Government loan applications closing soon
29 May 2020
Applications for Loan support close 12 June
Government loans of up to $100,000 are still available for eligible businesses to help with cashflow but applications close on 12 June.
The Small Business Cashflow (Loan) Scheme was introduced to support businesses struggling because of losses of actual or predicted revenue as a result of Covid-19.
Organisations and small to medium businesses including sole traders and self-employed may be eligible. The qualifying criteria are the same as for the Wage Subsidy Scheme announced in March.
To qualify you must:
• Have 50 or fewer full time equivalent employees
• Be registered and operating in New Zealand
• Have actual or predicted revenue down 30% in any four week period between January and 9 June 2020
• Your business must be viable ie you must have good reason to believe the business will be able to pay its debts as they fall due in the next 18months
Eligible businesses are entitled to a one off loan. The loan amount is $10,000 plus $1,800 per full time equivalent employee, capped at $100,000.
The loan has a term of 5 years and the annual interest rate will be 3% beginning from the date of the loan provided. However interest will not be charged if the loan is fully paid back within one year.
If you require assistance or are not sure if you qualify contact us today.
Disclaimer:This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.