COVID cash and JobKeeper deadlines looming for small SA businesses

A deadline for COVID cash has been extended for businesses hit by the three-day lockdown, but cuts are also coming to JobKeeper.

More than $58m has been handed out to struggling South Australian businesses and not-for-profit organisations in the past two months in response to the coronavirus pandemic, figures show.

Treasurer Rob Lucas on Thursday reminded small businesses the grants deadline had been extended until the end of February to ensure those significantly affected by November’s three-day lockdown could still apply.

Meanwhile, businesses are preparing their books to determine if they will be able to keep their employees on the JobKeeper program, which is set to be cut by between $100 and $200 a fortnight for some from Monday.

Treasury figures show more than 6300 small businesses and not-for-profits have received $58.4m in grants in the past seven weeks.

Small businesses supported by the second round of $10,000 cash grants – which were part of a coronavirus response stimulus package – range from florists, cafes, restaurants and gyms to manufacturers, beauty salons and tourism operators.

Of the total 6316 recipients, 5620 small businesses and not-for-profits received the grant.

A further 696 eligible businesses that do not employ staff received a $3000 grant.

“The cash grants can be used to cover a business’s ongoing or outstanding operating costs such as rent, power bills and raw materials costs as well as other fees,” Mr Lucas said.

He said that in the first grant scheme, about 18,700 businesses shared in $186m, which supported more than 100,000 jobs.

Bean Bar-City Cross owner Frank Scorsonelli – who with wife Teresa started operating the cafe near the Rundle Mall just weeks before a national lockdown in March – said the grants were a lifeline for his new business.

Frank and Teresa Scorsonelli, owners of the Bean Bar in City Cross Arcade/James Place. Picture: Sam Wundke

“We probably wouldn’t have been in business without them (the grants),” he said.

“We’ve kept all of our staff in their jobs. There’s still a lot of people missing from the city, but we’re starting to see the light.”

Business SA chief executive Martin Haese said it was still unclear how many SA businesses would be affected by the January 4 JobKeeper changes.

“Anyone who is involved in international tourism has been materially impacted by CO­VID, so they are likely to continue to get JobKeeper,” he said.

“However, we know already that under the current tranche of the JobKeeper, less of the hospitality sector qualified during September to December because in earlier months they had traded quite well.”