Two weeks after lockdown was announced, Canberra businesses affected by restrictions can now apply for support grants. Ten thousand ACT businesses could be eligible – but while it will give them much-needed support, the local business community is also frustrated by the delay.
Jointly funded by the ACT and Federal Governments, the Business Support Grants are open to businesses with an annual turnover of more than $75,000, and whose turnover has declined by 30% or more. Payment of $10,000 for employing businesses and $4,000 for non-employing businesses will be made in a lump sum on average within 30 days of correctly lodging an application, a government spokesperson said. Businesses can apply for the grants through the online ACT Government’s Business hub.
The Canberra Business Chamber welcomed the support; however, some of its member businesses were concerned payments could take a month from the date of application – “a potential wait of six weeks from the start of the lockdown to any cash support,” said president Graham Catt.
John Paul-Romano, Chairman of the Inner-South Business Council, said the government support came far too late.
He said many local businesses were frustrated the government did not have procedures in place “sooner than two weeks into one of the hardest lockdowns in Australia, or the world for that matter”. His Council, he said, had pleaded with the ACT Government months ago to be prepared to provide business support within days of a lockdown.
Instead, businesses were increasingly angry that support payments might not be paid until the end of September, and that (at the time of Mr Romano’s statement on Tuesday) there was no starting date for the COVID-19 Small Business Hardship Scheme. (This will start in October, the government said.)
“In contrast, the Federal Government made a clear timeframe known for the employee support payments,” Mr Romano said.
“The application process was simple, straightforward, and effective, with money being paid within 24 hours. On the other hand, the ACT Business program is convoluted and clearly far more complicated than the Commonwealth payments, a common frustration of many in the community.”
Canberra Liberals leader Elizabeth Lee said businesses were rightfully disappointed at the delay to critically necessary support payments, given the amount of time the ACT Government had to prepare before the lockdown.
“The ACT Government has been assuring the community for months that it would be ready and prepared in the event of a lockdown, and businesses are disappointed it has not resulted in timely support at this critical time,” she said.
Canberra businesses were also waiting for the ACT Government to reinstate the commercial tenancies’ directions from 2020 around how landlords should work with their tenants affected by lockdown, Mr Catt said.
Mr Romano agreed. “The ACT Government has also had a multitude of time to introduce rental protections, yet we still have no information, just a daily reminder that they are ‘finalising things’. In any event, these protections should be backdated to the beginning of the lockdown.
“A plea from business: Make it simple, make it effective, and make it quick, for the sake of our families, our economy, our landlords, our suppliers, our customers, and for the sake of our city,” he implored.
Johnathan Davis, Greens spokesperson for Business and the Night-Time Economy, encouraged struggling small businesses in Canberra to apply for the government funding. He was aware some small business owners had not been able to adapt to the pandemic.
“That’s why it is crucial that the ACT and Commonwealth governments’ COVID-19 business support grants hit the bank accounts of those small businesses as quickly as possible.”
The Canberra Business Advice and Support Service is available for any local business owners seeking free, specialised advice on their circumstances, the ACT Government advised.
Any Canberran who cannot earn an income during the lockdown could access payments of $200 to $750 through the Commonwealth Government’s COVID-19 Disaster Payment administered through Services Australia.
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