Small Business Cashflow Loan - Repayment Information

Posted on 08 Jun 2022

For those that applied for the Small Business Cashflow Loan (SBCS) in 2020, the 2-year interest free period will be coming to an end during 2022. All letters and information from the IRD will be in myIR. We suggest you check in myIR for any repayment information you may have been sent. All businesses that received the first loan will start receiving letters advising that the interest will soon be charged to the loan and repayments should commence. If repayment is received before the 2-year anniversary then no interest will be charged. The IRD should be sending you a repayment schedule, with repayment starting 1 month after the anniversary. Loans drawn since the 2022 top up was available, will be interest-free for the first 2 years. This change will apply to new borrowers as well as to existing borrowers, provided there has not been any event of default on the SBCS loan. Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period. The loan repayment period remains 5 years (60 months). If you'd like to discuss this with us please give us a call to discuss the repayment and what other options may be available to you. More repayment information can be found on the IRD website here.