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It’s Time To Think About Recovery!

The COVID-19 coronavirus pandemic is having unprecedented effects on small business finances causing stress to many business owners. 

How aware are you of the different Covid recovery grants, programs and loans that you may be eligible for? 

With Job Keeper now finished, many businesses may be feeling the pressure and be on the brink of closure.  

In response to this, State and Federal Governments have announced a raft of new economic recovery packages that your business may be eligible for.  If you think you may be eligible or if you need support to find out, the team at Entire Bookkeepers is just a phone call or email away.

Below is a summary of some of the current support packages that are available as of 29th April 2021. 

On 11 March 2021, the Federal Government announced the SME Recovery Loan Scheme, which will come into effect on 1st April 2021 and operate until 31st December 2021..ARE YOU ELIGIBLE?

1. SME Recovery Loan Scheme
From 1 April 2021 until 31 December 2021, eligible businesses will be able to negotiate a loan from a Participating Lender under the following terms under the Recovery Loan Scheme:
  • The Government guarantee will be 80% of the loan amount.
  • Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
  • Loans can be used for a broad range of business purposes, including to support investment. Loans may be used to refinance any pre-existing debt of an eligible borrower, including those from the SME Guarantee Scheme.
  • Borrowers can access up to $5 million in total, in addition to the Phase 1 and Phase 2 loan limits.
  • Loans are for terms of up to 10 years, with an optional repayment holiday period.
    Loans can be either unsecured or secured (excluding residential property).
  • The interest rate on loans will be determined by lenders but will be capped at around 7.5%, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.

Loans issued under the Scheme can be used to refinance existing loans or for a broad range of businesses purposes (including to support investment) but cannot be used to:

  • purchase residential property;

  • purchase financial products;

  • lend to an associated entity; or

  • lease, rent, hire or hire purchase existing assets that are more than halfway into their effective life.

2. Small Business COVID-19 Adaption Grant
Program – Round 2 Regional QLD Only
The Small Business COVID-19 Adaption Grant forms part of the Queensland Government’s Workers Assistance Package, which aims to assist employees and businesses who have lost their jobs or incomes as a result of the COVID-19 pandemic.
The grant is aimed at supporting small and micro businesses that employ Queenslanders and who may not be eligible for the Queensland Government’s 2019–20 refunds and waiving of payroll tax, which applies to businesses with wages bills of $1.3 million or above.
The available grant amount is from a minimum of $2,000 up to a maximum of $10,000 per eligible small or micro business.

To be eligible, the business must:
  • have been subject to closure or otherwise highly impacted by the shutdown restrictions announced by Queensland’s Chief Health Officer on and since 23 March 2020;
  • demonstrate that business revenue has experienced a significant decline since 23 March 2020 over a minimum one-month period due to the onset and management of COVID 19;
  • employ staff and have fewer than 20 employees at the time of applying for the grant (these employees should be in addition to the business owners and be employed on the
    business’s payroll);
  • have a valid Australian Business Number (ABN) active as of 23 March 2020;
  • be registered for GST;
  • have a Queensland headquarters;
  • have an annual turnover over $75,000 for the 2018-19 or 2019-20 financial year or provide financial records that indicate that this will be met for recently started small businesses;
  • have a payroll of less than $1.3 million; and
  • not be insolvent or have owners/directors that are undischarged bankrupt.

Regional Queensland is any area of Queensland that is not:

  • Brisbane
  • Ipswich
  • Gold Coast
  • Lockyer Valley
  • Logan
  • Moreton Bay
  • Noosa
  • Redlands
  • Scenic Rim
  • Somerset
  • Sunshine Coast
  • Toowoomba
3. Instant asset write-off
The instant asset write-off eligibility criteria and threshold have changed over time.

The threshold amount for each asset is now $150,000 (up from $30,000) and eligibility extends to businesses with an aggregated turnover of less than $500 million (up from $50 million).

From the 6th October 2020 until 30th June 2022, temporary full expensing allows a deduction for:

  • the business portion of the cost of new eligible depreciating assets for businesses with an aggregated turnover under $5 billion or for corporate tax entities that satisfy the alternative test
  • the business portion of the cost of eligible second-hand assets for businesses with an aggregated turnover under $50 million
  • the balance of a small business pool at the end of each income year in this period for businesses with an aggregated turnover under $10 million.
4. Boosting Apprenticeship Commencements wage subsidy
Through the subsidy, any business or Group Training Organisation that engages an Australian Apprentice between 5th October 2020 and 30th September 2021 may be eligible for a subsidy of 50% of wages paid to a new or recommencing apprentice or trainee for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.
5. Upcoming Grants Programs
The QLD Government have announced three new grant programs for small businesses; the Business Basics, Business Boost and Business Growth Fund grants will target specific groups of small businesses.
  • Business Basics grants of up to $5,000 each will support new and emerging businesses to increase core capabilities and adopt current best practice. Applications will open on May 31, 2021.
  • Business Boost grants of up to $15,000 will help small businesses to improve their efficiency and productivity through organisational development and upgrades through automated software and CRM systems. Grants can be used for website development and upgrades, strategic marketing, training and coaching, advisory services and planning for business continuity and succession. Applications will open late July 2021.
  • Business Growth Fund grants of up to $50,000 will allow businesses to buy highly specialised equipment to seize and accelerate growth opportunities. Applications will open May 11, 2021, with Guidelines available from 1 May.
Business leaders do not have to go it alone when it comes to understanding which loans, programs, and grants they may be eligible for.  Entire Bookkeepers have spent a lot of time learning and researching Government support programs and would be happy to help you understand what you may be eligible for during our free 30 min discovery session that you can book with our team here.

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