Are you a Business Owner and struggling to keep your head above water and also grappling to understand who and how the latest Federal Government relief packages mean for you – well, we’re here to help and here’s a brief snapshot for you.
First of all, What is on offer?
Small and medium-sized businesses will get up to $100,000 in cash payments in the government’s second stage of emergency assistance, to cushion businesses and individuals as we battle CVOID-19.
This package will bring to a massive $189 billion the official injection of cash and credit to prop up businesses, protect jobs where possible and assist those whose jobs can’t be saved as well as welfare recipients and low income earners.
The second stage package includes, apart from the wage subsidy, a loans guarantee to help keep enterprises operating. It also contains extensive income support and other measures.
The tax free cash payment of up to $100,000 will be available to businesses with turnovers below $50 million and also to eligible not-for-profit charities.
Under the latest measure, a business will get a payment equal to 100% of the tax it withholds from its workers’ wages, up to a maximum of $100,000.
Eligible businesses will be able to get a minimum $20,000 even if they are not required to withhold tax.
The government estimates about 690,000 businesses, employing about 7.8 million people, will he helped, as well as some 30,000 not-for-profit enterprises.
The measure is front-end loaded, to get the assistance flowing as soon as possible.
The federal government will guarantee 50% through the participating bank of an eligible loan to a small or medium-sized business hit by the impact of the virus. The $20 billion government guarantee will be able to support lending of $40 billion to these enterprises.
Loans will be used for working capital and be unsecured. The guarantee will cover loans granted within six months, from April 1. It will apply to new or existing customers of banks and non-bank lenders.
Lenders will not be charged a fee for accessing the scheme, and it will be repayment-free for six months. The maximum loan will be $250,000, for a term of up to three years.
Secondly, well which one applies to you and here’s how to access the funds
Please don’t hesitate to reach out to us if you need help with any Management or HR issues. We are here to help you.
Check out our Resources to help you manage the CVOID-19 Pandemic Time at these sites, they are free resources to help you. And we are here to talk to you anytime.