Small business cashflow loan scheme
On Friday afternoon Grant Robertson announced the Government will provide interest-free loans for a year to small businesses impacted by COVID-19, to support their immediate cashflow needs and meet fixed costs.
Key takeaways:
- The Small Business Cashflow Loan Scheme will provide assistance of up to $100,000 to firms employing 50 or fewer full-time equivalent employees
- The scheme will provide $10,000 to every firm and in addition $1800 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.
- The scheme will be administered by Inland Revenue who will be taking applications from the 12th of May, and will pay out very shortly thereafter
If you would like to discuss what this means for you, please give enable business a call or email.
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