Government Support for Small Businesses during the COVID-19 Pandemic
Small businesses are among the hardest hit by the coronavirus pandemic. In the US alone, the National Small Business Association reports that almost half of small businesses experienced reduced customer demand while 38% are no longer confident about their future.
A lot of these businesses are now fighting for their survival and governments around the world are supporting them to help them stay afloat. Here are the different relief packages offered to SMEs (small, and medium enterprises) in the midst of the coronavirus pandemic.
- The Australian Government is now providing up to AU$100,000 a cash flow boost to eligible small and medium-sized businesses, and non-profit organizations.
- The JobKeeper payment for employees and employees provide employers with at least AU$1,500 per eligible employee to enable them to pay their salaries or wages per fortnight.
- Employers are also eligible for a wage subsidy of 50% for apprentices or trainees that they employ.
- You may find more information in the website of the Australian Government.
- The Canadian Government is offering wage subsidies, deferral of tax remittance and duty payments, and credit availability among other relief options.
- Certain industries are also provided with additional support to help them mitigate their losses due to the pandemic
- You may visit the Canadian Government’s website for more information on their COVID-19 Economic Response Plan.
- Hong Kong’s government has introduced more than 70 measures under the first round of its Anti-Epidemic Fund (AEF).
- The Government provides each sector with its own specific subsidy.
- You may access the Government’s flyer here for your reference.
- Singapore’s government offers deferred payment of principal on secured SME Term Loans.
- The Monetary Authority of Singapore also offer banks and financial companies lower interest on new loans intended for SMEs. Banks and financial companies are to pass on cost savings to SMEs.
- Flexible Premium Installment Plans for general insurance policies
- Here is the Government’s detailed document on its support measures to guide you further.
- New Zealand’s government is providing a business finance guarantee scheme to SMEs, together with the approved banks.
- Under the program, businesses with annual revenue of NZ$250,000 to NZ$80,000,000 are eligible for loans up to NZ$500,000, for up to three years.
- For additional information on this finance guarantee scheme, please visit the government’s website on finance support for businesses.
- The United Kingdom provides a wide range of support for businesses including business rates relief, tax payment deferral, and wages and sick pay assistance.
- Small businesses are also provided with a loan scheme to help them access additional financing up to GBP 5,000,000.
- You may visit this website for the full list of the UK’s government support for businesses.
- The United States is providing small businesses with access to capital to help them with payroll, inventory, and market fluctuations.
- Small businesses may get US$500 to US$5,500,000 from the government’s loan assistance.
- Here is the US Small Business Administration’s website for information on the capital access scheme.
- Here are 8 financial tools that small business owners can use to soften the impact of COVID-19.
As the COVID-19 spreads around the world, it is of paramount importance for everyone to follow the guidelines set by the World Health Organization and your local authorities to protect yourself and others. While not all businesses can continue their processes with the help of digital tools, government support will definitely help everyone manage their finances during the crisis.
If you are looking for help in managing your accounts and finances, D&V Philippines is offering specialized finance and accounting solutions during the coronavirus pandemic. You may access our infographic for more information.
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