Tens of thousands of small businesses that have suffered loss of income or been forced to close due to coronavirus-related restrictions, will be offered a one-off $10,000 emergency cash grant from the government to further support them through the crisis.
The major investment – funded from the state government’s $650 m Jobs Rescue Package – will assist an estimated 19,000 small businesses and not-for-profits including eligible sporting and community organisations across the state, from gyms, hairdressers and beauty and nail salons to restaurants, cafes and cellar doors, at a total cost of approximately $190 m.
The cash grants will be available to help cover a business’ ongoing or outstanding operating costs, such as rent, power bills, supplier and raw materials costs and other fees.
Premier Steven Marshall said the emergency financial relief was part of the state government’s strong plan to support South Australians through the ‘greatest economic challenge of our time’.
“Small businesses are the lifeblood of our community and underpin our state’s economy and we will do everything in our power to ensure they have immediate support so they have the best chance of getting through to the other side,” said Premier Marshall.
“That’s why we are offering emergency cash grants of $10,000 to local small businesses who have had their earnings significantly impacted by the coronavirus or been forced to close as a result of the necessary trade, travel and social gathering restrictions imposed to help limit its spread.
“We know this has been – and continues to be – an incredibly difficult time for employers and their staff, many of whom have worked tirelessly for years to build businesses and a loyal customer base.
“However, we hope this immediate funding shot-in-the-arm will go some way towards easing their financial distress, by improving cash flow and helping cover a range of costs, whether that be commercial rent and utility bills or supplier fees for raw materials.”
Modelled on similar schemes in New South Wales and Victoria, the SA grants apply to those businesses with a payroll of less than $1.5 million, and not entitled to a payroll tax waiver under COVID-19 support measures already introduced by the state government (for businesses with payrolls of up to $4m).
It will also work in tandem with the federal government’s significant stimulus measures – including the $1500-a-fortnight JobKeeper wage subsidy program - and be made available to local small businesses that employ people in SA and have a turnover of more than $75,000.
For more information* and to register your interest businesses are urged to visit Growing South Australia on the SA Treasury website.
Applications for the grant will open shortly and be available until 1 June 2020.
*To be eligible for the one-off $10,000 emergency cash grants, a business must:
- Employ people in South Australia
- Have turnover of more than $75,000
- Have payroll of less than $1.5 million, and not entitled to a payroll tax waiver under COVID-19 support measures introduced by the state government
- Have an ABN and were carrying on the operation of a business in SA on 1 March, 2020
- Have been subject to closure or highly impacted by COVID-19 related restrictions^
- Use the funds to support activities related to the operation of the business
- Apply by June 1, 2020.
^Businesses eligible for the Commonwealth JobKeeper payment will be deemed to be highly impacted by COVID-19 restrictions.
NB: If a business has received any SA Government grants provided to address COVID-19 related business impacts, these payments will be deducted from the $10,000 grant.