Changes to the Small Business Cashflow Loan Scheme
Posted on 23 Feb 2022
February 2022 Changes have been made to the Small Business Cashflow Loans Scheme to increase the amount of funding available to eligible businesses through the introduction of a 'top up' loan. The top up loan will allow those firms that have already accessed a loan to draw down an additional $10,000 with a new repayment period of 5 years and the first 2 years being interest free. Cabinet has also agreed to remove the first 2 years of accrued base interest from all borrowers who have, or will, take out a loan under the scheme. This change will mean interest will only start accruing at the beginning of year 3. If your business was hit by a revenue decrease due to COVID-19 and the associated lockdowns you can apply for the Small Business Cashflow Scheme for a loan - the terms are excellent, it's backed by the Government and many businesses will be eligible. Applications are open until 31 December 2023. The loan size is also contingent on business size The most a firm can borrow is $100,000, plus the new $10,000 top-up. Is your business eligible? To be eligible for the loan, your business must:
- Your business must have 50 or fewer full-time-equivalent employees (FTEs)
- Have been operating for at least 6 months
- Have experienced a revenue drop of at least 30% over a two-week period
- Be viable - we can help you produce evidence of this.
You can use the loan on any core operating costs, including rent, insurance, utilities, rates and supplier payments. You can read more details about eligibility here on the Inland Revenue website. This is a good opportunity to get low-cost funding to support your business's recovery and growth in 2022 and beyond.
