Capability Building Grants - FAQ

Before You Apply

• How do I get an application form?
• When can I apply?
• Can I send my application electronically?
• Can I apply more than once?
• What level of information do I need to provide?
• Why does NZTE need my financial information?
• Is my information kept confidential?
• Are any markets, or product and services excluded?
• Can I get help to start a business?
• Can I get funding to buy equipment, machinery and stock?
• What do you mean by “business as usual”?
• There are yearly limits on funding – when does the year start and end?
• How do I contact NZTE about Capability Building funding?

After You Have Applied

• What happens once I have applied?
• How long does NZTE take to process my application?
• My application has been delayed – why?
• How are applications assessed?
• How is funding allocated?
• What if my application is unsuccessful?

After Your Application As Been Approved

• How do I make a claim?
• How long does a claim take?
• What period can I claim costs for?
• What is co- funding?
• What am I expected to contribute?
• Does the funding include GST?
• Can I vary the terms of the letter of offer?

Miscellaneous Questions

• Do I have to account for the funding in my taxes?
• How do I find out about Small Business Advisory Boards?
• What happens at the end of the financial year?
• How do groups of businesses working together apply?
• What other funding is available?
• Where do I get funding for research and development?
• I have spent lots of money on my project already, can I claim this back?
• Is there special funding available for Maori enterprises?
• Is there special funding available for Pacific Island businesses?
• Do I need an NZTE client manager to be able to apply for funding?

Before You Apply

How do I get an application form?
There are three forms depding on the type of funding you are applying for.

See Step 2 - Download an application.

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When can I apply?
Anytime.

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Can I send my application electronically?
No. The applications are available online but hard copies must be submitted.

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Can I apply more than once?
You can apply for, and receive, funding more than once.

If you receive funding for a project in one year, you can apply for funding for a different project another year. You can also file applications for several projects in one year, so long as the total funding sought doesn’t exceed the annual maximum of $20,000, or relates to the same type of activity.

For a list of these activities see What can funding be used for?

However, each application must be for a different capability building activity as you will only be funded once to undertake a particular activity.

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What level of information do I need to provide?
The application form asks for succinct information about:

• your business, including its markets and key parties involved in the business
• your turnover
• how you will pay for your capability building project. Capability Building funding is provided on a reimbursement basis. You will need sufficient cash flow to finance up-front costs of the project until you are reimbursed.
• the project you plan to undertake, including costs, timeframes and suppliers
• the expected impact of the capability building project on your business.

You must also provide a bank deposit slip, and quotes from the suppliers you plan to use on your project. Quotes must be on the supplier’s letterhead and must include the supplier’s:

• Name
• Address and contact details
• GST number
• Company/personal profile
• Terms of reference for the work to be done on the project including:
  • Scope of the work
  • Cost of work
  • Hourly rate and time frame for activities
  • Disbursements

Most of the information we require should be readily available from your existing business records, or from your business or project plans. If not, then gathering it will be useful for your business.

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Why does NZTE need my financial information?
NZTE has a responsibility as a public agency to make the best possible use of Government resources. We need your financial information so we can Thouroughly assess your application, and ensure we make decisions that maximise the benefits to New Zealand’s economy.

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Is my information kept confidential?
NZTE holds all proposals and client information in the strictest confidence.

However, we are subject to the Official Information Act (OIA).

That means information we hold can be requested by third parties, and we must provide information as required to do so by law. This information may include:

• the name of businesses that receive our funding
• the amount of the funding
• contact details for businesses that have received funding
• general information about the projects we are funding
• the outcome of an activity we helped fund.

The OIA allows for information to be withheld for several reasons, including if it is subject to an obligation of confidence or is commercially sensitive. NZTE will not release any details beyond those listed above without first consulting the client involved.

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Are any markets, or product and services excluded?
To comply with New Zealand’s international trade obligations, funding cannot be used for activities in Australia.

Also see Ineligible Costs.

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Can I get help to start a business?
No. For information about other help available to start a business see the business.govt.nz website.

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Can I get funding to buy equipment, machinery and stock?
Capability Building funding cannot be used for any “business as usual” activity, such as buying equipment, machinery and stock. For information on how to raise capital to fund these activities see the business.govt.nz website.

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What do you mean by “business as usual”?
Business as usual means anything done in the normal course of operations. So for a project to be other than business as usual there must be a change in your current business model – such as such as a change in the geographical market, client base, product line, competitors, value proposition, distribution/partner channels or marketing mix.

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There are yearly limits on funding – when does the year start and end?
The year starts on 1 July and ends on 30 June. So a business can apply for up to $20,000 of funding for each July to June financial year.

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How do I contact NZTE about Capability Building funding?
Call our Enterprise Hotline on 0800 555 888 or contact your assigned administrator.

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After You Have Applied

What happens once I have applied?
We will check that your application is complete and that we have all the required information. Once your application is judged by us to be complete, we will begin processing it.

We will assess your application within 30 working days and will notify you by mail about the outcome. If you are successful, we will send you a letter offering you funding.

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How long does NZTE take to process my application?

• Once your application is judged by us to be complete, we will begin processing it.
• We will attempt to assess your completed application within 30 days.
• We will notify you by mail about the outcome. If you are successful, we will send you a letter offering you funding. If you are not successful, the letter will tell you why.

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My application has been delayed – why?
The most common reasons why applications are delayed are that:

• some of the information we need is missing or is incomplete
• the application hasn’t been signed, or has been signed by a manager who is not a director. Applications need to be signed by a director of the company.

If this happens, your application will be returned.

