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.
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