Small Business Grants and Loans Essential in Recovering Losses

Many people in Australia had experienced the effects of the COVID pandemic these past months, physically, emotionally and economically. Small business owners are one of these people greatly affected by the pandemic.

Thus, the Australian Government is giving grants and loans for eligible small business owners and non-profit organisations. Below are three cash grants from the Australian Government.

$3000 Recovery Grants

This recovery grant is available to eligible small business and non-profit organisations. Application is until 16 August 2020. See if your business or organisation is qualified.

  • The applicant must be a small business or non-profit organisation as of 01 March.
  • Applicant must possess an Australian Business Number in the NSW registry with updated info.
  • The applicant employs less than 20 full-time staff with reported payroll tax below $900,000.
  • The applicant must incur reopening expenses from 01 July onwards.
  • The applicant must have experienced a decline of at least 30% turnover from March to July.
  • The applicant must have more than $75000 annual turnover.

$10,000 Grants

This grant is available for small businesses that incur losses and are unable to pay expenses due to the COVID-19 pandemic effects. The deadline for application is 30 June 2020. Eligible applicants will receive the payment within ten business days.

Cash Flow Boosts

Aside from the $3,000 and $10,000 grants and loans, small businesses and non-profit organisations can also receive cash flow boosts from the Australian Government. This boost amounts $20,000 to $100,000. Below are the eligibility requirements:

  • The applicant must have a turnover of less than $50M annually.
  • Applicants must have employees with paid salaries, director fees and other compensation-related expenses.
  • The applicant must have an ABN as of or on 12 March 2020.
  • Applicant must have lodged an income tax or GST return with applicable years 2018 and 2019 before 12 March 2020.

Assistance Finder

If you aren’t sure if you’re eligible for any assistance from the Government, you can use the COVID-19 assistance finder offered by Service NSW. This assistance finder is an online tool that will help you find the best options for financial support.

Conclusion

These grants and loans are available to eligible business owners, especially in the small to medium-sized sectors. If you have received the $10,000 grant, you can still apply for the $3,000 grant. Also, you can use the assistance finder if you aren’t sure about your eligibility.

Alternatively, you can contact our accountants and tax experts at Sphere Accountants and Advisors to help you with the application. We also have other services such as maintenance of financial records for taxation, budgeting and decision-making purposes.

 

Reference: https://www.nsw.gov.au/covid-19/businesses-and-employment/financial-assistance/grants-and-loans