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South Australian small businesses will soon be offered up to $10,000 to help cover ongoing expenses as the state government looks to offset coronavirus effects on the economy.
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SA businesses set for $10k cash grant
14 April 2020
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9 minute read
One-off grants of up to $10,000 will soon be available for an estimated 19,000 eligible businesses to help cover the “ongoing or outstanding” operating costs including rent, power bills, supplier and raw material costs, and other fees.
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Announced by SA Premier Steven Marshall, the grant will come at a cost of $190 million from the state’s $650 million Jobs Rescue Package to assist small businesses and not-for-profits that have been impacted by the coronavirus.
According to the SA government, the modelling for this grant was based off similar grants already seen in New South Wales and Victoria.
To be eligible, businesses must have been subject to closure or be “highly impacted” by the coronavirus-related restrictions, with businesses eligible for JobKeeper payments deemed to be highly impacted.
Businesses will be eligible for a grant if they employ people in SA, have a turnover greater than $75,000, have a payroll of less than $1.5 million and are not entitled to a payroll tax waiver under support measures already introduced by the state government.
Businesses will also need an ABN and to have been carrying on the operation of a business on 1 March 2020.
Businesses will need to apply for a grant by 1 June 2020.
The state government has also specified the funds need to be used to “support activities related to the operation of the business”.
Premier Marshall said the emergency financial relief was part of the state government’s efforts 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,” Mr Marshall said.
“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.”
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