The NSW Government has introduced the 2021 Covid-19 Micro Business Grant to provide support to micro businesses (turnover between $30,000 and $75,000) impacted by the Covid-19 restrictions.

Payments

Eligible Micro Businesses may be eligible for a fortnightly payment of $1,500 to cover business expenses for the duration of the Greater Sydney Lockdown.

Eligibility Criteria

• Have an ABN at as 1 June 2021, registered in NSW (or can demonstrate you operate in NSW).
• Turnover between $30,000 and $75,000 for the year ended 30 June 2020.
• Have experienced a decline in turnover of 30% or more due to lockdown over a minimum 2-week period from 26 June 2021 to 30 July 2021 when compared to the same period in 2019.
• Have business costs for which no other government support is available.
• Have not applied for either the 2021 COVID-19 business grant or the JobSaver payment.
• Maintain your employee headcount as at 13 July 2021 while receiving payments from this grant, if you're an employing business.
• Have this business as your primary income source, if you're a non-employing business such as a sole trader.

Non-employing businesses cannot apply if anyone associated with the business or who derives income from it has received the Commonwealth COVID-19 Disaster Payments. For employing businesses, your employees can receive the Commonwealth COVID-19 Disaster Payments if you receive this grant.

How funding may be used

It is expected that grants will be paid within five days of application. Due to the fast roll-out, the information and supporting documents will not be reviewed by Service NSW until a later date. As we have seen with previous NSW Government Grants, there will be a high level of audit activity at a later stage. It is important that you maintain records on the eligible expenses that you have spent the funding on. If this cannot be substantiated, you may be forced to repay the grant with penalties.

These eligible expenses may include, but are not limited to the following:

• Salaries and wages,
• utilities and rent,
• financial, legal or other advice,
• marketing and communications,
• the cost of perishable goods that can no longer be used, or
• other activities to support the operation of the business.

The Grant must only be used for expenses for which no other government support is available. For example, the Grant cannot be used to pay Government fees and charges that would be covered by the $1,500 Small Business Fees and Charges Rebate.

Please note that drawing the funds from your business to fund personal expenses is not deemed a business cost.

When to apply

Applications are now open and close 18th October 2021.

What we will do

We will prepare the accountant’s letter that is required when applying.

 In order to prepare this required letter we will

• review your general eligibility for the grant.
• review your turnover for the two week period, compared to the same period in 2019.
• review your staff headcount before and after 13 July (if applicable).

Next steps

Please contact us if you believe your business has seen a 30% or more decline in turnover.

Once we receive your email we will send you an engagement letter to carry out the work.
One you receive the accountant’s letter from us, you will need to apply for the grant through your Service NSW account.

Should you have any questions, please contact us. Please note, we are currently receiving a high volume of calls and emails and will get in contact with you as soon as possible.

If you know your business' turnover was above $75,000 you may be eligible for the Covid-19 Business Grant. For more information, please click here.