5 resources that support local business during COVID-19
COVID-19 seemed almost like a distant memory. But if there’s one thing we know for sure, it’s that this virus is totally unpredictable. With the recent outbreak in Greater Sydney and the resulting lockdown measures across several parts of the country, we all need to support local business during this latest crisis.
If you are a small business owner whose business has been impacted by COVID-19, you know that every support from the community and government counts. At Lumi we are a small business ourselves. While it’s our mission to empower small businesses to reach their goals through business funding, we also rely on the support from those same businesses who invest in their growth.
Here are 5 resources that support local business in NSW:
1. Government Small Business Support Initiatives
The NSW government has launched several initiatives to support local business during this COVID-19 lockdown. Most of these initiatives apply to local businesses whose revenue has decreased by a minimum of 30% and whose annual turnover is less than the specified amount.
First there are the COVID-19 Business Grants, which is a one-off payment between $7,500 and $15,000 depending on the business’s decline in revenue.
Additionally, the NSW government also introduced JobSaver, a fortnightly payment helping businesses to keep their headcount through a cash flow injection. Minimum and maximum weekly payments apply.
Then there are the COVID-19 Micro Business Grants, a $1,500 fortnightly payment for businesses with a turnover between $30,000 and $75,000 and a decrease in revenue of 30% or more.
2. Payroll tax benefits to support local businesses in NSW
Businesses have the option to defer their payment for the monthly return periods of July and August 2021 until October 2021. Any NSW registered business that pays payroll tax will be eligible for the payroll tax deferral.
Furthermore, the local government also introduced a 25% payroll tax reduction for the 2021-22 payroll tax period. This applies to businesses with a decrease in turnover of minimum 30%. It covers tax reduction on wages up to $10 million.
In case you are in further need of support, you can also directly reach out to the NSW government here.
3. Commercial property protection for tenants
Similar to the measures during the 2020 lockdown, the government continues to protect impacted tenants of commercial or retail premises. Based on this, landlords cannot evict their commercial tenants if they have been impacted by COVID-19 without undergoing mediation first. There are a few criteria that the business must meet, which you can read about here.
On the other hand, landlords, who lease their premises to commercial tenants who are in financial hardship, might be eligible for a land tax concession in case they provided a rent reduction to their commercial tenants. Find out more about the land tax concession for landlords here.
To get an overview of the changes to commercial leasing, have a look at the government’s summary.
What are the business support initiatives across other states?
If you are a business owner impacted by COVID-19 outside of NSW, check out the below links to understand what support is available in your state:
- Victoria: Click here.
- South Australia: Click here.
- Queensland: Click here.
- Western Australia: Click here.
- Tasmania: Click here.
- Northern Territory: Click here.
- Australian Capital Territory: Click here.
4. Financial hardship relief for small businesses
In case that you find yourself in financial hardship with your business but still have liabilities with lenders or suppliers, it’s important to keep an open conversation with them.
For instance, if you have a business loan with a lender but are unable to make your repayments, get in touch with them early and work out a plan of attack together. A supportive lender will always try their best to support local business throughout this crisis. At the end of the day, it’s also in their interest that the business recovers and can meet their loan obligations.
A flexible lender will try to accommodate for your business’s circumstances to the best of their ability. For example, they might offer you solutions such as a temporary payment holiday, during which you can pause your loan repayments for a specific period of time. Note that each lender has different options and what they can ultimately offer you strongly depends on your business’s credit credentials. There is no one size fits all solution but you can always be proactive and have a conversation with your lender.
5. Business funding to seize opportunity
Is your business one of the lucky ones that is actually “benefiting” from the pandemic? For example, you might have digitised your business offering and can therefore reach additional customers that you weren’t able to reach before. Or you might have introduced a new product that solves a consumer problem, which emerged as a result of the pandemic. In this case your business might actually be on the growth track. In order to keep up with the momentum, you might be considering applying for additional business funding.
If that’s the case, check out our secured and unsecured business funding solutions at Lumi.
We currently offer:
Small Business Term Loans up to $150,000 Unsecured
Business Line of Credit up to $150,000 Unsecured
To apply, you can complete our easy 5-minute online business loan application here.
All you need to get started are three things:
A valid ABN/ACN
Business operating for at least 6 months
Minimum monthly revenue of $5K
In case you’re seeking inspiration on how COVID-19 can be a catalyst for business innovation, check out our blog article here. Or if you want to find out about how funding can revive your business in 2021, you might want to read our article on that topic here.
Finally, please feel free to reach out to our team if you’d like to discuss potential financial solutions for your business. You can reach us via email at email@example.com or phone on 1300 00 5864.
Here to support local business.
Your Lumi team