On 19 May 2020, the Queensland Government announced the Small Business COVID-19 Adaption Grant Program to support small businesses subject to closure or highly impacted by COVID-19 restrictions. The objective of the program is to help those businesses adapt and sustain their operations and to build resilience.
We highlight below some of the key information you should know about these new Grants.
How much is available?
The maximum grant amount available to each small or micro business is $10,000.
Is there a Minimum amount?
Yes. The Queensland Government has advised that applications with a total cost less than $2,000 will not be funded.
Who is eligible to apply for a Grant?
In order to be eligible for a grant, the business must meet the following eligibility criteria:
- have been subject to closure or otherwise highly impacted by current shutdown restrictions announced by Queensland’s Chief Health Officer on 23 March 2020
- demonstrate that business revenue has been significantly impacted since 23 March 2020 over a minimum 1-month period due to the onset and management of COVID-19
- employ staff and have fewer than 20 employees at the time of applying for the grant
- have a valid Australian Business Number (ABN) active as at 23 March 2020
- be registered for GST
- have a Queensland headquarters
- have an annual turnover over $75,000 for the last financial year
- have a payroll of less than $1.3 million
- not be insolvent or have owners/directors that are an undischarged bankrupt.
For what can I use the funds?
The Grant funds can be used towards a number of services, including legal, financial or other advice to support business sustainability and diversification. Other approved uses include:
- strategic planning, financial counselling or business coaching aligned to business development and diversification
- building the business through marketing and communications activities, for example, content development (web pages, mobile apps, visual and audio media etc.)
- digital/technological strategy development
- digital training or re-training to adapt to new business models
- capital costs associated with meeting COVID-19 SAFE requirements
- specialised digital equipment or business specific software to move business operations online (e.g. logistics program for online ordering)
- meeting business costs, including utilities and rent.
What isn’t covered?
There are a number of things this Grant will not cover, including:
- applications with a total cost of less than $2,000
- business costs otherwise supported by other Queensland and Commonwealth Government financial assistance measures;
- salaries;
- services delivered in-kind
- purchase of business assets, such as new vehicles;
- fees for services and/or goods provided by related parties;
- direct-selling businesses (such as network marketing);
- purchases or payments made prior to 23 March 2020.
How many Grants are available?
It is expected that the Grants will support approximately 10,000 small businesses.
When are the opening and closing dates?
Applications are now open and the Queensland Government intends to close the program once the budget has been fully allocated. For this reason, you should look to collate all of your supporting documents and submit your application as soon as possible.
What needs to be included in the application?
The Queensland Government has advised that the application must include:
- a statement describing how the funding will contribute to your business during the COVID-19 crisis in terms of employment retention or outcomes, business capability and resilience, continuity, diversification, and/or digital capability of the business;
- evidence to demonstrate that business revenue has experienced a minimum 30 per cent decline since 23 March 2020 over a minimum one-month period due to the onset and management of COVID 19 (e.g. BAS statement, dated accountant letter on letterhead from a member of CPA Australia, Chartered Accountants Australia & New Zealand or the Institute of Public Accountants);
- invoice and/or receipt of purchase if related to the purchase of specialised digital equipment or business specific software on or after 23 March 2020;
- declaration of employee head count;
- evidence of annual turnover; and
- evidence of annual payroll.
Which applications are likely to be successful?
The following are most likely to be successful:
- Those that meet the eligibility criteria and objectives of the Grant;
- Those submitted early to ensure funding has not been exhausted;
- Those submitted with complete applications and all supporting documents;
- Those considered to be value for money as determined by the Department of Employment, Small Business and Training.
When will the funding be available?
The Queensland Government has advised that the funding will be paid upon approval of the application for the Grant.
By when do I have to use Grant Funds?
The project must be completed within a maximum of 6 months from the date of approval.
Do I have to provide proof of payments for use of the Grant funds?
Yes. Within 1 month of completing the project in which you used Grant funds, you must complete and submit an acquittal report through SmartyGrants together with copies of the supplier invoices and proof of purchase.
All Grant funds must be used on the stated projects and random audits and penalties will be applicable.
Can Social Law Co. provide me with a quote for services to submit with my application?
Yes. We have provided clients with formal quotes in the past for previous Grants to submit with their applications, which have been successful. Please contact us as soon as possible for a quote.
How do I apply for a Grant?
You can apply for the Grant here.
