COVID-19

IRD| New criteria for Small Business Cashflow (Loans) Scheme (SBCS)

The eligibility criteria for small business cash flow loans for businesses impacted by Covid-19 has changed. See if these changes affect you.

Small Business Cashflow (loan) Scheme:

Eligible businesses and organisations which submit an application for a loan and meet the eligibility criteria may be entitled to a loan.

The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee: https://www.ird.govt.nz/covid-19/business-and-organisations/small-business-cash-flow-loan . 

The annual interest rate is 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within 2 years.

Applications for the SBCS loan have been extended until the end of 2023. Applications opened on 12 May 2020 and can now be submitted up to and including 31 December 2023.

Details for eligibility are as follows:

  • Your business must have 50 or fewer full-time-equivalent employees.

    • If you are part of a commonly owned group , your commonly owned group must have 50 or fewer full-time equivalent employees (an employee working 20 hours or more per week).

  • You need to have been in business for at least 6 months prior to making your application.

  • Your business or for profit organisation must have experienced  at least a 30 percent decline in revenue measured over a 14-day period due to the impact of Covid-19.

  • Be viable (have good reason to believe it is more likely than not the business or organisation will be able to pay its debts as they fall due within the next 18 months).

  • Have a plan to ensure it remains viable.

Businesses that have fully repaid their loan before the end of 2023, may be able to re-borrow one more time. They will need to meet the other eligibility criteria at the time they apply to re-borrow.


For further details for eligibility: click here

For further details regarding the Small Business Cashflow (loans) Scheme: click here

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