Small Business Grants QLD COVID-19 Adaption Grant

Round 2 of the Government Small Business Grants QLD for the COVID-19 Adaption Program opens for new applications from 1 July 2020. $100 million in new funding is being made available to eligible small business who’ve been closed or impacted by coronavirus to adapt and sustain their operations.

Update: 3 July 2020 – 100% of funds available for South East Queensland small businesses applied for – CLOSED FOR SOUTH EAST QLD

Queensland Small Business Grant COVID-19 Adaption Round 2

The funding round for Regional Queensland remains open. Please continue to submit your application. 

Summary of the COVID-19 adaption small business grant QLD

Grant open date 1 July 2020
Amount of grant $2,000 to $10,000 per small business
Total amount of grant $100m ($50m only for South East QLD)
Purpose of grant Small business adaption for COVID-19 impacts
Eligibility criteria QLD small businesses.

How much is the QLD small business grant?

The amount available for the small business grants for QLD is a minimum of $2,000 and a maximum of $10,000 per eligible small or micro business.

Round one of the small business grant from the Queensland Government was fully allocated in less than a week, however this $10,000 grant has a larger funding pool of $100 million.

What must the grant be used for?

In recognition of the significant impacts of COVID-19 on small businesses in Queensland, money from the adaption program grant can be used towards the following:

  • financial, legal or other professional advice to support business sustainability and diversification
  • continuing to meet business operational costs including utilities, council rates, rent, telecommunication charges, insurance fees, licensing or franchise fees
  • strategic planning, financial counselling or business coaching aligned to business development and diversification
  • building the business through marketing and communications activities (e.g. content development – web pages, mobile apps, visual and audio media etc.)
  • digital/technological strategy development
  • digital training or re-training and up-skilling employees to adapt to new business models
  • capital costs associated with meeting COVID-19 safety requirements
  • specialised digital equipment or business specific software to move business operations online (e.g. logistics program for online ordering).

Note: Grant funds can be used towards any of the above activities occurring from 23 March 2020 onwards, keeping in mind the project must be completed within a maximum of 6 months from the date of approval.

This means the small business grants under this program can be used on expenses already paid where it’s related to supporting the business through COVID.

All invoices or quotes from suppliers will be checked to determine if they are genuine (e.g. supplier has as active ABN and the invoices or quotes have not been altered in any way).

What items are not covered by the COVID-19 small business adaption grant?

These activities will not be funded under this program:

  • applications with a total cost less than $2,000 – all your proposed activities or quotes and invoices must be eligible and be a total of $2,000 or more (but under $10,000)
  • business costs otherwise supported by other Queensland and Commonwealth Government financial assistance measures
  • salaries or wage expenses for your employees, including superannuation or WorkCover
  • services delivered in-kind (grant funding will only cover services paid for via a financial transaction)
  • purchase of business assets, such as stock or fleet vehicles/machinery
  • fees for services and/or goods provided by related parties (such as companies with common shareholdings or directorship with the applicant, and employees or immediate family of the applicant)
  • direct-selling businesses (where sales of another business’ goods or services are made in the customer’s home, work or other meeting place through methods such as party plan and network marketing)
  • goods or services purchased, or any payments made, prior to 23 March 2020.

Eligibility criteria for the QLD small business COVID-19 adaption grant

The eligibility criteria for this grant is the same as Round 1 which was launched in May 2020:

  • have been subject to closure or otherwise highly impacted by current shutdown restrictions announced by Queensland’s Chief Health Officer on 23 March 2020
  • demonstrate that business revenue has been significantly impacted since 23 March 2020 over a minimum 1-month period due to the onset and management of COVID-19
  • employ staff and have fewer than 20 employees at the time of applying for the grant
  • have a valid Australian Business Number (ABN) active as at 23 March 2020
  • be registered for GST
  • have a Queensland headquarters
  • have an annual turnover over $75,000 for the last financial year
  • have a payroll of less than $1.3 million
  • not be insolvent or have owners/directors that are an undischarged bankrupt.

South East QLD small business grant eligibility

When applying for round 2 of the small business grants QLD, you are a South East Queensland (SEQ) business if your principal place of business is located in 1 of the following local government areas:

  • Brisbane City Council
  • City of Gold Coast
  • Ipswich City Council
  • Lockyer Valley Regional Council
  • Logan City Council
  • Moreton Bay Regional Council
  • Noosa Shire Council
  • Redlands City Council
  • Scenic Rim Regional Council
  • Somerset Regional Council
  • Sunshine Coast Council
  • Toowoomba Regional Council.

For the purposes of the small business grants QLD you are a ‘regional business’ if your principal place of business is any other local government areas within Queensland that is not identified as a SEQ location.

