COVID-19: Small Business Cashflow (loan) Scheme extended
On 5 July 2020, the Revenue and Small Business Minister, the Hon Stuart Nash, announced that the Small Business Cashflow (loan) Scheme (SBCS) has been extended until the end of 2020. Applications opened on 12 May 2020 and can now be submitted up to and including 31 December 2020.
The Minister noted that as at 3 July 2020, 90,485 small businesses had applied for more than $1.5 billion of loans since 12 May. The average value of each loan was around $16,700. Most applications were from industries in construction, accommodation, restaurants and cafes, retail trade, transport and manufacturing.
Terms and conditions of SBCS – overview
- Loans are interest free if repaid within a year.
- After one year the interest rate is 3%, from the date of draw-down, for a maximum term of five years.
- Repayments are not required for the first two years.
- Small to medium businesses employing 50 or fewer staff who were eligible for the original wage subsidy are eligible to apply for the one-off loan.
- The loan amount is $10,000 plus $1,800 per equivalent full-time employee, up to a maximum amount of $100,000.
More information is available at www.ird.govt.nz/covid-19/business-and-organisations/small-business-cash-flow-loan
Source document: Beehive
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