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 12^th of May 2020 to the 12^th 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.