Victorian Small Business COVID Hardship Fund

Applications are closed for Round 1 the Victorian Small Business COVID Hardship Fund.   But a new round of funding has been announced 30 September 2021.  I may have missed this but i can not see where any applications for this were re-opened.  I can only assume the funding was given to round 1 applicants who missed out on funding when the original allocated pool of money was exhausted.

This fund is targeted at businesses registered for GST (in effect have a turnover of above $75,000) who are not eligible for other Victorian Grants and have suffered a 70 percent decline in revenue due to covid lockdowns

Updated 30 September 2021

Read on to learn more about the Victorian Small Business COVID Hardship Fund.

The Victorian Small Business COVID Hardship Fund itself

The Victorian Small Business COVID Hardship Fund assists small to medium businesses:

• whose operations have been severely impacted by COVID restrictions that have been in place since 27 May 2021; and,
• who have experienced at least a 70 per cent reduction in turnover as a result of the COVID-19 restrictions; and,
• are ineligible for other key COVID-19 Victorian Government business grant programs that have been announced since 27 May 2021.

The value of the grant under the Small Business COVID Hardship Fund is now $14,000 (was $8000 then $10,000 and now $14,000 as lockdowns keep getting extended).

Eligibility Rules

In order to be eligible for the Victorian Small Business COVID Hardship Fund your business or not for profit organisation must:

• have an Australian Business Number (ABN), registered for GST (in effect have a turnover of above $75,000) and be operating in Victoria as at 28 July 2021;
• as a direct consequence of COVID-19 restrictions since 27 May 2021, have experienced a reduction in turnover of at least 70 per cent for a minimum consecutive two-week period comparable to a Benchmark Period in 2019 (or other alternate period if you don’t have a trading history in 2019);
• have total annual Victorian wages of $10 million or less as at 1 July 2020;
• for employing businesses be registered with WorkSafe Victoria; and declare that the business is supporting its workers to access any paid leave entitlements, or that if a person can work from home, to work from home during the July COVID-19 Restrictions, and supporting their casual workers, where possible;
• you must intend to remain trading at the end of the COVID-19 restrictions.

Note – You can only claim one grant per ABN and Applications may be subject to audit by the Victorian Government.  Not-for-profit entities with annual turnover between $75,000 and $150,000, which are not registered for GST and are registered with the Australian Charities and Not-for-Profit Commission are eligible to apply.

Businesses will not be eligible to receive a Small Business COVID Hardship Fund grant if they have received support under any of the government COVID-19 support packages launched on and after 27 May 2021, including:

• Business Costs Assistance Program Round Two
• Business Costs Assistance Program Round Two Extension
• Licensed Hospitality Venue Fund 2021
• Licensed Hospitality Venue Fund 2021 – July Extension
• Alpine Resorts Support Program
• Victorian Events Support Package

Reduction in Turnover

A key requirement is that as a direct consequence of COVID-19 restrictions since 27 May 2021, your business has experienced a reduction in turnover of at least 70 per cent for a minimum consecutive two-week period between 27 May and 10 September 2021 comparable to a Benchmark Period being:

• For businesses that were actively trading in 2019: a similar time of year between 27 May 2019 to 10 September 2019, or
• For businesses that were not actively trading in 2019: a normal level of trading between 1 February 2021 to 28 July 2021.

Accountant’s letter

The reduction on turnover generally needs to be supported by an qualified accountant’s letter.  Bookkeepers or BAS agents who are not post degree qualified are not able to prepare this letter.

If you don’t use a qualified accountant for your tax return there is an alternate option for you where you are invited to apply and will need to provide appropriate documentation.

What can the funding be used for?

The funds under this support program must be used to assist the business, for example on:

• Meeting business costs, including utilities, wages or rent;
• Seeking financial, legal or other advice to support business continuity planning;
• Developing the business through marketing and communications activities; or
• Any other supporting activities related to the operation of the business.

More information

Applications for round 1 are now closed.  But on 30 September 2021 a new round of funding was announced, I may have missed this but i can not see where any applications for Round 2 were re-opened.  I can only assume the funding was given to round 1 applicants who missed out on funding when the original allocated pool of money was exhausted..

Click here to get more information.

If you want a confidential discussion on your business situation, or help with this grant contact me below

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At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.

Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au