Small business grants in NZ

Are there grants for small businesses in NZ?

Yes, but most government grants for small businesses in New Zealand only pay part of a specific cost, not a lump sum to spend freely. The main ones pay for management training or research and development, or help people on a benefit start a business. Usually, you pay at least half the cost yourself.

Management training: up to $5,000 a year

The Regional Business Partner Network has growth advisors throughout New Zealand who help businesses identify what might be holding them back. If they find a gap in your management skills, the Management Capability Development Fund can cover up to 50% of the cost of approved training, up to $5,000 a year excluding GST.

To qualify, your business needs to:

• have fewer than 50 full-time equivalent employees
• have an NZBN
• be trading in New Zealand
• be privately owned, or a Māori trust or incorporation
• be registered for GST, if the training is one-to-one.

You sign up online with the Regional Business Partner Network, and a local growth advisor will set up a discovery session with you. The subsidy only covers training from providers registered with the network, in areas like business planning, finance, marketing, exporting and governance.

Research and development grants

Callaghan Innovation's grants are now managed by Innovation Services, which is run by the Ministry of Business, Innovation and Employment (MBIE).

The **New to R&D Grant** pays for 40% of your first structured R&D project, up to $400,000 on total project costs of up to $1 million, for up to 2 years. You cover the other 60%. The grant is for businesses that have spent less than $150,000 on R&D and received less than $5,000 in government R&D funding in the last 3 years. Innovation Services asks you to contact them before you apply.

The **R&D Tax Incentive** gives you a tax credit of 15% of eligible R&D spending. Innovation Services also offers **R&D Career Grants**, which pay up to 6 months' salary for a new master's or PhD graduate (up to $30,000 or $35,000), and **R&D Experience Grants** for summer interns.

Grants for starting a business

Work and Income's **Flexi-wage for self-employment** helps people start a business if they're out of work and finding it hard to get a job. You need to be 18 or older and not eligible for NZ Super, have a business plan and show your business can succeed. An independent assessor checks your plan before Work and Income approves it, and approved businesses claim the subsidy every 4 weeks.

Work and Income also has a **Business Training and Advice Grant** of up to $5,000 to help you write a business plan or get training and advice. There's also a self-employment start-up payment for essential costs like your first stock. To book an appointment, call Work and Income on 0800 559 009.

Grants for primary industries and Māori businesses

The Ministry for Primary Industries offers grants and co-investment for primary sector businesses, including food and beverage makers, for projects on exports, sustainability, productivity or biosecurity. Te Puni Kōkiri's Māori Development Fund supports iwi and Māori businesses and organisations.

Finding and applying for grants

business.govt.nz's Funding Explorer lists government funding options in one place. It also warns about grant scams, so make sure you know who you're dealing with before you pay anyone to help you apply.

When a grant won't cover it

Grants rarely pay for stock, equipment or day-to-day running costs. If you need money for these, a business loan is usually the way to go. The eligibility checker shows how many lenders publish criteria your business meets, and the start-up loans guide explains the options for new businesses.

Common questions