You might recall from one of our previous communications (linked here), that there were a range of supports available for businesses and individuals adversely affected by COVID-19.
As we are now coming up to 2 years since these supports were first made available by the Government, we would like to provide you with important reminders relating specifically to the Small Business Cashflow Support Scheme (SBCS).
If you have an existing loan coming to the end of its second year
- After the first 24 months of loan you’ll be required to make regular payments for both the principal and interest. The Inland Revenue (IR) will send a you payment schedule with the payment dates and amounts when regular payments are required to be made.
- The first 2 years of loans were interest-free, however, from the first day of the third year an interest rate of 3% per annum will automatically apply on the remaining balance of your loan. If you repay your loan before the end of the 2nd year you will not be charged any interest.
- You will have 5 years (60 months) to pay off your loan.
Thinking about applying for a new loan?
- As of March 2022 the Government announced that the SBCS base loan would increase from $10,000 to $20,000. This means that you could apply for a new loan up to this amount, plus $1,800 per full-time equivalent employee (up to 50 employees). Existing borrowers that have not yet taken advantage of this top up can also still apply.
- If your business or organization has been granted a SBCS loan and repaid it in full before the end of 2023, you may be able to re-borrow one more time. You will need to meet the eligibility criteria outlined in the IR website at the time you apply to re-borrow.
Have questions? We are here to help.
Get in touch with us today and let’s make sure you take advantage of all the support your business currently has access to. One of our friendly Client Advisors will be able to guide you and answer any questions you may have.
Together we can achieve more.