In light of the ongoing COVID-19 crisis, the Australian Government is taking new measures to support small and medium sized businesses.

The news accompanies Sunday’s stage one, non-essential business restrictions announcement, in which Prime Minister Scott Morrison relayed a list of compulsory outlet closures effective Monday 23rd March.

As notable list omissions, hairdressing salons, beauty salons and barbershops have been cleared to remain open for the foreseeable future. A welcome dose of good news for salon owners and hairdressers alike.

For those however, struggling with client retention, cashflow and/or any other COVID-19 related financial stress, the following information may be of service.

As part of the Government’s emergency assistance package, small to medium-sized businesses can access between $20,000 – $100,000 in support funds; a bid to manage cashflow challenges and keep staff employed.

As per the Australian Treasury Department, such payments are aimed to help businesses with their cash flow so that each may remain in operation, pay rental fees, electricity and other bills as well as retain their staff and support apprentices and trainees.

Under the enhanced scheme, employers will receive a payment equal to 100% of the tax withheld from salary and wages, up to a maximum of $50,000. Eligible businesses may also receive a minimum $20,000, even if they are not required to withhold tax.

Who is entitled? Those eligible include small and medium sized business entities who not only employ workers but also have an aggregated annual turnover of under $50 million.

Additionally, with companies reluctant to borrow given current circumstances, the Government has also announced a Coronavirus SME Guarantee Scheme for small and medium sized businesses.

Under the scheme, small and medium enterprises (SME) lenders can receive a guarantee of 50% for unsecured loans (as guaranteed by the Australian Commonwealth), to be used for working capital.

As per provided terms, this will ‘enhance these lenders’ willingness and ability to provide credit, which will result in SMEs being able to access additional funding to help support them through the upcoming months.”

The guarantee will cover loans granted within six months, from April 1 and will apply to new or existing customers of banks and non-bank lenders.

Lenders will not be charged a fee for accessing the scheme, and it will be repayment-free for six months. The maximum loan will be $250,000, for a term of up to three years.

At present, it’s estimated that approximately 690,000 businesses (employing close to 7.8 million people) will he helped. Proof that we’re all in this together; albeit physically apart.

For more information, or to find out if your business is entitled, head to: business.gov.au/grants-and-programs.