Saturday, April 13, 2024

Government Benefits For Small Business Owners

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Extension Of Canada Emergency Wage Subsidy And The Canada Emergency Rent Subsidy And Lockdown Support Beyond June 2021

Small businesses remain concerned despite government assistance

The Canada Emergency Wage Subsidy has helped more than 5.3 million Canadians keep their jobs, and the Canada Emergency Rent Subsidy and Lockdown Support have helped more than 154,000 organizations with rent, mortgage, and other expenses. The wage subsidy, the rent subsidy, and Lockdown Support programs are currently set to expire in June 2021. In order to bridge Canadians through the rest of this crisis to recovery, continued support is needed. To give workers and employers certainty and stability over the coming months:

  • Budget 2021 proposes to extend the wage subsidy, the rent subsidy, and Lockdown Support until September 25, 2021. It also proposes to gradually decrease the rates for the wage subsidy and rent subsidy, beginning July 4, 2021, in order to ensure an orderly phase-out of the programs as vaccinations are completed and the economy reopens.

Extending this support will mean that millions of jobs will continue to be protected.

The Retail And Hospitality Grant Scheme

For businesses in the retail, leisure and hospitality trades, the UK Government has announced both a cash grant of up to £25,000 as well as a business rates payments holiday in England for the 2020 to 2021 tax year.

These initiatives will be available to shops, restaurants, cafes, drinking establishments, cinemas, hotels and similar accommodations and live music venues in England.

The Retail and Hospitality Grant Scheme allows businesses in these sectors with a property that has a rateable value of £15,000 and under to receive a cash grant of £10,000, while properties with a rateable value of between £15,000 and £51,000 will receive a grant of £25,000.

The business rates holiday will apply automatically to your council tax bill in April 2020, while eligibility for the Retail and Hospitality Grant Scheme will be determined by your local authority.

As business rates are set at a local level, similar initiatives are being launched by devolved administrations across the UK find out more here.

Small Business Grants In Northern Ireland

The Established SMEs Funding section of Enterprise Ireland lists several ways you can get financial help for your small business if its already up and running and youre based in Northern Ireland.

It also offers High Potential Start-up Funding if your business idea has the potential to develop an innovative product or service for sale on international markets and the potential to create 10 jobs and 1m in sales within three years of starting up.

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Rural Business Investment Scheme Derry City And Strabane District Council

The fund supplies capital grants for non-agricultural micro, small and social enterprises in rural parts of Derry City and Strabane Council.

Potential applicants must go to a mandatory pre-funding workshop and be investment ready that means having a business plan, planning permission, match funding and quotations or tenders in place for capital grants before you apply.

The support includes 50 per cent funding and grants between £500 and £90,000 depending on the size or activity of the business and marketing grants from £500-£5,000 .

Business Finance in Northern Ireland

In addition to the grants mentioned above, we should also mention that there are a number of government managed SME funding available operated under the aegis of Invest NI, Northern Irelands inward investment agency. The agency oversees £186 million worth of debt and equity funding, beginning with seed stage through to Series A and, ultimately, equity funding. The main funds are:

Small Business Loan Fund

The NI Small Business Loan Fund gives loans between £10,000 and £100,000 to small businesses in Northern Ireland.

Growth Loan Fund II

A £30m loan fund designed to support export-focused Northern Ireland SMEs demonstrating growth or strong growth potential.

Growth Finance Fund

A £30m loan fund designed to support export-focused NI SMEs demonstrating growth or strong growth potential.

Equity funding

Co-Fund NI

Clarendon Fund Managers manages the £17.7m Co-Fund II on behalf of Invest NI.

Government Support For Businesses Affected By Coronavirus

The Small Business Administration offers disaster assistance to ...

Following the unprecedented impact of the coronavirus pandemic on both individuals and businesses around the world, the UK Government announced a package of relief measures which aim to help businesses which have been impacted or have had to close. Full and complete guidance can be found here.

As part of the Winter Economy Plan, Chancellor Rishi Sunak announced further measures to support businesses during the coronavirus pandemic. The Job Support Scheme and an extension of the Self Employment Income Support Scheme were both announced by the chancellor on the 24 September 2020.

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Do Employers Have To Offer Health Insurance

Employers that have 50 or more full-time or full-time equivalent employees are required to provide health insurance under the Affordable Care Act. Plans must offer minimal essential coverage that meets ACA standards and pay at least 60% of a participants medical expenses. Non-compliance with this law results in expensive penalties that are not tax deductible.

A Guide To Government Support For Small Businesses

Starting or growing a business is incredibly challenging. Fortunately, the government has a whole host of advice, support and funding for SMEs. Understanding and accessing it, however, is easier said than done.

In this article, weve rounded up the most important government help out there into one handy guide. Here, youll learn exactly what support is available to SMEs at a national and local level and find exactly how and where to access it.

