Enterprise Solution Centre Programme Frequently Asked Questions
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- Dwayne Potter
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1 Food Innovation Australia Limited (FIAL) Enterprise Solution Centre Programme Frequently Asked Questions INTRODUCTION FIAL s Enterprise Solution Centre Programme (ESCP) connects businesses with researchers and provides matched-funding to solve technical challenges. The funding is used to develop innovative solutions to challenges and to help businesses maximize market opportunities by better responding to a market need for their products/services. Ideally a project challenge will link to one of the four FIAL Knowledge Priorities : A Global Market Place Future Consumers Enhanced Production and Value Addition Food Security and Sustainability (Further details about the Knowledge Priority areas can be found in the FIAL Competitiveness Agenda 2025 pp at: FA.pdf) GENERAL 1. What is the Enterprise Solution Centre Programme (ESCP)? ESCP is a key offering from FIAL that helps small and medium businesses, entrepreneurs and researchers, to find the right commercialisation solutions for their novel product, process or service. The programme provides limited matched funding to support access to tailored, world class research, targeted at helping you to find the right commercialisation solutions for your novel product, process or service. 2. What assistance is available under the programme? Matched funding up to a maximum of $100,000 for a project (for a project with a total cost of $200,000 or more). Guidance to help you select the right research organisation for your project. 3. What are the minimum and maximum grant amounts I can apply for? Maximum of $100,000 matched-funding (for a project with a total cost of $200,000 or more). Minimum of $2500 matched funding
2 4. What are the minimum and maximum project periods? There is no minimum project period. The maximum project length is 1 year from the date the funding agreement is signed. 5. When can I apply? Applications are accepted anytime until all available funds are exhausted. 6. Can I submit two applications for projects that are being carried out at the same time? Yes, but only if the projects are different in nature. Also, you have to demonstrate resources and capability to carry out both projects. 7. When can I start accruing eligible project expenditure? Eligible expenditure can only be accrued from the day you sign your funding agreement with FIAL. Any costs incurred prior to the agreement being signed are not eligible project expenses. APPLICANT ELIGIBILITY 8. Who is eligible to apply? A. To be eligible you must be an Australian based business: I. with a registered ABN/ACN II. with more than 1 year of continuous commercial sales III. that is in the market as a food, beverage or agribusiness producer; or as a supplier to the food and agribusiness supply chain (e.g. Packaging, ingredients etc.) B. Not be a University or Research Organisation C. Not be a Rural Development Corporation or subsidiary D. Applications from consortiums of more than one businesses are welcomed 9. Can I submit an application if I ve applied for other federal or state funding? a. You cannot make a submission for the same project when you have federal government funding b. If you have previously applied and been successful for Federal funding, and that funding has finished you are eligible to apply to the ESCP c. You can submit an application if you have state funding, but that state funding cannot form part of your matched cash contribution towards the project 10. Can I submit an application if I ve previously applied for an ESCP grant? Yes, so long as your second application is for a different purpose/project.
3 11. As a start-up without any trading history, am I able to apply? No, start-up companies who are not in the market and do not have a history of 1 year of continuous commercial sales are not eligible for funding. 12. Are there limits on applicant turnover? No. The programme is open to businesses of all sizes. 13. Do I have to operate in one of the Industry Growth Sectors to be eligible to apply? No. However, you must address one of the following Knowledge Priority areas (see Introduction): A. A global marketplace B. Future consumers C. Enhanced production and value addition D. Food security and sustainability 14. When can an eligible project start? The earliest project start date is the date that the applicant enters into an agreement with FIAL. FIAL we will not provide grant funding to unsuccessful applicants, and is not responsible for any expenditure by successful applicants until a funding agreement is in place. Any expenses prior to an agreement being signed will not be eligible project expenses. ELIGIBLE RESEARCH ORGANISATIONS 15. Which research organisations to partner with businesses to conduct the research for the project? Both public and/or private agencies are eligible Private organisations that are not registered as research providers will be considered but they must first be authorized by FIAL Typically a research organisation needs to demonstrate previous successful experience in researching the same or a related topic using sound research principals and approaches. 16. Do I need to have an identified research organisation before I apply? No, but it does make the approval process faster if there is an identified research partner. A research partner must be identified and approved before you sign your agreement with FIAL to receive your funding.
