A pre-revenue business or organisation is one that has taken active steps to get market-ready, but has not begun trading yet.
They may have been eligible for the CSP if both of the following applied.
- They had had a minimum 40% drop in their ability to raise capital over a 7-day affected revenue period (7 consecutive days) because of one or more COVID-19 circumstances.
- They met the other CSP eligibility criteria.
Capital raising includes external funding raised by these businesses or organisation to get market-ready. External funding includes:
- debt funding (for example, bank funding and debt funding from external investors)
- equity funding
- grant funding
- fit-out contributions (for example, a landlord may contribute to assist in getting an applicant's business market ready).
Capital raising does not include:
- funding a self-employed person provides to their own sole trader business
- funding a shareholder (or other associated person) in a close company provides to that company. This point also applies to funding associated persons provide to other types of closely held businesses or organisations
- COVID-19 related government assistance payments (for example, the Small Business Cashflow Scheme loan).
Pre-revenue businesses or organisations need to keep records of how their ability to raise capital was impacted by one or more COVID-19 circumstance.