Covid-19 Relief Options
I need options!
Cash flow is still strained for many businesses due to the Covid-19 lockdown. As a result, significant support from the government is an absolute necessity. But now there are SO MANY Covid-19 relief options available that you might not know where to start.
Can you relate?
Each option provided to us has a different purpose, requirements, limitations and restrictions. So, how do we even choose?
The 4 Covid-19 Relief categories
The easiest way to understand your options is by grouping them into specific categories.
Buy your Goal Setting Bundle!
Firstly, this post deals extensively with the options available to assist with payroll payments.
- It includes TERS (Temporary Employee/Employer Relief Scheme) payments – available for April and May 2020. This support is for businesses impacted by Covid-19 and have suffered full or partial shut-down.
- The other main option is additional ETI relief. This relief widens the net of employees that are eligible for receiving ETI. It also increases the monthly amount available.
Secondly, there is a loan available to the employer (SAFT). It’s a 5-year loan with no interest and no specific repayment terms (as long as it is paid by the end of the fifth year). It offers R750 per week to employees over a 15 week period. Enquire from your bank about your options.
There are some industry-specific debt relief options available. Click on the hyperlinks for more information.
- Hospitality and Tourism
- Sports, Arts and Culture
- Mining, minerals, agriculture & automotive
But, other than these specific options, three main relief funds exist.
- SMMESA Fund – apply for Debt Relief (if you’re severely impacted by Covid-19) or the Growth Resilience Facility (if you’re providing essential services and supplies).
- This is a loan up to R500,000 with lower interest rates
- Read more about the loan, application process and requirements here.
- Giving for Hope Foundation – apply for a R1m loan with no interest and a 12 month payment holiday. Some fairly specific requirements apply. Find more information here.
- Covid-19 Loan Scheme – this is one of the latest schemes activated. At the time of writing, this is considered “last resort” financing. Find more information from your bank.
Tax payment relief
Although not necessarily a reduction in tax liability, this relief frees up cash flow by deferring tax payments.
A variety of taxes are affected by this deferral. The most relevant ones for Small & Medium businesses relate to:
- PAYE – delay 35% of your liability for the months of April – July over a period of 6 months
- Provisional tax – delay 35% of your first and second payments to the third top up payment
Finally, businesses are well-supported through funding options by the government. But in our personal capacities, this may not be equally true. There are a few strategies we suggest. They are discussed in some detail in the video below.
Give me the details!
Now we get to the fun part! During a webinar with the Midvaal Entrepreneurs Network, Kristine presented on the details of the options mentioned above. Check out the video below, and download the slide deck here.
Help me get some Covid-19 relief!
It’s tough managing all these options, figuring out what you qualify for, and getting all the right documents together.
So, if you want to get rid of these headaches and make it someone else’s problem, get in touch with us! We can help reduce the stress and anxiety that comes with freeing up some cash flow. Book a meeting below and let’s make it rain!