Canberra’s hard-pressed businesses will be able to apply for government grants from Thursday, the ACT Government announced on Tuesday.
Almost 10,000 local businesses could be eligible, and 8,000 businesses have already shown interest. A credit scheme to help small businesses recover will open in October.
“Both these programs are designed to provide financial support to eligible businesses impacted by COVID-19 public health measures,” said Business Minister Tara Cheyne.
For more information, visit the ACT Government’s economic support for business page.
COVID-19 Business Support Grants
The COVID-19 Business Support Grants will provide $10,000 to businesses with employees, and $4,000 to non-employing businesses for the three-week lockdown period.
Businesses must have an annual turnover of at least $75,000 (excluding GST) in either 2019–20 or 2020–21, and have suffered a decline in turnover of at least 30%. This is jointly funded by the ACT and Australian Governments.
Applications open at 9am on Thursday. Ms Cheyne urged all local businesses to look at guidelines and organise information to apply. Businesses should talk to their accountant if possible about their eligibility for the grants.
Approved businesses will receive a lump sum payment within 30 days of lodging their application.
The program is designed to be flexible and accommodate any extension of the lockdown, Ms Cheyne said. However, as the Commonwealth is funding half the program cost, the ACT would need to reach agreement with the Commonwealth before extending it.
Small Business Hardship Scheme
The COVID-19 Small Business Hardship Scheme will open in October (after this financial quarter). It will give eligible small businesses credits for payroll tax, utility charges, rates and other selected fees and charges up to a maximum of $10,000 per operator.
The scheme is for small businesses with an annual turnover between $30,000 and $10 million; to be eligible, the applicant must demonstrate a 30% or more loss of revenue from June quarter 2021 to September quarter 2021.
Detailed guidelines for the Small Business Hardship Scheme will be made available in the coming weeks. You can express your interest in the scheme online.
Other government support for business
“We understand this is a really difficult time for our local businesses, and they have a lot of questions,” Ms Cheyne said.
The ACT Government was working with business representatives – such as the Canberra Business Chamber, Canberra Women in Business, the Australian Hotels Association ACT, retail groups, and the tourism industry – to understand the impact of COVID-19 on local businesses and how the ACT Government can continue to respond, she said.
ACT Health is constantly reviewing the situation in the ACT, Ms Cheyne stated; as more is known about the outbreak, the ACT Government will consider whether the restrictions in place are commensurate with the risk.
“It may be possible to revisit the settings relating to non-essential business activities when the time is right.”
Accommodation businesses and local tourism operators can receive rebates on fixed water and sewage charges, as well as the Small Tourism Operator COVID Recovery payment of up to $15,000.
The government has waived a range of fees and charges for businesses, and paused all paid parking to assist essential workers and essential businesses.
The Canberra Business Advice and Support Service provides up to four hours of free specialist advice tailored to businesses facing financial stress. This is delivered by the Canberra Business Enterprise Centre, and is funded by the ACT Government.
The full range of ACT Government supports is on the Business Hub website.
Federal government loan scheme
Businesses turning over less than $250 million will be eligible for loans of up to $5 million under an expanded federal scheme.
Treasurer Josh Frydenberg on Wednesday announced small and medium sized firms would no longer be required to have received JobKeeper wage subsidies or affected by floods to access the program.
The government will guarantee up to 80 per cent of the loans, which will be available through participating lenders until the end of the year.
Repayment holidays of up to two years will be allowed.
Loans can be used for a broad range of business purposes, including supporting investment and refinancing pre-existing debt.
Mr Frydenberg said the scheme had dished out 70,000 loans worth $6 billion.
“We’re obviously seeking to give them the best possible interest rate, lower than what they otherwise may have found in the market,” he told the Nine Network.
“It would depend on the different lenders and the agreements that can be reached.”
The treasurer said small businesses were desperate with ongoing coronavirus lockdowns putting owners under extreme pressure.
“They’re despondent,” he said.
“Many people have their life savings on the line through their small businesses, and indeed in many cases their homes.”
With AAP
