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Are you eligible for the Small Business Cash Flow Loan Scheme?

Spike

Has your trade business been negatively affected by COVID-19? If you haven’t already, and could do with some extra cash to get you through the next few months, make sure you apply for the Government’s Small Business Cash Flow Loan Scheme (SBCS) before the 12th of June.

This scheme allows small businesses impacted by the economic shock of COVID-19 to access interest-free loans for a year. You can receive assistance of up to $100,000 if you employ 50 or fewer full time employees, made up of $10,000 per business and an additional $1,800 per full time employee.

If you pay the loan back within a year, it’s completely interest-free, and if you pay it off within a maximum of 5 years, the interest rate will be 3% – repayments also won’t be compulsory for the first two years.

So if you qualified for the Wage Subsidy Scheme and you can provide a declaration that your business is still viable and the money will be used for business operating costs, then this one’s for you. Once you’ve been approved, the payment will be made within five days.

If you’re self-employed or a sole trader, the good news is that you could also be eligible for this loan scheme – there’s up to $11,800 there for you to borrow.

Want to know more? Not sure if your business qualifies? Our mates over at Haven Accounting can help you out so give us a call or get in touch with them directly at accounting@haven.co.nz and we’ll team up to get you sorted!