The NSW government will launch the largest assistance package for small business in its history, offering $750 million in grants for up to 75,000 businesses hamstrung by the COVID-19 restrictions.
Treasurer Dominic Perrottet will announce on Friday that businesses across the state whose revenues have taken a significant hit will receive grants of up to $10,000 each.
Mr Perrottet will say the latest support is designed to provide fast relief for those not eligible for other assistance.
“This is real, rapid, relief for tens of thousands of businesses and it will help ensure many businesses that are not eligible for payroll tax waivers and deferrals can live to trade another day.”
“We have the structures in place after the bushfires, and expect to see this money rolling out the door shortly,” Mr Perrottet will say.
The new fund is based on the successful scheme rolled out during the recent bushfire crisis, in which the NSW government provided up to $42 million to up to 4200 businesses.
“Many local cafes, restaurants, corner shops, gyms and small accommodation providers will be eligible to apply.”
Eligible businesses will need to have between 1 and 19 employees, a turnover of more than $75,000, and a payroll below the NSW government 2019-20 payroll tax threshold of $900,000.
The funds must be used for funding unavoidable business costs such as utilities, overheads, legal costs and financial advice. Service NSW will administer the scheme, which will open within a fortnight and remain open until June 1.
It is understood their revenues would need to have taken a hit of up to 66 per cent – a much higher benchmark than the 30 per cent drop the federal government requires from businesses seeking assistance through the $130 billion JobKeeper policy.
NSW Premier Gladys Berejiklian expects the government will “make the application process easy” to ensure small businesses could receive some cash flow as soon as possible.
NSW Minister for Finance Damien Tudehope said: “This is the largest support package for small businesses in the history of NSW.”
The latest NSW government assistance brings the state government’s total package announced in the past fortnight to $7.61 billion – far more than any other state.
Funding the extra spending measures will be assisted by further debt issuance from the state government.
The investment and financial management partner of the state government, TCorp, on Thursday raised a combined $3.2 billion in debt.
TCorp issued $1.2 billion floating rate notes and $2 billion more benchmark bonds.
“This is the largest transaction of its type since 2011 that has taken place among Australian semi-government issuers,” TCorp’s Head of Funding & Balance Sheet Fiona Trigona said.
This is the first deal in the Australian primary market after five weeks of market volatility because of the COVID-19 pandemic.
Extracted from AFR