Backing Business in the Bush Fund

1. What is the Backing Business in the Bush Fund?

The $50 million Backing Business in the Bush Fund (the fund) is a dedicated investment scheme providing cash grants to Queensland small to medium sized businesses to undertake projects in regional Queensland.

The objectives of the fund are to:

• increase productivity, long-term commercial sustainability, and competitiveness of regional Queensland businesses to capitalise on domestic and export growth opportunities
• support businesses and industries to further adapt to economic change with sustained or increased employment and/or upskilling opportunities
• increase private sector investment in regional Queensland to assist projects to be built
• support businesses to adopt technology and/or practices to improve environmental sustainability.

2. Who is eligible to apply?

Queensland small to medium sized businesses with projects in regional Queensland may be eligible to apply.

Businesses must:

• have been trading for a minimum of three (3) years
• employ between 5 to 199 (including employees based in South East Queensland and regional Queensland)
• have had an annual turnover of $1 million in each of the last two years
• meet all the eligibility requirements of the fund.

Entities with less than three years trading may only apply if there is a parent entity or related party that has three years of signed financial statements and can provide evidence that supports management, technical and financial capability to undertake the proposed project.

3. Is there a specific industry focus?

The fund focuses on supporting projects in traditional industries and sectors defined as follows:

• value adding to agriculture, forestry, and fishing products
• the mining equipment, technology, and services (METS) sector
• transport and logistics
• manufacturing products for use in or in connection with:
  • the mining industry
  • processing minerals
  • agriculture
  • forestry
  • fisheries
  • processing produce of a primary industry
  • transport
  • defence.

Ineligible industries as defined in the glossary of the fund guidelines include:

• retail
• tourism
• accommodation and food services
• construction
• rental, hiring and real estate services
• public administration and safety
• education and training,
• health care and social assistance
• arts and recreation services.

For more information on the fund’s eligibility requirements, please refer to the guidelines in Section 3 – Scope of the fund and Applicant eligibility checklist.

4. My business is in South East Queensland, but I have a project I want to deliver in one of the regions? Can I apply?

Yes. Providing your business and project meets all the required eligibility criteria, small to medium sized businesses located in South East Queensland may apply.

For projects to be considered for funding, they must:

• be located in regional Queensland
• be within the eligible industries or sectors identified in the fund guidelines
• align with the objectives of the fund
• be investment ready as per definition in the glossary of the fund guidelines
• demonstrate a need for State assistance to realise outcomes under the fund’s assessment criteria.

For the purposes of the fund, South East Queensland local government areas include the City of Brisbane, City of Gold Coast, Ipswich City, Logan City, City of Moreton Bay, Noosa Shire, Redland City, Sunshine Coast, Scenic Rim, Somerset, and Lockyer Valley. Projects located in these areas are not eligible under this fund.

5. What kinds of projects are eligible? Are there any examples?

By way of example, the types of projects that may be supported are projects that:

• Enable new skills and capabilities, reduce expenditure, increase revenue, or develop a new revenue stream by introducing new or upgrading existing technology, or adopting business innovation and automation. For example, through use or conversion of waste products generated within the business.
• Aim to expand, onshore or replace imported manufacturing products and services used in the mining, agriculture including forestry and fisheries, defence, and transport and logistics industries.
• Expand capabilities and productivity by the installation, implementation, and integration of:
  • inventory management systems
  • supply or value chain integration management system
  • optimising or augmenting current resources or equipment or new equipment/ technology investment
  • networking and digital connectivity
  • business model innovation
• Differentiate or diversify existing products and services.

For more information on project eligibility please refer to Section 3.2 – Eligibility in the guidelines.

6. What funding is available?

The Backing Business in the Bush Fund has $50 million available, which will be delivered through a competitive funding round.

7. How much funding can applicants apply for?

Eligible applicants can apply for funding between $500,000 to $2 million for an eligible regional project.

All grants offered and figures referenced in the guidelines are GST exclusive. GST will be applied on top of the agreed grant value when payment is made.

8. Are financial co-contributions required?

Yes. All successful applicants will be required to provide a co-contribution for the project.

