Here is a summary of the stimulus package that supports businesses which I’ve been calling all my business clients this week to discuss how they can be eligible for it:
– Boosting cash flow for employers’ payments of up to $100,000 to eligible small and medium-sized businesses, and not-for-profits (NFPs) that employ people, with a minimum payment of $20,000.
– Temporary relief for financially distressed businesses by temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
– Increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
– Backing business investment by providing a time-limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions.
The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme will support up to $40 billion of lending to SMEs. The Government will provide eligible lenders with a guarantee for loans with the following terms:
– SMEs, including sole traders, with a turnover of up to $50 million;
– maximum total loan size of $250,000 per borrower;
– loans will be up to three years, with an initial six month repayment holiday; and
– unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
Feel free to contact me if you have any questions.