The Small Business Cash flow (loan) Scheme (SBCS) has been introduced to support small to medium businesses struggling because of loss of revenue as a result of COVID-19.
This adds to a number of changes the Government has made to assist small to medium businesses through this time.
The scheme will available to businesses who employ 50 staff or fewer.
The scheme will provide $10,000 to every business and in addition $1,800 per equivalent full time employee. The total loan is up to a maximum of $100,000.
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.
Inland Revenue will administer the payments and repayments of this scheme to provide immediate support to businesses that have been adversely impacted.
Applications are expected to be open from May 12.
Businesses will apply for the loan payment through myIR on the Inland Revenue website.