Reformed Small Business Cashflow Loan Scheme
On 18th December 2020, the government announced new updates on SBCS Loan.
The Small Business Cash Flow Loan which supports organisations and small to medium businesses affected by COVID-19 has been extended till the end of 2023 to support businesses tackle the impact of Covid-19 which is far from gone around the globe.
It was from 12th May 2020 when people could start applying for the loans; originally the deadline to submit these applications was till 12th June 2020 which was then extended till 24th July 2020 to now it has been extended to and including 31 December 2023. This extension will provide much needed financial support to those struggling businesses that need some support to keep their business afloat till they have steady revenue.
These changes will take effect from 28th January 2021.
However, current eligibility criteria will remain in effect and businesses can continue to apply for the loan using the existing criteria.
Organisation and small to medium businesses including sole traders and self-employed may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.
If your business has 50 or fewer full-time equivalent staff, you may be eligible to receive a one-off loan. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee. The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within two years.
Overview:
The Small Business Cashflow (Loan) Scheme (SBCS) has been introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19. They must have 50 or fewer full-time-equivalent employees.
Inland Revenue will administer the payments and repayments of this scheme. Applications are open until 31 December 2023.
Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee.
The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within 2 years.
Click below to read Terms and Conditions.
Receiving and repaying the SBCS loan
To check whether you are eligible click here - SBCS Eligibility Tool, Eligible businesses and organisations
Source: IRD