4 17. Can I use more than 1 research provider? Yes. However, each provider must still be approved. FIAL prefers that the applicants and research organisations agree on one research agency to be the principal research provider, where more than one research provider is required. The principle research provider must coordinate the project in partnership with the successful applicant(s). APPLICATION PROCESS 18. How do I submit an application? Application can be submitted online through our website: How will my application be assessed? A selection panel of FIAL team members, the Food and Agribusiness Director from the Entrepreneurs Programme (Department of Industry Innovation and Science) and their nominee, as well as two external judges appointed by FIAL, review all applications, and shortlist successful ones. 20. If my application is unsuccessful, can I reapply? Yes. However, any re-submission must be substantially different to the first application. FIAL may refuse to accept a new application if it is substantially similar to a previous ineligible or unsuccessful application. 21. How long does the assessment process take? Approximately 8 weeks. However, the selection process timeframe is dependent on a range of factors including the quality of an application and the ability of applicants to provide additional information if required. 22. How will I know if my application is successful? Successful applicants will be notified in writing and will be required to enter into a legal agreement with FIAL before being entitled to payment of project funds. Projects will not commence until you have signed your agreement with FIAL. This must be signed and finalised within 60 days from the day you are notified that your application is successful. Failure to finalise contracts within 60 days from that date, will result in the withdrawal of the offer by FIAL.
5 23. What are the key selection criteria? Your application will need to address at least the following criteria: a. Does the project address one or more Growth Centre Knowledge Priority areas? b. What are the specific consumer insights that is driving the market need for the research? c. What is the consumer or customer value proposition? d. Is there a viable path to market? (I.e. there must be a clear commercial channel and identified partners to uptake the solution from the research) e. What is the rationale for the government to fund this project? f. What is the likelihood of success and what are the risks for this project? g. What is the nature of the project? h. How will the project help access markets? i. What are the internal gaps in capability that have prevented you from realising this project? j. What internal training is required to support the project? A more complete list of selection and project eligibility criteria can be found at: Will my application be treated as confidential? Yes. FIAL has appropriate processes in place for commercially sensitive information. 25. How are conflicts of interest managed? FIAL has robust conflict of interest processes for all staff members and contractors, conflict of interest will be managed. INTELLECTUAL PROPERTY 26. Does FIAL own the intellectual property (IP) generated from the project? No. FIAL will not own project IP. You will own the IP arising from the project. If you wish, you may grant FIAL permission to use and share the IP (or part of the IP) for the benefit of the industry. However, if you fail to commercialise the IP within 3 years from the date the project is completed, FIAL will take ownership of IP. 27. Do I have to share any IP with other companies? No. Although there are some reporting obligations (see Project Reporting and Management below), your IP will not be shared with other companies. Only a generic overview of the type of challenge, solution, benefits and learnings of the project is shared (Case-Study).
6 PROJECT REPORTING AND MANAGEMENT 28. What are my reporting obligations for the project? a) You must provide a one page Case-Study of what has been learned through the project, 2 weeks after the project is completed. You and the researcher must approve the Case-study content before providing this to FIAL. A standard format can be provided by FIAL at the time of reporting b) In addition to the case study, you will need to provide an In-Confidence-Report which contains information relating to project processes, learnings, trainings and outcomes. It also describes the nature and application of any IP (without specifics of the actual IP created by or for the Company) c) Successful applicants are also expected to be able to demonstrate, when requested, evidence of their payments to the project using standard accounting practices. 29. How will the results and report(s) be used by FIAL? a) The In-Confidence-Report will be held by FIAL but may be shared with the Federal Government if requested. In this case the applicant and researcher will be notified of the request. b) The Case Study will be uploaded onto the FIAL website and used in promotion of the ESCP the Food and Agriculture Sector more widely. 30. Who manages the project once it s approved? The project will be managed by you, or a person agreed to by the research organisation and you. GRANT MONEY 31. When will I receive my grant payments? You will be required to provide a payment schedule as part of your application. Details of your payment will be specified in the schedule and will be agreed upon with FIAL. Note that no payments will be made before you have signed your agreement with FIAL. In all cases, the final payment will not be made until you have submitted your Case-Study and In-Confidence Report (see Project Reporting and Management); and you have confirmed that all internal training has been rolled out. 32. What happens if the actual expenses for the project differ to the funding agreement? The total grant amount specified in the funding agreement is the maximum grant amount that can be paid for the particular project.
