Grants and funding, Manufacturing News, South Australia

Second round of Economic Recovery Fund to help Small businesses

A $20 million State Budget initiative will drive investment in energy-efficient equipment to help deliver financial relief for small businesses in manufacturing and other industries.

Round two of the Economic Recovery Fund (ERF) will support up to 8,000 eligible small businesses and not-for-profits to invest in more energy-efficient equipment or improve energy usage and costs.

Minister for Defence and Space Industries, treasurer Stephen Mullighan said Round two, like round one, will see the government partner with and aid small businesses.

“Round one has already benefited 17 South Australian companies, helping them to grow and become more competitive.

“Round two will see the government partner with small businesses, to help them reduce energy costs not just now, but for the long term,” said Mullighan.

The grants, ranging from $2,500 up to $50,000, will match business investment into eligible equipment dollar for dollar.

A focus on sustainability will result in a win-win for small businesses, aiding in the transition toward a net-zero global market, while also having an immediate impact in reducing energy usage and therefore cost.

The State Government launched the $154.2 million ERF in 2023, with manufacturing and tourism businesses benefitting to the tune of $26.3 million from its inaugural round.

Among them, is Lonsdale-based defence and space company REDARC, which received $2 million towards Stage one of establishing a Defence and Space Centre of Excellence.

The project will result in 60 new full-time jobs and the upskilling of a further 23 existing employees.

Stage 1 is expected to help grow REDARC’s exports to $24.3 million, an increase of 145 per cent.

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