COVID-19 small business cashflow scheme announced
5 May 2020
The Government has announced a COVID-19 Small Business Cashflow Scheme, which will provide interest free loans for a year to small businesses impacted by the COVID-19 economic shock.
The scheme is for eligible firms with 50 or fewer employees and will provide $10,000 to every firm plus $1,800 per equivalent full-time employee.
Loans will be interest free if they are paid back within a year. The interest rate will be 3% for a maximum term of five years. Repayments are not required for the first two years.
The eligibility criteria are the same as for the Wage Subsidy Scheme. Businesses will also have to declare that they are a viable business, they will use the money for core business operating costs and enter into a legally binding loan contract.
Businesses will be able to apply for loan payments through Inland Revenue, with applications being taken from 12 May.
Find out more and use the cashflow loan calculator on the IR website HERE