7 33. Is then an administration fee taken out of the grant amount? No. 34. Are grant payments subject to GST? Yes, they are. Grant payments include the GST component. 35. Do recipients have to pay tax on the grant amount? Grants under the programme are typically treated as assessable income for taxation purposes, unless specifically exempted. FIAL does not provide any advice on tax, and recommends that grant recipients seek independent professional advice on this matter. 36. Can I use the grant to buy equipment or other capital items? a) Typically, capital items are not eligible for funding. There is an exception for small, non-production based items that are essential for undertaking the research. These items must be specified in the application. FIAL will assess your application to determine whether to approve the exemption or not. b) Capital items cannot contribute to more than 25% of your cash co-contribution. c) All approved capital items must be purchased using your cash-contribution to the project, not FIAL s funding. d) If the capital items are pre-existing, they will not count towards your cashcontribution to the project. Only capital items that you must purchase will. e) Equipment modifications are typically not eligible. 37. Are the terms of the funding agreement negotiable? The standard terms of the funding agreement with FIAL are not negotiable. The schedules covering project details, milestones, payments, reporting requirements etc., which are specific to each project (based on information provided in the application) are negotiable. 38. Can the funding agreement be varied during the life of the project? Where unexpected circumstances have affected project progress, you can request a variation, including changes to project milestones or an extension of time up to a maximum of 3 months. FIAL has absolute discretion to approve the variation request variation will be considered on a case-by-case basis.
8 MATCHED FUNDING 39. What is meant by matched funding? Matched funding means FIAL will match your cash contribution towards the project, up to a maximum of $100,000. e.g. for a project with a total cost of $250,000, FIAL will provide $100,000 and the applicant $150, Is the FIAL funding provided to me or the researcher? Funds are provided to you because you are the one applying for the funding, not the research organisation. You invoice FIAL for the FIAL portion of the research costs. You must demonstrate that both your portion, and FIAL s portion have been paid, so as to cover all research costs. 41. At what stage do I have to have the money for the matched funding? You do not need to have all matched funding at the time of the application. However, prior to signing your agreement with FIAL you must either have your matched-funding, or show evidence that you have the ability to make payments, as detailed in the agreement, when they are due. You must have the funding prior to signing your agreement with FIAL. Contributions by the applicant will be monitored throughout the project against the milestones and payment schedule in the signed agreement. FIAL funding may be suspended if there are discrepancies. 42. Can I put forward my projected sales income of the proposed product, process or service as evidence of matching funding for my grant? No because there are inherent risks and challenges in getting a new project, process or service to market. 43. What is considered to be cash and in-kind for the project? Cash means the financial contribution directly paid to a research organization for completion of milestones listed in the agreement. Cash does not cover the cost of provision of materials, labour or services used in the project and that are provided by you; this is considered an in-kind contribution. 44. Can in-kind funding be used as part of the matched funding? No this is not eligible project expenditure.
9 ELIGIBLE EXPENDITURE 45. Are legal fees considered eligible expenses? No. 46. Can I buy equipment with the grant funding? See comments at item If I pay some of my staff to do part of the project work is this an eligible expense? No. Internal staff costs are considered in-kind contribution. 48. What are eligible salary expenses for the project? Researchers salaries directly related to the research activities. Your salaries cannot be incorporated into the project costing. University faculty or school overheads are not included. 49. Is paying a project manager an eligible expense? Project Manager expenses may be included where they form part of the overall research costs; this should be agreed with the research organisation prior to submission of an application. 50. Is the cost of outsourcing some parts of a project an eligible expense? Yes but only if it is directly related to the research. Outsourced activities must be highlighted in the application and approved by FIAL. All outsourced activities not requiring direct payment by you are considered in-kind contributions and are not eligible project expenses. 51. Are patent costs an eligible expense? No. 52. Where can I find more information? For more information us at info@fial.com.au
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