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Extending The Canada Emergency Business Account

The Canada Emergency Business Account has provided interest-free, partially forgivable loans to more than 850,000 Canadian small businesses. In December 2020, the government increased the value of the loan from $40,000 to $60,000 to help small businesses bridge to recovery. If a business repays their loans by December 31, 2022, up to a third of the value of their loans will be forgiven. In further recognition of the ongoing pandemic, the government recently extended the application deadline for CEBA to June 30, 2021.

A small number of businesses have faced challenges accessing the program, including Indigenous and rural businesses. To make sure these businesses are not left behind, the government provides similar support through the Regional Relief and Recovery Fund and Indigenous Business Initiative. To make sure these businesses can continue to access support:

Local Help For Business

Struggling businesses say they dont qualify for government assistance

There are 38 growth hubs across the country, one for every Local Enterprise Partnership .

Businesses can connect with their local growth hub to access funding, advice and support.

LEPs are business-led partnerships between local authorities and local private sector businesses. They aim to drive economic growth and job creation, as well as upskill the workforce and improve infrastructure.

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Warehousing Of Tax Liabilities

Debts that are warehoused are subject to 0% interest for the warehousedperiod. The tax debt warehousing scheme wasfurther extended until 30 April 2022. No interest will be payable up to 30April 2023 and a reduced interest rate of 3% a year will apply from 1 May2023.

Find more information on the initiatives covering COVID-19 related tax debtsin RevenuesInformation Booklet .

Are There Tax Benefits To Being A Woman

As you can see from the information above, there are many beneficial programs and supports that make it worthwhile being a woman in business today however, tax breaks do not factor into the equation. Neither the federal nor state governments give any special consideration to women-owned businesses when it comes to the tax code.

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How Business Organizations Influences The Government

Organizations try to force the government to act in ways that benefit the business activities. Of Course, for that, an organization must go through legitimately.

But sometimes we see that organizations try to go over the line.

Anyways, these are the common methods that business organizations us to influence government policies.

Tax Benefits To Take Advantage Of As A Small Business Owner

Entrepreneurs and Small Business Owners to Benefit from Free Training ...

There are many obvious perks that come with owning your own business, including setting your own schedule, being your own boss, and having control over your career. But there are also many tax benefits business owners can take advantage of to maximize their profits.

Heres a quick guide that covers important tax deductions for your business.

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South East Creatives Top Up Grant

The Top Up grant is ideal for projects of £3,000 and £6,000, where South East Creatives could fund 35 per cent of your costs. The minimum grant that can be awarded is £1,000. The rest of the costs have to be paid from private funds and spent within one month of the grant being awarded.

If you are sole trader or company trading in the creative, cultural or digital sector this could be a great boost to your business perhaps bringing forward plans for some new equipment that you couldnt quite afford or buying in expertise to help increase your customer base.

Economic Injury Disaster Loan Advance

The name is dramatic, but this loan could provide you with a business-changing amount of money.

Small businesses can now apply for a loan advance of up to $10,000 to provide relief for plunging revenues. The funds will be accessible within days of the application, and the loan advance doesnt need to be repaid.

To apply, fill out this form.

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Carmarthenshire Rural Enterprise Fund

Rural businesses will get support from this fund. It will help develop new and existing premises for them with a view to creating new jobs. The grant will either be based on £20,000 per job created or up to the following intervention rates: small businesses 45 per cent and medium businesses 35 per cent. The maximum grant is £128,000 unless its an exceptional case where funding may be increased.

Wales Tourism Investment Fund And The Micro Small Business Fund

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The WTIF is provided by the Welsh Government in partnership with the Development Bank of Wales, bringing together both grant and commercial funding into one combined package of financial support. Its key objective is to finance capital investment projects in the tourism sector in Wales which will have a positive impact on both the sector and the Welsh economy.

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Best Small Business And Start

Grants and loans can provide vital funding for start-ups and small businesses in the UK. However, many entrepreneurs delay the application process or dont realise theyre eligible for financial support. But registering can take as little as two minutes, so its worth knowing your options. If youre looking to raise funding, here are the best finance opportunities on offer in the UK to help grow your business.

Small Business Grants In England

The Local Enterprise Partnerships Network website lists the 38 regional Growth Hubs. Theyve been set up to provide business funding, support and guidance in their local areas.

They make it easier for business owners to find the support they need by bringing together all of the available national and local business support in one hub.

You can search for business support available in your local area on the LEP Network website.

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Higher Wage Demands Than Pre

Another key finding of the report is the growing demand for higher wages. 51% of the business owners surveyed said that when they hire people, they are having to pay higher wages that before the health crisis.

