27.6 C
Byron Shire
February 1, 2023

Access to capital critical for small business

Latest News

$3 million for regional news outlets in NSW

The NSW government has announced a new $3 million fund to assist regional communities to have access to trusted news sources covering the stories that matter.

Other News

They are Hotshots

The two-hour production is a visual feast, choreographed and developed by Australia’s leading professionals and a hand-picked selection of dreamy guys who will have the ladies up from their chairs, screaming for more, night after night. With a totally interactive production, The Secret Fantasies Tour is the perfect night out with the girls.

Duck Creek Mountain Bike Park reopens

Just off the road between Alstonville and Ballina, the spectacular Duck Creek Mountain Bike Park has re-opened, bigger and better, after an injection of funding and lots of hard work from dedicated volunteers.

Police find body of missing Elanora woman

Detectives attached to taskforce Victor Arum investigating the disappearance of 61-year-old Elanora woman Wendy Sleeman have recovered a body and vehicle at Wilston on Brisbane’s inner north yesterday.

Missing woman, Elanora

Police have charged a 30-year-old man with multiple domestic violence offences as the search continues for 61-year-old Wendy Sleeman,...

Ahana Candles

Victoria Cosford Many years ago, Marianni had a dream in which a golden liquid was pouring over her hands. She...

Dr Philip Nitschke to visit Lismore

Controversial founder and director of the pro-euthanasia group Exit International, Dr Philip Nitschke will hold a free public meeting on NSW’s new Voluntary Assisted Dying Act at the Lismore Workers Club on Saturday.

Many businesses and in particular small business, have been really struggling under the weight of COVID-19 and with the rollback of JobKeeper, things have just gotten tougher.

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell is urging the Federal Government to establish a revenue-contingent loan scheme for small businesses, to provide them with the cash flow they need to survive the next 12 months.

With government support measures being withdrawn, banks continuing to subject small business borrowers to onerous credit assessment processes, rent relief ending and the impact of recent lockdowns and border closures, Ms Carnell says access to finance could mean the difference between life and death for many small businesses.     

‘Unfortunately it’s a perfect storm scenario – especially for those small businesses that haven’t been able to fully recover from the COVID crisis,’ Ms Carnell says.

‘Access to credit will be critical to keeping those otherwise viable small businesses afloat, particularly over the coming months as support measures are phased out and the bills start flowing in again.

A revenue-contingent loan program

Ms Carnell is calling on the Federal Government to introduce a revenue-contingent loan program for small businesses, similar to HECS, requiring borrowers to repay when their turnover reaches a designated level.

The loan would be Government-funded and capped at a percentage of the small business’ annual revenue. Applicants would need to satisfy a viability test conducted by an accredited adviser to be eligible.

‘Sudden lockdowns and border closures have heavily impacted small businesses in recent weeks – it’s no wonder they are scared to take on additional bank debt given conditions can deteriorate so rapidly,’ Ms Carnell says.

‘Even in the best of times, small businesses have struggled to secure finance. Taking into account the enormous challenges they are now facing, the fallout of insufficient working capital could be devastating, not only for small business owners and their staff, but for the broader economy.

‘The latest ASIC data shows external administrator appointments were up by 23% in December 2020 and economists are predicting the number of businesses entering voluntary administration to rise this year.

‘A revenue contingent loan scheme would give small businesses the confidence they need to seek funding, so they can survive and employ again. It’s essential to Australia’s economic recovery’.

 


Recent stories, information and updates regarding COVID-19

Five graphs you need to see before the Global Carbon Budget...

The Global Carbon Budget is about to be refreshed, giving the world a critical insight into how efforts to reduce greenhouse gas emissions are (or are not) progressing.

2

Public transport mask mandate to end

Masks will no longer be mandatory on public transport from tomorrow, Wednesday 21 September.

1

NSW Police: be COVID-vigilant at Splendour in the Grass

SW Police are urging festival-goers at this weekend’s music festival to celebrate in a safe and responsible manner, whilst also being aware of COVID-Safety measures.

2

COVID-19 update for the NNSWLHD – May 23

The Northern NSW Local Health District reports that to 4pm yesterday, Sunday May 22, there were 40 COVID-19 positive patients in hospital in Northern NSW, with one of these in ICU.

0

AEC says COVID voters can phone from home

The AEC says that voters who have recently tested positive for COVID-19 will be able to phone in their vote in the federal election.

3

COVID-19 update: May 16

The Northern NSW Local Health District says that to 4pm yesterday, 15 May, 384 new cases of COVID-19 were confirmed in the District, including 82 positive PCR tests and 302 positive rapid antigen tests.

0

It’s National Volunteer Week

Volunteering Australia says volleys are the backbone of the country in times of crisis and emergency.

1

COVID-19 update: May 9

Today there are 41 COVID-19 positive patients in hospital in Northern NSW, with none of these in ICU.

0

COVID-19 update: May 6

The Northern NSW Local Health District (NNSWLHD) reports that there are 37 COVID-19 positive patients in hospital in Northern NSW, with one of these in ICU.

0

COVID-19 update: Monday 2 May

The Northern NSW Local Health District reports that in the 24 hours to 4pm yesterday, 1 May, 274 new cases of COVID-19 were confirmed in the area, including 56 positive PCR tests and 218 positive rapid antigen tests

0


Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Vale Professor Will Steffen – leading climate scientist

Leading climate scientist Professor Will Steffen has died of pancreatic cancer in Canberra at 75.

Oil spill on M1 near Byron, traffic backed up to Brunswick Heads exit

An accident on the M1 has brought southbound traffic to a standstill from the Brunswick Heads exit at Gulgan Road and Tweed Street.

Four arrested over alleged break-ins, trespass – Casino

Four boys have been arrested by police investigating alleged aggravated break and enter and trespass offences in Casino on Monday, 30 January.

V-Day returns to Byron Bay, February 14

A mass global action, One Billion Rising, which aims to end violence against women and children, is planned for V-Day on February 14, Main Beach, Byron Bay from 7am.