENT


1. Policy intent

This Policy deals with requests for cash grants from small businesses based in the
City of Perth. Examples of items that grants may be used for include business start-
up or expansion, purchasing equipment, securing intellectual property rights,
training or for other small business projects.

It is not intended that these grants be used to support the general operation of
small businesses and should not be provided for staff wages, utilities, rental or loan
payments. The financial stability of the business should not be dependent on
approval of a small business grant application and businesses should demonstrate
the financial viability of the business project.




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                                                           City of Perth Policy Manual


                                                                 POLICY NO: 6.18


2. Grants

Given that generally, small business owners personally take on substantive risks in
their businesses, they have unique incentives to be resourceful and creative in their
methods. This policy aims to stimulate commerce by supporting local business and
entrepreneurial activities by providing cash grants of between $500 and $2,000. It
also provides an opportunity to advance the City of Perth’s image as an
organisation that is responsive to the needs of the local business community.

The support of entrepreneurial activity and small business development will help to
create diversity and activity. Small businesses make a great contribution to the
liveliness of a city and these grants will support the work that is occurring in the
business community.

         2.1. Eligibility:-

         Any small business that is based or located within the City of Perth Local
         Government Area is eligible to apply. The business must:

         •         Have a valid Australian Business Number.
         •         Have the appropriate insurances and licences.
         •         Be defined as a small business as per the Small Business Development
                   Corporation’s (SBDC) definition, which is:
                    -   Independently owned and operated.
                    -   Closely controlled by owners/managers who also contribute most, if
                        not all the operating capital; and
                    -   The principal decision making functions rest with the
                        owner/managers.

         The City of Perth will not consider applications from:
         • Government departments or agencies.
         • Unincorporated associations, branches, franchisees and subsidiaries of
             larger companies.

Northbridge. Businesses that are receiving funding from the State and/or Federal
Government are still eligible for this grants program. Successful applicants for this
grants program are not restricted in any way when applying for other existing or
future grants, sponsorship or donation programs (for example - heritage) offered by
the City of Perth.



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                                                           City of Perth Policy Manual


                                                                 POLICY NO: 6.18



However, businesses may not receive a City of Perth small business grant for the
same business project on more than one occasion. For example, small business
grants are not to be provided for annual business projects such as festivals,
recurring events or projects.

         2.2 Application Process:-

                   2.2.1          When an application for a small business grant is received it will
                                  be assigned a reference number and the applicant’s identity will
                                  remain confidential.

                   2.2.2          The application will then be assessed against the Assessment
                                  Criteria listed in 2.3 below.

                   2.2.3          A recommendation will be presented to the Chief Executive
                                  Officer.

                   2.2.4          If the application is unsuccessful a letter will be sent to the
                                  business with an explanation. If successful, discussions between
                                  the business and administration will proceed.

                   2.2.5          Small business grants between $500 and $2,000 to be approved
                                  by the Chief Executive Officer.

         2.3 Assessment Criteria:-

                   Grant applications will be assessed against the following criteria:

                   2.3.1          Essential:
                                  -   The extent to which the project contributes to the program’s
                                      objectives (above).
                                  -   A project plan including a financial forecast that
                                      demonstrates the financial viability of the business project.

                   2.3.2          The extent to which the businesses:
                                  (Must meet at least one of the following)
                                  -   Demonstrates business readiness.
                                  -   Introduces a new or innovative product or process (goods or
                                      services) to the city.



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                                                                 POLICY NO: 6.18

                                  -   Create networks with other businesses or organisations.
                                  -   Is involved in small-scale manufacturing or production within
                                      the city (for example - Jewellers, designers).
                   2.3.3          Benefit:
                                  -   Does not have an adverse effect on public safety or the
                                      environment.
                                  -   Activates underutilised space (for example - laneways or
                                      upper floors).
                                  -   Contributes positively in social, environmental or economic
                                      ways to the City of Perth.


         2.4 Payment terms:-

         Grant funding will only be provided as reimbursement for spending or costs
         incurred after the small business grant application has been approved.

         To claim reimbursement for spending, businesses must complete and submit:

         •         a claim form (to be provided to them);
         •         a business invoice; and
         •         proof of payment where the date must be later than the grant approval
                   date.

         The City of Perth should provide reimbursement within 30 calendar days after
         accepting a request for reimbursement.

         On occasions where the amount on the receipt (proof of payment) submitted
         by the business for reimbursement exceeds the accepted grant amount,
         reimbursement will be provided up to, but not greater than the approved grant
         amount. That is, if a business receives grant approval for $2,000 and submits
         a receipt for an item costing $2,500, reimbursement will be provided up to
         $2,000.

         In addition to cash grants, businesses will be referred to the SBDC for training
         and development courses, and other learning opportunities.




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                                                           City of Perth Policy Manual


                                                                 POLICY NO: 6.18


Reference:-
•   Small Business Grants Application Kit.
•   Small Business Grants Information Kit.




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