Help for Small Businesses to Recover from COVID

Everyday we see the effects of COVID-19 restrictions onsmall businesses. While our team do what they can to help  local small businesses  survive the current COVID-19 restrictions andbusiness downturn,  unfortunately somefinancial challenges do not have a legal solution.

We are aware that both the federal and state governmentscontinue to announce ways of assisting small businesses to weather the currentstorm. The latest support package is the Queensland Government’s Small BusinessCOVID-19 Adaption Grant Program. Whilst you are able to tap into JobKeeper toassist you to keep your staff and hopefully to continue some form of tradingthrough the current restrictions, this new grant may assist you to rebuild thebusiness as we start to move out of the COVID-19 restrictions.

Help for Queensland smallbusinesses to recover form COVID-19 effects

As part of the Queensland Government’s Economic RecoveryStrategy the Small Business COVID-19 Adaption Grant Program has been introducedto assist businesses with fewer than 20 employees, recover from the impact ofCOVID-19 and regenerate their business.

The program opened on 19 May 2020 and in the first day 903applications were submitted, requesting to draw on 9% of the funds available. Thereis a limited pool of funds and the funds will be allocated on a ‘first come,first served’ basis.

If you are not successful in this funding round, there areother state government grants available that you might be eligible for. You canfind more about the available grants at https://www.business.qld.gov.au/starting-business/advice-support/grants/schedule

Eligibility criteria

To be eligible, a business must:

• havebeen subject to closure or otherwise highly impacted by current shutdownrestrictions announced by Queensland's Chief Health Officer on 23 March 2020;
• demonstratethat business revenue has been significantly impacted since 23 March 2020 overa minimum 1-month period due to the onset and management of COVID-19;
• employstaff and have fewer than 20 employees at the time of applying for the grant;
• have avalid Australian Business Number (ABN) active as at 23 March 2020;
• beregistered for GST;
• have aQueensland headquarters;
• have anannual turnover over $75,000 for the last financial year;
• have apayroll of less than $1.3 million; and
• not beinsolvent or have owners/directors that are an undischarged bankrupt.

Only 1 application will be accepted from an individual ABNor a financial beneficiary of a business. Successful applicants cannot reapplyfor funding under this grant program

Objective

The objective of the program, stated on the QueenslandGovernment website, is to support small businesses subject to closure or thathave been significantly  impacted by thecoronavirus (COVID-19) shutdown restrictions, to adapt and sustain theiroperations and build resilience.

The program aims to help small and micro businesses:

• preparefor the safe resumption of trading in the post COVID-19 recovery;
• accessdigital technologies to rebuild business operations and transition to a new wayof doing business;
• respondto online opportunities, where possible, to sustain employment and maintainpotential for longer-term growth;
• upskilland reskill business owners and staff to benefit from new technologies orbusiness models; and
• embracebusiness diversification to adapt and sustain operations
• createor retain employment.

Available funding

The available grant amount is up to a maximum of $10,000per eligible small or micro business and the funding can be used towards:

• financial,legal, or other professional advice to support business sustainability anddiversification;
• strategicplanning, financial counselling or business coaching aligned to businessdevelopment and diversification;
• buildingthe business through marketing and communications activities, for example,content development (web pages, mobile apps, visual and audio media etc.);
• digital/technologicalstrategy development;
• digitaltraining or re-training to adapt to new business models;
• capitalcosts associated with meeting COVID-19 SAFE requirements;
• specialiseddigital equipment or business specific software to move business operationsonline (e.g. logistics program for online ordering); or
• meetingbusiness costs, including utilities, rent.

Grant funds can also be used towards any of the aboveactivities that were undertaken from 23 March 2020 onwards, but the projectmust be completed within a maximum of 6 months from the date of approval.

Applying small businesses must meet the eligibility andassessment criteria to be considered for funding and information about how toapply for grants can be found at:https://www.business.qld.gov.au/starting-business/advice-support/grants/grants-support

Applications for the program will close once the programbudget has been fully allocated.

Applying for the grant

The Government information to apply, complete the followingsteps on the website at https://www.business.qld.gov.au/starting-business/advice-support/grants/adaption :

• readthe eligibility criteria
• readthe application guidelines, terms and conditions and frequently asked questions(FAQs)
• applyusing the SmartGrants link:https://dtesb.smartygrants.com.au/adapt

In addition to meeting the eligibility criteria,applications will be assessed on:

• funding availability – applications will be processed on a 'first come, first served' basis, and therefore not all applications will be successful
• submission of a complete application form, with all requested supporting documentation included (i.e. your application must contain the requested supporting documentation, otherwise you will be contacted to provide appropriate evidence, and this may delay your application's progress)
• value for money, as determined by the Department of Employment, Small Business and Training (DESBT).

Further information

You can get more information about the program andapplication process by phoning 1300 654 687 or emailing adapt@desbt.qld.gov.au.

The NFP Lawyers Law team are available to assist you with any queries you may have about rebuilding or ‘pivoting’ your business as a result of COVID-19 effects.

NFP Lawyers can assist you with legal advice regarding:

• Business;
• WorkplaceRelations/Employment;
• IntellectualProperty;
• Realand Personal Property;
• BodyCorporate;
• Buildingand Construction; and
• CommercialDisputes/Litigation.

You can reach us at 07 3160 0010 or reception@nfplawyers.com.au .

Disclaimer - Reliance on Content
The material distributed is general information only. The information supplied is not and is not intended to be, legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.