RED Grants Preparing Your Application
Thank you for your interest in applying to the South West Regional Economic Development (RED) Grants Program.
In this guide you will find useful information to help you prepare a quality funding submission and increase your chances of success.
We wish you well with your application and encourage you to contact our friendly team if you have any questions.
Is your project a good fit?
RED grants are for locally-driven projects that stimulate job creation and economic growth in the South West region of Western Australia. The program aims to help grow business activity and broaden the economic base of the region.
All applications are assessed on a competitive and merit-based process that considers a range of criteria, including how the project:
- Supports the RED program objectives
- Adds value to the regional priority sectors
- Invests in local content outcomes (buying local)
- Develops industry partnerships and collaboration
You must be able to demonstrate how your project is sustainable over the long term and provides ongoing economic benefits and future prosperity for the South West region.
How will your project benefit the region?
It is important that you look beyond the benefits your project provides to the growth of your business.
In developing your application, consider how others in the industry will benefit through shared knowledge or innovation? Will the project allow other ancillary businesses to grow? Will it increase local consumption or create other flow on benefits?
Have you planned ahead?
Competition for available funding is strong and to ensure your application stands out you will need to show that planning has been undertaken to demonstrate the viability of your proposal.
At your own cost, it is expected that relevant studies, including economic impact and feasibility, designs, costings, and approvals are completed and included with your application.
Sufficient time should be allocated to these processes, as the time and effort required to properly plan is often underestimated.
What can RED grant funding be used for?
RED grant funding is available to support costs associated with the delivery of new projects. It is not for operational costs or retrospective expenditure.
Project costs must be substantiated by quotes, and the budget should reflect the total cost to complete the project in its entirety. Generally eligible project costs involve the purchase of goods or services to deliver the project.
Applicants should provide a full budget breakdown to demonstrate that the project has been properly costed, including evidence that finance is available to cover the required co-contribution.
What is not eligible?
Expenses that are not eligible include:
- Costs incurred to plan and develop your project (retrospective expenditure)
- Ongoing expenses such as operational or maintenance costs
- GST payments
- Overheads such as rent, insurance, licencing, power, etc.
- Existing staff salaries
The above expenses cannot be included in the project budget, either against the RED grant request or to make up the minimum 50% cash co-contribution.
Staff working on the project as part of their usual employment is not considered an eligible project cost. For more information please contact the Commission to discuss individual circumstances.
Is the timing right?
RED grant funding is available for projects that are advanced in their planning and once commenced, will be completed within a 12-24 month timeframe.
Your project timeline should make provision for the assessment and decision-making process, which can take up to six months to complete. Should you commence your project prior to the assessment being finalised, your application may be ineligible.
What does local content mean?
Local content refers to the goods and services procured locally to deliver your project. However, it is much more than just that. Buying locally helps:
- Build the capability and sustainability of local suppliers
- Increase regional business participation and job opportunities
- Support emerging businesses or new industries in the region
- Provide jobs for subcontractors, apprentices and trainees
For more information, contact SWDC’s Local Content Officer on 9792 2000 or email [email protected]
Why is market research so important?
We understand you are excited about your new project and the opportunities it provides. But unless you can convince others, your idea may remain exactly that.
Whether it’s for your own reassurance, or to build a strong case for a business funding application through REDs or other means, it is vital to analyse market conditions to understand the supply and demand in your niche to inform your business plan.
A well-researched business plan is one of the best tools you can have to prove the viability of your venture and how you will sustain it in the future.
A few important tips
- You have a great project and an excellent business case, but have you the capacity to deliver the project within the allowable timeframe?
- Can you demonstrate the capacity to absorb cost overruns and maintain the financial stability of your business?
- Have you addressed all uncertainties in relation to your project? If not, this may be considered a risk, which will impact your chances of success.
- Have you made allowance for contingencies, and fully costed out every aspect of your proposal?
- Have you forecast future operating and maintenance costs beyond the life of the project?
- Does your project demonstrate value for money? How certain are you that it’s the most cost effective way to achieve the desired outcome?
We’re here to help
If you have any questions, or need help with your application, please contact our team on 9792 2000 or email [email protected] .