|Small Business Cash Flow loan (SBCS) – applications opened 12 May 2020
The Small Business Cash Flow (Loan) Scheme has been introduced to support business and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19.
Applications open 12 May 2020 to 12 June 2020 inclusive.
The scheme will provide $10,000 and an additional $1800 per equivalent full-time employee, up to $100,000 to small and medium businesses who are eligible.
1. Wage Subsidy Scheme criteria applies
2. Businesses with 50 or fewer full-time equivalent staff members
3. Your business must be viable
To be eligible for the SBCS loan your business or organisation needs to be viable and you must have a plan to ensure it remains viable. This generally means the directors or owners have good reason to believe it is more likely than not the business or organisation will be able to pay its debts as they fall due within the next 18 months.
You must keep any evidence of the business or organisation’s ongoing viability at the time of requesting the loan, as IRD may audit your application.
Evidence might include, for example:
Maximum SCBS loan size
The maximum size of the loan depends on the number of full-time equivalent employees calculated from wage subsidy funding.
How to apply
Business and organisations will be able to apply for SCBS loan through myIR.
Navigate to the “I want to” section of myIR, select ‘Apply for a Small Business loan’.
Please note we cannot apply on your behalf. The SBCS must be applied for through your myIR account. If you do not have one you will need to create one before you can begin this process.
Repaying the loan
You will have 5 years (60 months) to pay off the loan. Later this will include the ability to set up instalments.
Loans will be subject to an annual interest rate of 3% from the date it is provided. During the loan period, the following general rules apply:
Click here for more information.
If you require any assistance with this please do not hesitate to contact us.