The Government launched the Small Business Cashflow Loan Scheme (SBCS) 2020 to assist small-to-medium businesses affected by COVID-19.

 

After the initial launch of the scheme, the Government extended the application period, expanded eligibility for the scheme, and announced further changes around the interest application and easing of restrictions on how the loan can be used.

 

Businesses employing up to 50 full-time staff may apply to the Inland Revenue Department for loans of $10,000 plus $1,800 per employee. The loans:

 

• accrue interest at the rate of 3% for a maximum term of five years
• will not be liable for interest if repaid within two years
• require no repayments for two years, although voluntary payments can be made at any time.

 

A new top-up loan will allow firms that have already accessed a loan to draw down an additional $10,000 with a new repayment period of five years, the first two years being interest-free.

 

The SBCS is open for applications until 31 December 2023. 

 

In addition to the SBCS scheme, there have been other support payments introduced in late February 2022. This is to aid businesses struggling with revenue during the Omicron Outbreak and as recongition of the financial challenges faced by businesses as we move into the next phase of the pandemic. 

 

These support packages are known as Covid 19 Support Payments (or CSPs) and as had been the case with the Resurgence Support Payments (RSPs) requires that an applicant see a reduction in income of 40% or more as a result of the following:

 

• The widespread presence of Covid 19 in the New Zealand community.
• The legislative public health measures taken in order to reduce the spread of Covid 19. 
• Any business circumstances that are, or are reasonably likely to be a consequence of the above. 

 

There will be three fortnightly CSPs available with applications currently open for the first payment covering the period from 16 February 2022. Each CSP will be $4,000 per business plus $400 per Full Time Employee (FTE) capped at 50 FTEs or $24,000. 

 

Applications can be processed online but businesses must ensure that they are able to easily prove their drop in revenue over the period. 

 

We understand this is a busy time for everyone and it can be stressful operating with Omicron now in the community. We are here to chat if you'd like to know more about any of the support on offer or to go over strategies for staying one step ahead of the pandemic. 

 

Get in touch, we'd love to talk!