Covid-19: Country-by-Country Support Measures
Countries around the world are responding differently to the Coronavirus crisis. Local conditions, politics and finances determine individual responses. Some countries are pursuing major fiscal stimuli with a range of support measures to support small businesses through the crisis.
In the United States, for example, the US government has introduced the Paycheck Protection Program, 100% forgivable loans to help businesses with fewer than 500 employees make payroll and rent. Immigrant-owned businesses are eligible for support. Covid-19 has also been declared a disaster under the Small Business Administration Act, which means small businesses can also apply for an Economic Injury Disaster Loan (EIDL). There are other support measures available, including various tax reliefs and support at the state and city level. We advise you to contact us. Read our blog .
The UK government has introduced an employee retention program to assist firms that keep staff on payroll but are not working. The furlough scheme pays out 80% of staff salaries up to a monthly cap of £2,500, but staff must not work. A parallel scheme to the same amount has been opened to self-employed workers. Loan guarantees have been made available for businesses, and the smallest of businesses are eligible for grants. There is a one-year property-tax relief for certain sectors
While Australia has fared relatively well through the coronavirus crisis, it has not been immune to lockdown or disruptions to the global economy. The Australian government has introduced a wage subsidy to help firms make payroll. Businesses will be able to claim $3000 per month for eligible employees. Small businesses are also being supported with a tax-free cashflow boost of between $20,000 and $100,000. The government is also temporarily protecting debtors by temporarily increasing the threshold at which creditors can issue a statutory demand.
Italy has been one of the hardest-hit countries, and the industrial heartlands in the north has been the hardest-hit region. The country was relatively slow to unveil its support package for business and pressed hard for European Union Support. The government has now issued state guarantees on loans for up to 25% of annual turnover. Small businesses are eligible for short term financial guarantees aimed at financing working capital. The loans are part of the “Garanzia Italia” program to help Italy through this crisis.
The German government is well known for saving for a rainy day. That day has finally come and it has provided lots of funding to help its citizens and businesses through this crisis. Germany is providing cash grants to small businesses. €9,000 for companies with five employees of fewer and #10,000 for companies with 15 employees or fewer. The government is backing 90% on loans to small business and providing additional support for laid-off workers.ŌŌ