We’ve been closely covering the range of stimulus measures available to our small business clients in recent weeks. Here are a few of the most recently announced:
$10,000 cash grants for NSW small business
NSW government has announced $10,000 grants to be available to eligible small businesses to help keep them afloat during this crisis. To be eligible, your business must:
- Have between 1-19 employees and a turnover of more than $75,000;
- A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
- Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
- Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
- Have experienced at least 75% decline in turnover compared to the same two-week period in 2019, as a result of COVID-19
- Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
- Provide appropriate documentation upon application.
Applications are to be made via Service NSW and applications close on 1 June 2020.
Australia Council Resilience Fund
The Australia Council for the Arts has announced a $5 million Resilience Fund for artists and arts organisations to support their livelihoods, practice and operations during the COVID-19 pandemic and will be split into three streams:
- Survive – small grants for individuals, groups and organisations to offset or recoup financial losses due to cancelled activity
- Adapt – grants for individuals, groups and organisations to adapt their practice and explore new operating models
- Create – grants for individuals, groups and organisations to continue to create artistic work and develop creative responses in a time of disruption.
Organisations that currently receive multi-year funding from the Australia Council are not eligible to apply. Applications for the Resilience Fund open online on 3 April 2020.
Export Market Development Grant (EMDG)
Following submissions to the Minister for Trade for extra support for exporters there has been $50 million in additional funding for the Export Grant Scheme announced by the federal government. This means that:
- For clients who are entitled to more than $40,000, their second tranche payment will be paid in full on an expedited basis.
- Claims not yet assessed will be paid in full.
- The processing of outstanding claims will be expedited.
Good news to anyone looking to generate export sales. If you need to know more about the EMDG scheme, we recommend speaking with Warren Cross at Export Incentives.
Thinking of a (mortgage) holiday?
A few weeks back the banks announced that loan customers facing financial difficulties could apply for a ‘repayment holiday’ from their loan for up to six months. For anyone struggling financially at the moment this might seem like a great idea, but it’s important to understand it’s a holiday from making repayments, not from being charged interest. This means that any interest you would have paid over the six month period will simply be added on top of your total loan amount meaning that future repayments will be increased as a result. Something to consider before signing up.