COVID-19 Small Business Cash Flow Loan Scheme (SBCS)

The New Zealand Government has introduced a Small Business Cashflow Loan Scheme (“SBCS”) to support businesses and organisations struggling because of loss or predicted loss as a result of COVID-19.

Businesses and organisations are eligible for the SBCS loan provided they are viable and plan to ensure they remain viable. Evidence to support this, such as cash-floe forecasts, may be required in the event of audit.

The loan provides for an amount of $10,000 plus $1,800 per full time-equivalent employee. The maximum loan is calculated based on the COVID-19 wage subsidy you received (or would have received if you had applied for it), divided by $7,029.60 to determine the number of employees.

Interest of 3% will be charged beginning from the date the loan is provided; however, interest will not be charged if the loan is fully paid back within one year.

The loan is administered by Inland Revenue and applications are open between 12 May 2020 to 12 June 2020 inclusive through MyIR.