COVID -19 Small Business Cash Flow Loan (SBCS)

The Small Business Cashflow (Loan) Scheme (SBCS) has been introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19.  Businesses must have 50 or fewer full-time-equivalent employees to qualify.

Applications are now open and are open until 12 June 2020.  There are a number of terms and conditions attached to the loan which need to be read and agreed to.  Please ensure you read these carefully and understand these before accepting the loan.

The maximum size of the loan you can get depends on the number of full-time-equivalent employees calculated from wage subsidy funding.  It is $10,000 plus $1,800 per full-time-equivalent employee.  The maximum loan is $100,000.  Sole traders can receive a loan of up to $11,800.

You have the option to accept the full loan amount offered or a smaller loan. However you can only make one loan application and no amendments can be made after the loan has been applied for.

If for any reason you default on the loan, the interest rate could, based on current interest rates, be 10%.

To apply for the SBCS loan you will need to do the following:

  • Provide your New Zealand Business Number (NZBN)
  • Confirm your business or organisation is experiencing a minimum 30% decline in actual or predicted revenue from Jan 2020 to June 2020 as defined in the wage subsidy scheme.
  • Confirm your business or organisation existed before 1 April 2020.
  • Confirm your business or organisation is viable and ongoing, you have a plan to ensure it remains viable and ongoing, and you are keeping evidence we can use to check this.
  • Confirm you’ll use the loan to pay for core operating costs (including, but not limited to, rent, insurance, utilities, supplier payments, or rates).
  • Confirm the loan will not be passed through to the shareholders or owners of the business or organisation, for example, by a dividend or a loan to the shareholders or owners.
  • Confirm you have the appropriate authority to commit your business or organisation to this loan.
  • Confirm you are 18 years or over and have the legal right to apply for this loan.
  • Confirm you are aware we are not providing financial or other advice regarding this loan.
  • Agree to the loan terms.

If you have not yet applied for the wage subsidy, you’ll also need to provide your number of full-time and part-time employees.

Businesses and organisations will be able to apply for the SBCS loan through Inland Revenue.  In the ‘I want to’ section of myIR, select ‘Apply for a Small Business loan’. Businesses without a myIR account will need to create one to apply for the SBCS loan.

Please contact us if you have any queries or want to discuss this with us before applying.

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