What Financial Stimulus is Available for Covid-19 Affected Video Businesses - Shorty EP #076

With everyone affected in some way by the current situation, today's episode is split into 2 parts. In part1 - What is available from government stimulus packages and Part 2 - What can you do to generate new business at this time?

Here are some key links to resources in the UK, USA, and Australia.

Australia

(thanks to Mike Rhodes from www.websavvy.com for assembling this Aus information)

Here's a summary of the govt packages so far that I know of - pls add any others in the thread

WAGES help:

Eligible employees are employees who:
• are currently employed by the eligible employer (including those stood down or re-hired);
• were employed by the employer at 1 March 2020;
• are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);

If you've suffered a drop of 30% (relative to comparable period last year) then you can $1500 per fortnight for each eligible employee
(casuals must be employed for 12+ months prior to march 1)
source: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_4.pdf?fbclid=IwAR3iwqmrUr2Xksi4G4LoWoY2HaqvrkViFEV5zp02upvxoh3E4TfxPzRYUT0

Cash flow assistance:
You can claim $20k-100k
(initially the min was $2k, that's been increased to $10k per payment - you can claim twice. Once now(?) & another in July-Oct period.
It will be automatically on your BAS (as a credit when you lodge I believe)
Changes slightly if you file BAS monthly or quarterly
I think it's essentially the amount of PAYG you were going to pay from April - Sep (inclusive)
Capped at $100k
examples here: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf?fbclid=IwAR3KzmH9P2OZ6Qh5Kz7tgsHJshQGLTl4XxKWigFgQ570rB7MymG2D8CdSQM

Payroll tax:
Different in each state

Assets:
Instant asset write-off increased from $30k to $150k
If you really feel like buying something big right now

Apprentice & trainee assistance:
Get 50% of their wage back (Jan-Sep 2020)
Max $21k

United Kingdom

COVID-19: support for businesses
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

How UK companies can access state Covid-19 bailout funds | Free to read
https://www.ft.com/content/ab76001f-df0d-4f87-8ac5-07ec9f263946

Coronavirus (COVID-19): Advice and guidance for small businesses and the self-employed
https://www.fsb.org.uk/campaign/covid19.html

The Chancellor announced a major package of support for the self-employed:

HMG will pay the self-employed a taxable grant worth 80% of their average monthly profits over the last three years up to £2500 per month
This will be available for three months. Will be extended if necessary
People can claim these grants and continue to do business
Covers self-employed same as those furloughed

To ensure the funds reaches the people most in need:

Open to anyone of trading profits of up to £50,000
Available to people who i) make the majority of their income being self-employed, ii) Have a self-employed tax return for 2019

How to access

HMRC will contact you directly and you’ll have to fill out a form
HMRC will pay the grant directly to bank accounts.
Aim is to pay at the beginning of June (3 months backdated). Hoping to be quicker than that but recognition HMRC are now having to design two new systems
Anyone who missed the Jan filing deadline has an extra 4 weeks from today to submit their tax return

Further Details can be found at - https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals

The UK stimulus is a little confusing so you might find this useful

United States

Economic Injury Disaster Loan advance of up to $10,000

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid."

https://www.sba.gov/funding-programs/disaster-assistance?fbclid=IwAR0xzSzFTteXhZnAILyTC8cPARDrnEBxA8setk4PFysTFD0hAG6xAvZ0g9U

United States: President Signs CARES Act in Response to Coronavirus Pandemic
http://www.loc.gov/law/foreign-news/article/united-states-president-signs-cares-act-in-response-to-coronavirus-pandemic/

Disaster assistance

The SBA provides low-interest disaster loans to help businesses and homeowners recover from declared disasters.

https://www.sba.gov/funding-programs/disaster-assistance?fbclid=IwAR0xzSzFTteXhZnAILyTC8cPARDrnEBxA8setk4PFysTFD0hAG6xAvZ0g9U

Small Business

Amount: $377.0 billion – 19% of total CARES Act

To ease the strain on businesses around the country, the Small Business Administration (SBA) will be given $350 billion to provide loans of up to $10 million to qualifying organizations. These funds can be used for mission critical activities, such as paying rent or keeping employees on the payroll during COVID-19 closures.

As well, the bill sets aside $10 billion in grants for small businesses that need help covering short-term operating costs.

https://www.visualcapitalist.com/the-anatomy-of-the-2-trillion-covid-19-stimulus-bill/

Everything You Need to Know About Coronavirus Federal Small Business Stimulus Aid Programs

A breakdown of all the federal programs and aid for small business coronavirus assistance.

https://www.uschamber.com/co/start/strategy/federal-small-business-stimulus-aid-programs-guide

What Financial Stimulus is Available for Covid-19 Affected Video Businesses - Shorty EP #076

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