Small Business Cashflow Loan Scheme

12 May 2020

The Government has announced a new loan scheme for businesses with 50 or less FTE employees' to assist with payment of operating costs.

A business can borrow $10,000 plus $1,800 for each equivalent full-time employee up to a maximum of $100,000. 

There will be no interest if paid back within a year, otherwise 3% for up to 5 years, with no repayments required for the first 2 years.

The deadline for applications for this scheme has been extended from 12 June to 24 July

Applications can be made via a myIR account at IRD between 12 May and 24 July 2020 inclusive. 

Businesses will need to eligible for the wage subsidy as well as be able to declare that they are a viable business and have a plan to ensure it remains viable.


What does it mean to be a viable business? 

The IRD have indicated this generally means as a Director or Owner, you expect to be able to pay your debts as they fall due within the next 18 months. 

Evidence of viability will be required at the time of applying for the loan and this may include cashflow forecasts, business plans and financial statements, all of which we can help you prepare.

An application will require an NZBN.  This is a NZ Business Number and all NZ registered Companies will already have an NZBN.  If you don’t have one, you will need to apply for one before you apply for a SBCS loan.

Loans will not be subject to income tax or GST and you can claim as deductible expenditure the operating expenses paid for with the loan funds.


Am I eligible for the Government Small Business Cashflow Loan Scheme (SBCS)?


small business cashflow loan scheme


To discuss whether this loan would be suitable for you and your business or organisation, please contact your local BDO Advisor.

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