As the effects of COVID and rolling lockdowns are felt across the country (this time with no JobKeeper), here we look at the grants, schemes and hardship arrangements available to small businesses and individuals, should you need some support.
Home loans and business loans
If you’re a small businesses impacted by COVID with a good conduct on your business loans, you may be eligible for a repayment deferrals of up to three months.
For individual borrowers, lenders are providing a range of support measures, including month-by-month loan deferrals.
Since July 8, more than 14,500 home loan repayments have been deferred.
“Support is available to all small businesses and home loan customers significantly impacted by current lockdowns or recovering from recent lockdowns, irrespective of geography or industry,” says
Anna Bligh, CEO of the CEO of the Australian Banking Association.
Instead of deferring loan repayments as your first option, please talk to us first – as there may be a few other strategies you could benefit from.
Grants and Payments for Businesses
Each state and territory has their own grants and schemes available for businesses and individuals. Since the situation is evolving, we suggest you double-check the requirements in your state to check whether you’re eligible for any other payments not listed below.
NSW: If you’re a business, sole trader or not-for-profit organisation in NSW and you’ve been impacted by the recent COVID-19 restrictions, you may be eligible for a one-off grant of $7,500, $10,500 or $15,000. Find out more here.
Victoria: Victoria is offering varying grants for business.
The Small Business COVID Hardship Fund provides $10,000 grants for eligible SMEs experiencing a reduction in turnover of at least 70%. And the Business Costs Assistance Program Round Two is providing grants of $4800 to eligible businesses in specific industries. Find out more here.
Queensland: COVID-impacted Queensland businesses can apply to receive a grant ranging from $10,000 to $30,000, based on the size of their annual payroll. For non-employing sole traders, grants of $1,000 are also available.
Western Australia: The Small Business Lockdown Assistance Grant: Round Two provides $3000 cash flow support to small businesses in industry sectors most impacted by the recent lockdown.
South Australia: Businesses forced to close as a result of the SA’s lockdown may be eligible for a $3,000 emergency cash grant, whilst sole traders may be eligible for $1000. Find out more here.
ACT: And if you’re an ACT business which has experienced a turnover decline of at least 30% as a result of the recent COVID-19 lockdown, you may be eligible for COVID-19 Business Support Grants up to $10,000 (for employing businesses) and up to $4,000 for non-employing businesses. Find out more here.
Payments For Individuals
The Federal Government’s COVID-19 Disaster Payment is a lump sum payment to help workers unable to earn income due to a COVID-19 state public health order. This may involve a lockdown, hotspot or movement restrictions. The amount of the payment depends on your location and circumstances and is available to eligible ACT, NSW, QLD, SA and Victoria residents.
Support for Tenants and Landlords
NSW landlords who reduce rents for pandemic affected tenants will be able to access up to $3,000 per tenancy agreement.
For landlords to be eligible, their tenant’s take-home weekly income must have fallen by 25% or more. The tenant must also continue to pay at least 25% of the rent.
Get in touch today
There are some other ways you can reduce your business or home loan repayments each month which don’t involve deferring your repayments. (In fact, these strategies could benefit any homeowner right now):
- Book in for a home loan review (we may be able to secure some additional discretionary pricing)
- Access funds you’ve built up in redraw
- Ensure your offset account is working properly/ rely on cash in offset to help fund repayments
- Switch to a fixed rate loan
- Refinance to a lender/ loan with a cheaper rate
- Consolidate your personal debt
If your household is one of the many doing it tough again, please reach out – we’re ready to assist you through 2021 and beyond, in any way we can.