COVID-19 Adaption Small Business Grants QLD – Evidence Requirements

The following outlines the evidence that is needed to be provided to obtain funding in Round 2 of the QLD Small Business COVID-19 Adaption Grant Program:

Turnover: Business annual turnover above $75,000 Either business activity statements, business tax return and financial statements or accountants letter (CPA/CAANZ) declaring turnover.
Impact of COVID-19: Business turnover decline of at least 30% for at least on month from 23 March 2020 Business activity statements showing reduction, financial reports showing reduction, letter from accountant (CPA/CAANZ) declaring impact. If your business is eligible for JobKeeper you or your accountant will have this information.
Contact Details: For business applying for the small business grant Australian Business Number (ABN) and GST registration confirmation. Business address must be in Queensland.
Business Details: Key business information Financial performance including annual turnover and gross profit, business ownership information, how many employees (must be fewer than 20 employees to be eligible).
COVID-19 Business Impact: How Coronavirus impacted you business. Facts and figures around reduction of staff and their hours, lost turnover / sales, financial losses and additional costs incurred. Data and statistics are especially useful.
Spending the Grant: How the business will use the funding. Type of spending (operational cost versus digital project), start and finish dates of project, copy of invoices and quotes (ensure they include the legal names of the business as well as ABN, logos etc – they will be verified!). Invoices and quotes need to clearly outline the details of the expense or project. Trading stock, salaries and superannuation are not allowable.
Bank Details: For payment Ensure you have the business banking details available for the grant to be paid into.

Applying for the COVID-19 Adaption Small Business Grants

We recommend the following steps to apply for Round 2 of the QLD small business COVID-19 adaption grants:

  1. Check your eligibility and submit your details
  2. Read the Frequently Asked Questions below
  3. Speak to Quill Group about how we can assist you and how to best allocate funding
  4. Prepare all necessary information and supporting documentation for your application
  5. Ensure you are registered with SmartyGrants prior to 1 July 2020
  6. Submit as soon as possible from 1 July 2020

1 July 2020 – Applications now open

Applications are now open.

If your business is eligible you can apply here: Small Business COVID-19 Adaption Grant Program

Frequently Asked Questions (FAQs) regarding the small business grants QLD COVID-19 adaption grant

The following are the most common questions in relation to this grant and eligibility.

Does the small business have to be located in QLD? What if there are multiple locations?

The business must have a Queensland headquarters. To demonstrate this, the ‘Main Business Location’ of the applicant’s ABN must be listed as being in Queensland on the Australian Business Register(ABR) at the time of application.

If the ABR listing for the applying business does not list Queensland as the main business location, you must provide evidence of a Queensland headquarters in writing to adapt@desbt.qld.gov.au prior to the grant round closing.

Evidence of a Queensland Headquarters includes:

  • a copy of the applicant’s Australian Securities and Investments Commission (ASIC) Company Statement listing a Queensland address as ‘principal place of business’or
  • a letter from the applicant’s accountant confirming the business has changed to a Queensland main business location.

Does the business need to be registered for GST to receive this QLD small business grant?

Yes. The business must be registered for GST at the time of application to be eligible for funding under this program.All businesses that have an annual turnover of $75,000 or greater are required to register for GST.

If you business is not currently registered for GST, however you estimate that your turnover will be above $75,000 for the financial year beginning 1 July 2020, please contact us for further advice as your business may still be eligible but you will need further evidence as part of your application.

Is the grant taxable income of the business?

Yes. The grant income received by successful applicants is assessable income of the business, however to be eligible the business will either incur expenses (or already has incurred expenses) relating to expenditure which is typically tax deductible and therefore offsets the income.

How is GST treated on the small business grants?

Grants are not subject to the GST. Therefore, GST is not payable and grant funding will not compensate for any GST spent by the business. The grant amount is GST exclusive.Your business will, or will have, already claimed back the GST on applicable expenses.

What evidence is needed to show my business turnover is above $75,000 for this grant?

Your application must include a Business Activity Statement (BAS), tax returnor dated accountant letter on letterhead, to demonstrate that your business has an annual turnover of more than $75,000.Accountant letters must be from members of CPA Australia, Chartered Accountants Australia & New Zealand or the Institute of Public Accountants.

Can I submit an application without all necessary evidence?

No. You must submit a completed application, which includes all supporting evidence as requested in the application form,in order to be considered for the grant. Failure to submit complete applicationswill result in delays to processing and in the interim funds may be exhausted.

Can an accountant or other supplier apply for the grant on my behalf if I give permission?

No.  Although business advisors and accountants such as Quill Group can assist and provide help with your application, the person submitting the application form must be a representative (director etc) of the business applying for the COVID-19 adaption small business grant QLD.

If my business receives this small business grant, what must I do after?

The following actions and reporting are required:

  • enter into a funding agreement with the Department of Employment, Small Business and Training
  • purchase the product/s or service/s in full as per the funding agreement
  • deliver the project as per the funding agreement
  • complete a final acquittal within one month of the project completion date
  • complete a follow–up survey six months after the Program has finished.

When will funding be available and how will payments be made?

If your application is successful, the funding will be provided directly to the applicant. To fully acquit your grant you will be required to submit an acquittal report through SmartyGrants that includes receipts.