Kyneton barrister Paul White says state government support has come too late for many small businesses facing hardship in rolling COVID lockdowns.
He is giving free legal advice to at least 41 small businesses in the region at risk of insolvency or bankruptcy. Twenty-three of those cases are from the Macedon Ranges.
“They are typically angry, highly embarrassed, inconsolable, and proprietors losing self-esteem and dignity. Just 18 short months ago, they were bright, buoyant, happy and strong community people,” he told the Express.
Mr White said he had been advocating for better coverage of government funding for the past 10 months as many businesses had slipped through the cracks.
“Several of the smaller local businesses I’m trying to keep afloat are sole-traders or owner-operators from all the trades, as well as professionals in bookkeeping, accounting, engineering, surveying and building services,” he said.
“A common issue has been that some don’t qualify for any Business Victoria financial support at all, simply because they are sole-traders and don’t earn above $75,000 to register for GST.
“This has prevented them from any financial help since the pandemic began. It is heartbreaking for me to see up close how these smallest of small businesses have endured putting everything at risk just to be ready to one day again open.”
He said small businesses faced too many hurdles and did not fit into the narrow criteria for most of the available grants – including the Small Business COVID Hardship Fund.
The hardship fund is for small businesses with a payroll of up to $10 million who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $5000.
Since Mr White began advocating for improvements, the state government has introduced a dedicated concierge service for assistance for sole traders or microbusinesses seeking COVID-19 business support and advice.
The service is for those who work for themselves, or have up to two employees, have an annual turnover under $75,000, and are not eligible for Victorian Government COVID-19 business support grants.
But Mr White said he had had difficulties with the service, including long wait times and only being able to discuss one small business per phone call.
“On other occasions ringing through to the concierge, I’ve been referred or handballed on to free mentoring brochures, materials – that’s the horribly sad reality – it’s a nice-sounding initiative but of no material benefit,” he said.
Macedon MP Mary-Anne Thomas understood it had been a challenging time for small businesses and offered support through her office.
“There’s no doubt local small business has been doing it tough throughout the pandemic and the state government is working to deliver support,” she said.
“I congratulate all local businesses on adapting to changes so quickly and I acknowledge and understand the immense difficulties this has caused.
“If local businesses are having difficulties in accessing the resources they need, I encourage them to contact my office directly. If you need help in relation to current or pending funding applications, please give my office a call and we can follow up for you as well.”
Business assistance funding streams:
Business Victoria’s concierge service
Sole traders or microbusinesses seeking information or advice about COVID-19 business support can now call Business Victoria’s dedicated concierge service for assistance.
This service supports people who work for themselves, or have up to two employees and an annual turnover under $75,000 and are not eligible for Victorian Government COVID-19 business support grants.
To speak to an expert for advice call the Business Victoria hotline on 13 22 15 and selecting the microbusiness concierge service.
Business Victoria hotline
Businesses looking for advice on grants and programs can also speak directly to Business Victoria’s hotline on 13 22 15.
The Business Victoria Hotline is open seven days a week and is available to help with any queries about business support grants and other programs.
Additional small business programs that remain open to support businesses include:
Partners in Wellbeing helpline – 1300 375 330
Small Business Digital Adaptation Program: business.vic.gov.au/sbdap
Business Recovery and Resilience Mentoring: business.vic.gov.au
COVIDSafe Deep Cleaning Rebate: business.vic.gov.au
Upskill My Business: upskill.business.vic.gov.au
Jobs Victoria Fund: jobs.vic.gov.au/fund
Victorian Business Support Package
The new Victorian Business Support Package will deliver an additional $400 million in support to thousands of businesses, with funding to be split 50/50 between the Commonwealth and Victorian Government.
The package includes a new $85 million Small Business COVID Hardship Fund and $156 million Business Continuity Fund, as well as delivering support for commercial tenants and landlords.
Four key elements make up the support package to help businesses deal with ongoing public health restrictions.
Business continuity fund
A $156 million Business Continuity Fund will be established to deliver $5000 grants to up to around 30,000 businesses that remain impacted by capacity limits placed on businesses by necessary public health restrictions.
Twenty-four eligible sectors are covered by the fund including gyms, cafes, restaurants, catering services and hairdressers.
All recipients must have received or been eligible for the previous Business Costs Assistance Program.
Licensed Hospitality Venue Fund 2021
The Licensed Hospitality Venue Fund will receive a $70 million boost, with grants of up to $20,000 to be made available to support licensed venues as their operations continue to be impacted by current restrictions.
These grants recognise that larger venues depend more on dine-in and have higher operating costs, so need more support than smaller operations.
Commercial Tenancy Relief Scheme and Landlord Hardship Fund
The package, to be fully funded by the Victorian Government, will deliver $80 million to provide support to landlords that provide rent relief to their tenants.
The Commercial Tenancy Relief Scheme will be reinstated to provide much needed rent relief to small to medium commercial tenants and their landlords with more details on the roll out to be provided by the Victorian Government soon.
Small Business COVID Hardship Fund
A new $85 million fund will be established to support small businesses who have not been eligible under existing business support funds.
Small businesses with a payroll of up to $10 million who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $5000.
