Independent fashion designers have expressed relief at the federal government's decision to retain a program which opens up $2.5 million worth of annual grants.
Treasury officials have confirmed the Textile, Clothing and Footwear (TCF) Small Business Program would continue in its current format, despite fears the financial crisis would impact on funding levels for industry.
Launched over 2006/07, the competitive scheme meant businesses with less than 20 employees could apply for grants of up to $50,000 for eligible projects. Successful applicants have included designer labels Ginger & Smart, Kirrily Johnston, Nicola Finetti, Carl Kapp, Nina Maya, Therese Rawsthorne and Anna Thomas.
Womenswear designer Melanie Cutfield, who secured $46,000 in the last round of grants in 2007/08, said the program had made a "huge" difference to the growth of her business. Cutfield used the grant to invest in a software system which allowed her to monitor all stages of the manufacturing, wholesale and commercial process.
She had applied for another grant this year to develop e-commerce and direct marketing opportunities.
"It means you can implement projects you wouldn't otherwise have the money for," Cutfield said. "Having this new software for instance means I can focus on growing our wholesale orders rather than being bogged down with [back-end] operations."
Womenswear designer Sophie Toohey was also successful in securing over $40,000 in funding towards a new software solution for her business last year. Her high-end label Mr Rose currently sells through a dedicated online store and a flagship boutique in Sydney's Paddington district.
If successful, Toohey hoped to use the next round of funding grants to establish a wholesale arm.
"Small businesses don't often get a lot of support so a program like this is really important," she said. "I've found that my end of the market doesn't really feel the benefits of something like the stimulus package - customers don't flood through our doors like they do with bigger retailers."
Other small business initiatives included in the federal budget were increased tax breaks on capital asset spending, $10 million towards supporting online ventures and another $10 million for a support line.
Successful applicants for Round Four of the TCF Small Business Program were expected to be announced next month.