The Small Business Cash Flow (Loan) Scheme
Extra funding administered by the IRD is now available for businesses with 50 or fewer full-time equivalent employees who are struggling because of a loss of actual or predicted revenue as a result of COVID-19. This scheme makes a one-off loan available to eligible businesses, a welcome helping hand to those businesses that need it.
The Small Business Cash Flow (Loan) Scheme (SBCS) provides for a maximum loan of $10,000 plus $1,800 per full-time equivalent employee to be taken out interest-free if the loan is paid back in full within one year. If the loan is not paid back within the year, annual interest is incurred at a rate of 3% from the beginning date of the loan being provided.
This scheme is open for applications for one month only, from the 12th of May 2020 to the 12th of June 2020 inclusive. Should you feel that this is an option you would like to explore, our advice is to talk to us first as there are a variety of conditions associated with lodging such an application and we stress the point that unlike the Wage Subsidy, this is a loan and must be paid back. An analysis of your business performance, including a cash flow projection, may be warranted before embarking upon such funding options.