About Funding

 

Objective

Social Innovation and Entrepreneurship Development Fund (SIE Fund) was established by the Commission on Poverty of the Hong Kong Special Administrative Region (HKSAR) Government in 2012 to stimulate cross-sector collaboration, sharing learning and experience, guiding resources to groom and coach entrepreneurs, incubating and implementing new ideas, with the expectation that some of these will lead to new, sustainable businesses that help tackle poverty and social exclusion in the community.

Target

As one of the Intermediaries of the SIE Fund, the Hong Kong Council of Social Service (HKCSS) launches the Impact Incubator, an one-stop support platform to incubate social entrepreneurs and innovative ideas. We provide holistic support to social entrepreneurs through the 5Is incubation process.

Impact Incubator is a R&D Lab for entrepreneurial and innovative ideas with social purposes, we support:

  • Social entrepreneur who attempts to tackle poverty problem through a sustainable business solution
  • Social intra-preneur from NGO or private sector, who mobilizes internal resources forsocial good
  • Social innovator who adopts creative approach to address social needs

Funding Period

Project funded under the SIE Fund shall be completed in 3 years or less.

Amount of Grant

In general, the maximum amount of SIE Fund for Start-up and Scale-up project is HK$1 million and HK$100,000 for prototype*. For Start-up and Scale-up projects, applicant will be required to solicit at least 50% of the total project budget as matching fund, may be in cash or in kind from any parties other than the Government source of funding.

*If your budget exceeds the concerned amount, please contact Impact Incubator

The approved grant is the sum of capital grant and operating grant, where:

  •  - Capital grant is amount approved for acquiring assets (i.e. capital expenditure)
  •  - Operating grant is amount approved for financing the operating deficit

 

Budget

Only expenditure incurred exclusively for the project can be covered in the budget, for example –

 

1)      Capital expenditure

  • Cost of procuring equipment

2)      Operating deficit (Operating expenses in excess of revenue)

  • Salary (including employer’s contribution to the Mandatory Provident Fund MPF)
  • Expenses for consumables
  • External consultancy fees
  • Production and promotion cost of project deliverables
  • External audit fee
  • Patent registration fee
  • Rental, renovation and utilities
  • Travelling fee (shall not exceed 5% of the total budgeted expenditure)
  • Central administrative overhead* (shall not exceed 5% of the budget)

* Charges levied by a party (e.g. parent company) for provision of central support / administrative services (e.g. management fees)

 

Payment of Grant

The applicant will be required to keep a Designated Bank Account to receive the grant and matching fund. Grant will be disbursed in multiple installments for projects with approved grant amount within funding tier 2 and 3 or implementation period exceeding 1 year. Initial[1], interim[2] and last installments[3] will be disbursed at intervals as specified in the payment schedule of the agreement[4].

For projects with approved grant at funding tier 1, payment of grant will be on one-off basis with no less than 10% reserved as retention money to be paid upon completion of project.

 

[1] One-off payment to kick start project

[2] Paid upon completion of project milestone

[3] Not less than 10% of the approved grant will be reserved as retention money, to be released after the end of the funding period upon completion of all project milestones.

[4] Each instalment might be adjusted based on the latest spending position. The unspent grant, if any, may need to be returned.

 

Terms and Conditions for Funding Support

The Grantee will be required to sign an agreement with the Trustee of the SIE Fund and comply with all the terms and conditions laid down in the agreement, guideline and all instructions and correspondences issued by HKCSS and SIE Fund from time to time in respect of the project.

 

The Grantee will be required to appoint a project management team which will be responsible for overseeing the implementation of the project, monitoring the proper use of funds in accordance with the approved budget, exercising economy in the use of funds, liaising with HKCSS and attend meeting and / or events related to the project when needed.

 

The Grantee will be required to submit Progress / Final Reports, Evaluation Report and Financial Reports (audited, where applicable) according to the schedules of the agreement. HKCSS and SIE Fund have the right to access to any information related to the projects. 

 

For start-up / scale-up projects, not less than 65% of the distributable profits arising from the Project have to be reinvested in the business for the funding period and 3 years thereafter. Under exceptional cases, grantee may seek approval from the SIE Fund Task Force for an exemption.  The Grantee shall not without obtaining prior written consent sell / transfer assets funded by the grant and / or matching fund and change the ownership or control of the Grantee.

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