The impact of inflation on small business recovery was also explored in the report. It found that 67% of small businesses fear that inflation will deter recovery. These concerns are even more significant amongst industries facing supply shortages and delays, such as wood and metal.

The research also points to a gloomy revenue outlook. 58% of small businesses are only earning half or less of their monthly revenues compared to before the pandemic.

Alignables research confirms that despite industries opening up as lockdown restrictions are lifted, turbulent times are still ahead for many small businesses.

With recruitment proving challenging, small business owners may have to be more creative with hiring efforts. Such creativity could include using social media to source potential candidates, conducting online interviews, and even considering virtual reality to show candidates what it is like to work for their business.

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Whats The Difference Between A Small Business Grant And A Loan

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A small business loan is money for your business youll have to pay back within an agreed timescale. This is different to a small business grant, which you wont be expected to pay back.

Some grants will be offered on the basis that you must also invest the equivalent amount in your business. For example, if youre given a £10,000 grant, youll need to have £10,000 to invest too.

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Coventry And Warwickshire Green Business Programme

The purpose of these grants is to invest in equipment that cuts down on carbon emissions within your business. Warwickshire District Council will fund up to 40 per cent, providing grants between £1,000 and £50,000. The grants are for installing energy efficient equipment like LED controls and renewable technologies.

How Can An Accountant Help Me Get A Grant Or Loan

Consulting a financial specialist will help you identify the right funding scheme for your business and boost your chances of gaining approval. If youre interested in applying for a business loan, an accountant will be able to determine your repayment capabilities and advise on the best finance option for you.

An independent financial adviser can also help you establish how much capital you need to generate, and how you will spend it once its in your account. During the consultation stages, you should meet to discuss your funding options and prepare for your application by organising any relevant paperwork, including your business plan.

If you found this article useful, then you might also find our article on small business crowdfunding informative, too!

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How Small Business Owners May Benefit From The $2 Trillion Federal Aid Package

The $2 trillion economic aid package unveiled Wednesday contains several provisions to help small businesses in the wake of the coronavirus pandemic.

Overall, small business groups are pleased some assistance is coming. But they also stress the package â which includes close to $400 billion in aid for small business owners â is still not enough to save Main Street.

âThis doesnât cure the crisis. Itâs a good start. But more support will be needed,â said Derek Peebles, executive director of the American Independent Business Alliance .

The provisions are also unlikely to save those small businesses that will have to come up with cash to stay afloat until they can actually get the governmentâsaid money in hand.

âThereâs no way many can keep going,â said John Arensmeyer, CEO of Small Business Majority, a national small business advocacy group.

Speed will be key to helping any small business survive, especially when it comes to dispensing the forgivable loans that will be available to owners who keep paying their employees during the crisis.

âWe anticipate small businesses will rush to apply for these loans. The government must make sure lenders are ready and able to deploy the cash,â Frank Knapp, Jr., president of the South Carolina Small Business Chamber of Commerce, said in a statement.

Hereâs a breakdown of the major provisions small businesses included in Congressâ aid package:

What Will A Deduction Save Me

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A deduction, or write-off, is a business expense that can help lower your taxes. For example, if your business made $75,000 last year but you invested $10,000 in new business equipment, you would deduct that $10,000 from your net income. That means when it comes time to pay your taxes, you would need to pay tax on only $65,000 instead of the full $75,000.

How much will that deduction actually save you on your taxes? Its important to weigh out the costs versus tax savings when youre making a business purchase. Luckily, we have a simple formula that can help you see the value of these deductions:

Business Expense x Tax Rate = Money You Save on Taxes

For example, if you spent $2,000 on a new camera for your business and your tax rate is 25%, your savings would be $500:

$2,000 X .25 = $500

If you dont know your tax rate, you can always visit to see the latest tax rates and brackets for the year. Keep in mind that if you are self-employed, you will also need to pay self-employment tax, which is a little over 15%.

Of course, you cant write off any expense as a business expense. According to the IRS, you should write off expenses that are ordinary or necessary . That doesnt mean you cant be creative when it comes to a tax deduction. Think broad. Just be sure you know and document the business purpose.

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Where To Find Business Grants

Below is a list of some of the most robust resources for finding grants that can aid your business:

  • is one of the top places to search for grants. The government site is filled with various grant and financing opportunities.
  • is the ultimate database for federal grants. You can search for grants by funding type, eligibility, category and agency. Be forewarned: Sorting through the database will require some effort, but the potential payoff is that you may find a grant opportunity that is perfect for your company.

In the wake of the coronavirus, there are resources, including federal and private funding sources, that are helping businesses cope with the drastic economic contraction that is affecting the world.

  • Economic Injury Disaster Loans are administered by the SBA and can provide businesses with working capital to pay employees, rent and other expenses.
  • In addition to government loans, companies like Verizon have created funds that provide grants to small businesses.

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