Three Government initiatives to boost your business’ cash flow in the midst of COVID-19
Many businesses are currently trying to access the $130 billion JobKeeper Payment and other support measures offered by the various levels of government and financial institutions to help ease the pain being caused by COVID-19.
The difficulty is often understanding what your business may be eligible for, how you can apply and what your obligations may be.
For example, to access the JobKeeper payment for your employees, you will need to pay each employee a minimum of $1500 each per fortnight. If your income has been significantly reduced due to Government-imposed shutdowns, or a retail in your customer or client base, this may seem almost impossible to fund.
Combining access to various stimulus payments, grants and support packages may help generate cash flow to meet these requirements for JobKeeper Payment.
Three possible sources of cash flow to achieve this include:
- The Victoria Government Business Support Fund grant of $10,000 for small employers impacted by the restrictions to businesses imposed by State Government regulations and is available now – contact us to find out what is necessary to qualify and apply
- The Boosting Cash Flow for Employers stimulus from the Federal Government. This will provide savings to employers of between $20,000 and $100,000 over the next six months. This is available from 28 April 2020 – again, if you aren’t sure if or how this will apply to your business, contact us
- Assistance from financial institutions in the form of loan repayment deferrals and/or unsecured loans of up to $250,000 which are 50% guaranteed by the Federal Government. This assistance is negotiated directly with your bank, but let us know if you would like help to apply
This is not an exhaustive list of the assistance available. Other specific programs exist and more channels of support are emerging each day from the different levels of Government.
For example, various State Governments have rolled out plans for commercial tenancy arrangements, including the deferral or waiver of rent in specific circumstances. This is primarily aimed at businesses with less than $50 million annual turnover that have been impacted by COVID-19.
Once again, these are designed to be putting money back into the businesses that are keeping the economy turning, and can be implemented to preserve cash flow until the JobKeeper Payment begins flowing into the economy.
Whilst JobKeeper Payment will not be a cure for all businesses, it is the most generous support being offered at present and will help subsidise the operations of many businesses impacted by COVID-19, giving them the greatest chance of reemerging on the other side of the pandemic.
Also, even though there is a long list of various support initiatives out there, many business owners are still unsure what steps they need to take to help their business navigate these uncertain times.
If you need guidance on what is available for your business now, and into the future, contact your Advisor at Sinclair Wilson. We will systematically work through the options available to you, to ensure you and your business get what you deserve.