Community Development Financial Institutions (CDFI) - Microenterprise Development

Dates

Application period

until
 AEST

General enquiries:

1800 625 136

Technical support:

1800 020 283

TTY:

1800 555 677

This funding round has closed.

 

The Australian Government is commencing an open selection process for providers to deliver services under Financial Wellbeing and Capability Activity – Financial Resilience – Community Development Financial Institutions (CDFI) – Microenterprise Development for the period from 2015-2016 to 2016-2017. Funding may be offered to up to three organisations as a result of this process.

The aim of the CDFI – Microenterprise Development project is to increase the economic participation of disadvantaged individuals. It does this by providing funding directly to CDFIs that support those on a low income to:

  • increase their business-planning and workforce skills;
  • develop sustainable microenterprises where appropriate; and
  • create opportunities for employment, including self-employment.

Grants are provided to support the development of financially sustainable community finance organisations capable of delivering microenterprise solutions to low-income individuals and families.

Government funding is provided to meet the costs of service delivery and operational expenses and cannot be used for the purposes of providing loan capital.

It is a condition of funding that CDFIs have a source of loan capital, generally supplied through a relationship with a mainstream bank or other investment or philanthropic partner. In their application for funding, organisations must provide evidence of an existing arrangement with a capital provider (such as a bank), who will guarantee the provision of loan capital should their application be successful. Applications must be accompanied by a letter of support from the capital provider (or equivalent documentary evidence of sufficient capital). It is expected that small business loans will be offered at market or below market interest rates. If an application is submitted without supplying proof of an established relationship with financial institutions the application will not be assessed.

It is also a condition of funding that CDFIs comply with the relevant legislative requirements (including National, State and/or Territory requirements) to deliver this initiative. In their application for funding, organisations must provide a letter confirming compliance with relevant legislative requirements (including National, State and/or Territory requirements) required for their service delivery model. If an application is submitted without supplying proof of compliance with the relevant legislative requirements the application will not be assessed.

In order to assist the Department’s assessment of the sustainability of an organisation, organisations must complete and attach a budget (using the template at Attachment A) to their application. The budget will assist the Department to determine the value for money of each application.

More information

Additional information about the CDFI – Microenterprise Development funding round can be found in the following documents:

  • Funding Round Summary provides detailed information on the funding round, including the amount available and eligibility requirements.
    • A requirement for the funding round is that attachments as specified in the Funding Round Summary must be provided with your application.
    • For instructions on how to attach requested attachments please refer to the Frequently Asked Questions (Q7 of the Applications and Selections Processes section).
    • If you do not attach the documents specified in the Funding Round Summary your application will not be assessed:
      • Letter of support from your capital provider (such as a bank) or equivalent documentary evidence of sufficient capital.
      • Documentary evidence that your organisation meets the relevant legislative requirements (including National, State and/or Territory requirements) to deliver this initiative.
  • Application Form must be completed and submitted by the closing date to apply for funding in this round.
  • Programme Guidelines Overview provides information about how grants are funded for this program.
  • Questions and Answers provide applicants with a list of frequently asked questions and answers.
  • Streamlined Grant Agreement General Grant Conditions
  • Attachment A Budget Template

Please note:  Any attachments to the Application Form which are not specifically requested in the Funding Round Summary will not be considered as part of the assessment process.

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