COVID-19 Small Business Cashflow Scheme (SBCS)
The NZ Government has introduced the Small Business Cashflow (loan) Scheme (SBCS) to support businesses and organisations struggling because of loss of revenue as a result of COVID-19.
Tax agents will not be able to apply for the loan on behalf of business owners, but we may be able to assist you with your queries about the scheme.
Overview:
To be eligible to receive a one-off loan, a business or organisation must have 50 or fewer full-time-equivalent employees and be eligible for the Wage Subsidy Scheme. They must also have a sound plan to be viable and ongoing and hold information on file to verify this.
Check if you’re eligible: Eligible businesses and organisations , SBCS Eligibility Tool
In most cases, businesses will be entitled to a loan amount of $10,000 plus $1,800 per full-time-equivalent employee, to a maximum of $100,000.
Earlier IRD was taking applications from 12 May 2020 until and including 12 June 2020.
This has now been extended to 24 July 2020.
Most will receive funds within five working days.
IRD will administer the payments and repayments of this scheme.
Businesses should speak with their financial advisors before taking this loan.
The loan has a five-year term and must be repaid by 31 July 2025.
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 one year.
Repayments are not compulsory in the first 24 months.
Check out for more details:
Terms and Conditions for SBCS Scheme
Source: IRD
Contact us to know more.