You would be no doubt aware of the COVID 19 Support Grants from the recent late July SA lockdown.
As a business, have you checked your eligibility and applied for this assistance?
The South Australian Government has announced a July 2021 COVID-19 Business Support Grant Program to support thousands of South Australian small and medium-sized businesses that suffer a significant loss of income or have been forced to close as a result of the restrictions imposed from 20 July 2021.
Grants of $3,000 for employing businesses and $1,000 for non-employing businesses are available for eligible businesses whose turnover has declined by 30% or more as a result of the COVID‑19 health restrictions in the week commencing 20 July 2021.
To be eligible for the $3,000 grant a business must meet all criteria listed below, at the start of the restriction period of 12:01am Tuesday 20 July 2021:
- Be located within South Australia.
- Have an annual turnover of $75,000 or more in 2020-21 or 2019-20, and be registered for GST.
- Have a valid and active ABN (Australian Business Number).
- Must employ people in South Australia.
- Have an Australia-wide payroll of less than $10 million in the 2019-20 financial year.
- Experienced at least a 30 per cent reduction in turnover in the week of Tuesday 20 July 2021 – Monday 26 July 2021 (inclusive) (compared to the prior week) due to restricted trading conditions.
Applications for the Business Support Grant must be submitted by 11:59pm, 30 September 2021.
To be eligible for the $1,000 grant, non-employing businesses will be subject to the eligibility criteria outlined above, excluding the requirement to employ people.
COVID-19 Customer Relief from the Banks
The Australian Banking Association (ABA) has detailed further support for customers affected by continuing COVID-19 lockdowns or those recovering from recent lockdowns.
The national support package will be available to all small businesses and home loan customers significantly impacted by current lockdowns or recovering from recent lockdowns, irrespective of geography or industry.
On application, support includes:
- Business Banking Repayment Deferrals
- Up to 3-month repayment deferrals, with loan terms extended accordingly
- Offered to all small business customers (business lending less than $3m and a turnover of less than $5m), which includes up to 98% of small businesses
- Only for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank)
Everyday Banking Support
- Refunds of merchant terminal fees for up to 3 months
- Waiving of fees and notice periods on Cash Deposit and Farm Management Deposit accounts for up to 3 months
Home Loan Support
- Range of support measures, including deferrals on a month by month basis
- Available to both individual and business customers
The package is subject to re-authorisation by the ACCC which the ABA is urgently seeking.
Since 8th July 2021, when the Banks announced their COVID-19 relief package, the following information has been reported to the ABA:
- Nearly 14,000 new COVID-19 related hardship cases approved
- Nearly 300 small business loans deferred
- Just over 8,000 home loans deferred
While the majority of these have been in NSW, I would encourage SA businesses experiencing financial difficulty to talk to your bank on a path forward.