The total funding allocated to the Local Jobs Fund is $91.5 million, which includes $89 million to be offered through the fund and $2.5 million to support administration including staffing and access to specialist advice.
The Local Jobs Fund will run for two years or until it is fully committed.
The Investment Committee will provide advice and make recommendations to the Northern Territory (NT) Government in relation to each application.
The committee is made up of credentialed and experienced private sector representatives with strong backgrounds in investment banking, finance, legal and commercial negotiations.
The committee is:
Get the facilities memorandum:
Successful applicants will be required to complete detailed and binding commercial agreements including letters of offer, shareholder agreements and loan agreements. Examples of such documents are available by contacting the Local Jobs Fund team.
A measured approach to risk will be taken to ensure public monies are allocated appropriately and the fund’s capacity to achieve its economic development objectives is maximised.
Risk management and performance measurement will take into account the explicit concessions being provided by the NT Government to recipients. All of the fund’s products are approved on a matching basis. Proponents will need to demonstrate that there is, at minimum, an equivalent level of private capital being brought into the business or project.
The fund will use concessional financing to achieve economic outcomes (employment and economic growth) for the Territory. Therefore, any concessions afforded by the fund will need to be relative to the economic outcomes achieved.
The fund is expected to have a higher risk appetite for factors that are unique to investing in NT projects. This could include risks associated with:
The fund is expected to have a lower risk appetite for factors that are not unique to NT projects. This includes proponent capability and integrity and quality of the business case presented.
Funding caps will be applied to each of the products under the fund to ensure broad distribution of funds across products and diversification of project-specific risks. The distribution of funding may vary.
|Product||Fund amount||Minimum investment||Maximum investment|
|Business Investment Concessional Loans||$20 million||$100,000||$3 million|
|Equity Co-investments||$20 million||$100,000||$5 million|
|Capital Grants for transformational economic growth projects||$20 million||$1 million||$10 million|
|Priority Sector Collaborative Grants||$9 million||$100,000||$1 million|