Interest-free lending for your small business

Posted on 02 Feb 2022

Many small businesses, particularly in Auckland, are still struggling with the fallout from the pandemic. If your business was hit by a revenue decrease due to lockdowns, you can apply to the Small Business Cashflow Scheme for a loan, the terms are excellent, it's backed by the Government and many businesses will be eligible. You can apply to the Small Business Cashflow Scheme throughout this year and next year, right up to the 31 December 2023 deadline. How much can you borrow and what are the terms? Your small business can borrow $10,000, plus an additional $1800 for each full-time employee. Sole traders can receive a loan of up to $11,800.

• If you fully repay the loan within two years, you will pay no interest.
• If you take longer than two years to repay it, you'll be charged 3% interest for the whole term of the loan. This is an outstanding rate and will not be matched on a business loan by any bank.
• Repayments are not compulsory for the first two years, after which time you'll need to make regular principal-and-interest repayments.

For all the details about repayments, you can read more here. Is your business eligible? To be eligible for the loan, your business must:

• Have no more than 50 full-time employees
• Have been operating for at least 6 months
• Have experienced a revenue drop of at least 30% over a two-week period during lockdown
• 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. Get in touch and we can help with your application for this loan, providing evidence to Inland Revenue of your business's viability and eligibility. This is a great opportunity to get some low-cost funding to support your business's recovery and growth in 2022 and beyond.