Applications for Small Business Cashflow (Loan) Scheme Extended

17 February 2021

In May 2020, the Government introduced the Small Business Cashflow (Loan) Scheme (“SBCS”) to support businesses and organisations that were struggling due to the effects of COVID-19. The application period for the SBCS loan has now been extended and businesses have until 31 December 2023 to apply.

For your business to be eligible for the SBCS loan, you will need to:

  • Employ 50 or fewer full-time equivalent (FTE) employees.
  • Have been in operation for at least six months before applying.
  • Have experienced a 30% decline in revenue as a result of COVID-19, over any 14-day period in the previous six months, compared with the same 14-day period a year ago.

Each eligible business can borrow $10,000 plus $1,800 per FTE. The maximum loan obtainable is $100,000 (for a business with 50 FTEs) and only one amount can be drawn down.

Loans will be interest free if they are paid back within two years. After that, the interest rate will be 3% for a maximum term of five years. No repayments are required in the first two years.

Businesses that have fully repaid their loan prior to 31 December 2023 can re-borrow one further time, provided they meet the eligibility criteria at the time they apply to re-borrow.

Applications for the loan can be made through the myIR section of Inland Revenue’s website.

you require any assistance assessing your business’ eligibility or applying for the SBCS, please contact your adviser or get in touch with the Findex Tax Advisory team.

Crowe Global is a leading international network of separate and independent accounting and consulting firms that are licensed to use “Crowe” in connection with the provision of professional services to their clients. Crowe Global itself is a non-practicing entity and does not provide professional services to clients. Services are provided by the member firms. Crowe Global and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

© 2021 Crowe Global

Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd.

Services are provided by Findex NZ limited an affiliate of Findex (Aust) Pty Ltd

© 2021 Findex (Aust) Pty Ltd.

Findex NZ Limited (Findex), trading as Crowe

This document contains general information and is also not intended to constitute legal or taxation advice. If you need legal or taxation advice, we recommend you speak to a qualified adviser.

While all reasonable care is taken in the preparation of the material in this presentation, to the extent allowed by legislation [insert name of entity] accept no liability whatsoever for reliance on it. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. [insert name of entity] assumes no obligation to update this material after it has been issued. You should seek professional advice before acting on any material.

© Findex Group Limited 2021. All rights reserved

February 2021