Has your business been affected by COVID-19? Do you know about the Small Business Cashflow Scheme? Here’s a quick summary:
There are some welcome changes to the Small Business Cashflow Loans Scheme (SBCS). Firstly, the funding amount available to qualified businesses through a top-up loan has been increased, allowing them to draw down an extra $10,000 with a new repayment period of five years and interest-free first two years. The interest rate will remain at 3% per year on the loan balance from the first day of the loan’s third year.
Businesses hit by COVID-19 lockdowns can apply for the Small Business Cashflow Scheme for a loan until 31 December 2023. The loan size depends on the business size, but currently, the maximum amount you can borrow is $100,000 plus $10,000 top-up. This equates to a $20,000 top up in total and $1,800 per full-time-equivalent (FTE) employee.
The top-up loan can be drawn down as a lump sum or up to four small instalments before 31 December 2023. The borrower will have two separate loans with their own 5-year term and a 2-year interest-free period.
To be eligible, your business must have 50 or fewer FTE employees and have been operating for a minimum of six months. Your business must have experienced at least a 30% revenue drop over two weeks and present evidence that the business is viable, and you must have a plan for how the business will remain viable during the period of the loan. Check out our quick video showing you how to calculate the 30% drop in revenue test https://www.youtube.com/watch?v=DLdFpPhMkhw.
*Just a note – the loan can be used on any operating costs such as utilities, rent, insurance, rates, and supplier payments.
The SBCS aims to support small to medium businesses and organisations that have lost revenue because of COVID-19. Grab this opportunity with open arms to get low-cost funding for your business recovery and growth.
If you need help with applying for the SBCS, just holler and we can give you a hand. Flick
us a message or give us a buzz and let’s get it all sorted!
Your Outside Team
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Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
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