NSW Government $10,000 grant announced for small business

Posted On April 3, 2020

Since this article was originally posted applications for this grant are now open. To access the application through Service NSW you will need to click on this link https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-support-grant On this site there is more information on Eligibility and How to apply.

An interesting change is that they were originally saying that you would need to demonstrate a reduction in turnover of 66% but the actual criteria is:

* have experienced at least 75% decline in turnover compared to the same two-week period in 2019, as a result of COVID-19 (for businesses that have been in operation for less than 12 months, refer to the guidelines

This seems harsher than the original 66%, but the allowance for a comparable 2 week period in 2019 does give some scope for flexibility – for example the Easter & ANZAC weekends which would have been large for many tourism and hospitality businesses were the 19th -26th April 2019, and with the current lockdown rules they are surely not going to be anywhere near as big this year. Anyway, the rest of the article is below.

The NSW government will launch the largest assistance package for small business in its history, offering $750 million in grants for up to 75,000 businesses hamstrung by the COVID-19 restrictions.

Treasurer Dominic Perrottet will announce on Friday that businesses across the state whose revenues have taken a significant hit will receive grants of up to $10,000 each.

Mr Perrottet will say the latest support is designed to provide fast relief for those not eligible for other assistance.

“This is real, rapid, relief for tens of thousands of businesses and it will help ensure many businesses that are not eligible for payroll tax waivers and deferrals can live to trade another day.”

“We have the structures in place after the bushfires, and expect to see this money rolling out the door shortly,” Mr Perrottet will say.

The new fund is based on the successful scheme rolled out during the recent bushfire crisis, in which the NSW government provided up to $42 million to up to 4200 businesses.

“Many local cafes, restaurants, corner shops, gyms and small accommodation providers will be eligible to apply.”

Eligible businesses will need to have between 1 and 19 employees, a turnover of more than $75,000, and a payroll below the NSW government 2019-20 payroll tax threshold of $900,000.

The funds must be used for funding unavoidable business costs such as utilities, overheads, legal costs and financial advice. Service NSW will administer the scheme, which will open within a fortnight and remain open until June 1.

It is understood their revenues would need to have taken a hit of up to 66 per cent – a much higher benchmark than the 30 per cent drop the federal government requires from businesses seeking assistance through the $130 billion JobKeeper policy.

NSW Premier Gladys Berejiklian expects the government will “make the application process easy” to ensure small businesses could receive some cash flow as soon as possible.