Co-contributions must be cash and at least 50 per cent of the project’s total eligible capital expenditure. The co-contribution may be obtained from other government grants, cash reserves, equity, or debt. However, contributions from all government sources (including from the fund, if successful) must not exceed two-thirds of total project funding.

Please note, in-kind expenditure will not be considered as a co-contribution.

Applicants will be required to provide evidence of the status of all its financial co-contributions during the application process and must be able to secure co-contributions on an unconditional basis as a precondition within any funding agreement.

9. What costs can be covered under the fund?

For a full list of eligible costs and capital expenditure, please refer to Section 5 – Eligible and ineligible project expenditure in the fund guidelines.

It should be noted that funding may only be used to reimburse eligible project costs. Any ineligible project costs must be funded by the applicant or its parent company or other third-party contributor. If the project scope includes any ineligible costs, applicants should identify these in the project budget in their applications and ensure there are sufficient financial co-contributions to cover them.

10. How will the funds be disbursed/paid?

Grant payments for approved projects will be paid in instalments as reimbursements, following agreed milestones, and the associated project expenditure being verified to the State’s satisfaction.

The State may consider an initial payment of up to 20 per cent of the total grant funding for a project once the agreement is signed and all conditions precedent are met. Applicants will be required to provide security for the initial payment.

Where practical, payments may be staged through project delivery to assist with project cash flow, however, no payments will be made in advance of verified project expenditure. Successful applicants may also be required to provide security for milestone grant payments.

The State is not obligated to provide any assistance, unless and until a funding agreement is signed by all parties and any conditions are met.

11. If I receive funding, will I be subject to GST?

Grant payments and State assistance typically have tax implications for businesses. Applicants are required to seek their own independent tax advice regarding these matters.

Successful applicants must be registered for GST, and where GST is payable, successful applicants will be paid the approved grant amount plus 10 per cent by the State.

12. What timeframes apply to approved projects?

Projects approved for funding must be delivered and operational within 18 months of executing a funding agreement with the State.

Projects must be investment ready and must have a commitment from the board or senior levels of management as appropriate to commence and proceed to be considered for funding.

13. Can applicants submit more than one application?

No. Applicants are only allowed to submit one application.

14. What if the proposed project involves two or more partners? Can I partner with another business and apply for funding and/or form a consortium?

Yes. Regional collaboration is encouraged. Eligible applicants may partner with other businesses and/or form a consortium to seek funding for an eligible, mutually beneficial project. In such cases, however, one eligible business must be identified as the lead partner and take responsibility as the applicant. Consortium members may seek funding for one eligible project only.

If the application is successful, the lead partner as the applicant must be able to enter into an agreement with the State and take responsibility for contract management and project delivery.

Please note, consortiums and/or a business partner may involve an ineligible business (except for those subject to any insolvency) but they cannot be identified as the lead partner and applicant.

15. What if a proposed project crosses local government boundaries?

Eligible applicants can propose eligible projects that cross local government boundaries. However, the proposed project must not be located in an ineligible South East Queensland local government area.

16. How do I apply? And if I need assistance with my application, what do I do?

Before applying, businesses must first read the fund guidelines and refer to the applicant checklist to check their eligibility.

All applications will be assessed using a merit-based process against the eligibility requirements and assessment criteria. Applications will be assessed through a two-stage process.

Applications for the fund are to be completed and submitted electronically via Queensland Treasury’s SmartyGrants online portal. To enter the portal please click the ‘Apply here’ button on the webpage.

The SmartyGrants portal will include further instructions for applicants including hints and tips, and frequently asked questions specific to the application process.

Contacts for SmartyGrants technical support are also listed in the portal.

17. Are applications still open?

No. Applications are now closed.

Stage 1 applications closed at 11:59 pm AEST Sunday 14 January 2024.

Stage 2 applications closed at 11:59 pm AEST on Sunday 31 March 2024.

18. When will approved projects be announced?

Fast tracked applications: Successful applicants have been advised, and announcements will be made in due course.

Standard applications: Successful applicants are expected to be advised by the end of August 2024, and will be announced in due course.

For more information on the fund, please refer to the guidelines.