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How are applications assessed?
Applications are assessed against the following areas.

• Robustness of the project plan.
• Your ability to implement the project.
• The potential to improve your business’ performance.
• The economic benefit to New Zealand of improving your business’ performance.
• The amount of difference that funding will make.

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How is funding allocated?

• The financial year for the grant runs from 1 July to 30 June. Funding is allocated on a first come first serve basis.
• Your application will be assessed and if successful, funding will be approved. The date your application is approved will determine into which financial year funding will fall.
• If successful, the grant period will be valid from the date we receive your completed application (‘retrospective date’) to 12 months from the date of approval. We will send you a letter of offer which gives all the relevant details, including the retrospective date and grant expiry.
• Applicants can apply for up to $20,000 co-funding per financial year.

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What if my application is unsuccessful?
If your application is unsuccessful you will be advised of the reason. A formal right of review is provided.

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After Your Application As Been Approved

How do I make a claim?
If your application is approved we will send you a claim form.

Claims take about four weeks to process. But it can take longer if we’re processing a high volume of claims, or if the documentation you supply is incomplete.

We will only reimburse you for activities and amount approved in your letter of offer.

You can claim for activities undertaken in the 12 month funding period. This period will be stated in the letter that we send you when we offer you funding. Claims can be made any time within this 12 months.

Also see How to submit a claim.

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How long does a claim take?
Claims usually take about three weeks to process - but it can take longer if we are processing a high volume of claims or if the documentation you send us is incomplete.

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What period can I claim costs for?
The letter we send you when we offer you funding will tell you what period you can claims costs for. Claims can be made any time within this period.

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What is co-funding?
Enterprise Development Grants for Capability Building operate on a co-funding basis. That means NZTE contributes up to half the costs (up to a limit), while your business contributes the rest.

Your 50 percent contribution must be monetary. In kind contributions, such as the use of facilities and resources, are excluded.

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What am I expected to contribute?
Enterprise Development Grants work on a co-funding basis. That means NZTE will cover up to half the cost of approved activities (up to a maximum of $20,000), while your business contributes the rest.

Your 50 percent contribution must be monetary. In-kind contributions, such as the use of facilities and resources, are excluded.

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Does the funding include GST?
Yes. All funding amounts include GST, so your applications and claims should be based on GST-inclusive amounts.

The minimum funding available is $1000 a year, including GST. And the maximum funding contribution from NZTE is $20,000 a year, including GST.

If you are registered for GST you will need to account for the GST portion of the funding in your GST return.

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Can I vary the terms of the letter of offer?
NZTE may consider varying the terms of the offer letter to:

• extend the funding period to allow service providers to complete billing so a final claim can be submitted
• extend the funding period to allow work to be completed where it was delayed due to unforeseen circumstances such as illness
• allow a change in service providers, as long as the work done is materially the same, the costs are the same or less and the work will be completed before the 12 month funding period ends.

Supporting documentation from the supplier must be submitted at time a variation is requested.

NZTE must pre-approve all variations to the letter of offer before the funding period ends or a new service provider is engaged.

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Miscellaneous Questions

Do I have to account for the funding in my taxes?
All Capability Building funding is assessable for income tax purposes.

The funding amounts are also GST-inclusive, so your application and claims should be based on GST-inclusive amounts.

If you are registered for GST, the GST portion of the funding will have to be accounted for in your GST return.

You should take advice from an accountant or tax specialist about the tax implications of funding, particularly the effect on costs and depreciation that can be claimed in your tax return.

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How do I find out about Small Business Advisory Boards?
For help finding Advisory Board members phone biz information on 0800 42 49 46 or contact your local Economic Development Agency.

To ensure you are fully aware of all liabilities and potential risks associated with Advisory Boards, please refer to the Small Business Advisory Board Guide (PDF, 64 KB) before applying.

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What happens at the end of the financial year?
Funds are allocated only when an application has been processed, not when it is received by NZTE. If you plan to make a second application in a subsequent year, submit the first one well before June to ensure that it is assessed before the financial year end.

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How do groups of businesses working together apply?
We do not fund groups under the Capacity Building grant.

The funding limits that apply to individual businesses also apply to each business involved in a collaborative project. Each business involved must claim at least $1000 per application, and no more than $20,000 a year.

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What other funding is available?
Enterprise Development Grants - Market Development

• The Market Development component is to assist businesses with the implementation of significant international market development initiatives including expenditure related to market visits, in-market representation, advertising and promotion, marketing materials, trade fairs and events, and market research.

See the business.govt.nz website for information on other funding for businesses.

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Where do I get funding for research and development?
The Foundation for Research Science and Technology offer funding for research and development.

For more information see the business.govt.nz website.

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I have spent lots of money on my project already, can I claim this back?
We only reimburse costs incurred in the funding period, which runs for 12 months after the date on the contract we send you. You can’t claim costs incurred before the date on the contract, or costs incurred more than 12 months later.

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Is there special funding available for Maori enterprises?
Capability Building funding is available to all businesses, including Maori business.

For information about other funding for Maori businesses see the business.govt.nz website.

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Is there special funding available for Pacific Island businesses?
Capability Building funding is available to all businesses, including businesses run by people of Pacific Island descent.

For information about other funding available to people of Pacific Island descent see the business.govt.nz website.

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Do I need an NZTE client manager to be able to apply for funding?
No, but you may want to talk to a client manager about other programmes and services that may be appropriate for your business, particularly if you plan to start exporting. To get a client manager contact NZTE on 0800 555 888 or contact your assigned administrator.