If your business is still grappling with the impact of the lockdowns, the Government has just announced a couple of tweaks that could really help:
The wage subsidy extension eligibility has been changed so your business now needs to demonstrate a 40% (rather than 50%) income drop in a 30-day period within the 40 days of submitting your application.
The Small Business Cashflow Loan Scheme has had its deadline extended. Over 70,000 small businesses have already received money from this scheme and you now have until July 24 to apply.
We can work with you to do the application on either of these Government assistance packages.
What’s the change to the extended wage subsidy?
The majority of our clients made use of the Government’s initial wage subsidy scheme, and in mid-May it was extended for companies that were still struggling. Now the extended subsidy has been changed to make more businesses eligible.
Your business can receive another eight weeks of the wage subsidy if:
- You can show a 40% loss in revenue,
- In a 30-day period,
- During the 40 days prior to applying,
- Compared to same period in 2019.
The lower-revenue period needs to start after May 10, and you’ll need to meet some of the same employer obligations as for the first wage subsidy.
It’s estimated these changes will make an extra 40,000 businesses eligible for the extended subsidy, so if you’re one of them, talk to us today. Applications will begin from Wednesday June 10, although you can only apply for the subsidy after 12 weeks of receiving the first wage subsidy.
What about the loan?
The Small Business Cashflow Loan Scheme has been extended with an extra 42 days added to the application deadline, taking it out to July 24, 2020. To be eligible, your business must be viable – we can help you demonstrate this to Inland Revenue. You can use the Inland Revenue’s calculator to work out how much you could borrow.
The loan scheme is a pretty appealing one: a cash injection of $10,000 plus another $1,800 per staff member. The loan is interest-free for the first year, then interest is 3% for up to a five-year term. No repayments are required for the first two years. There’s been massive uptake of this scheme, with over 70,000 businesses already having received money and thousands more applications under way.
How do you apply for one or both of these schemes?
Applications will go through inland Revenue. If you want to apply, call us when you get a chance and we can assist/walk you through your application. We’ve already completed many successful applications and we can quickly pull together all the information you’ll be required to provide.
Don’t forget there are also other options to help with your cashflow. We’re here to help and we can talk you through which options could be right for your business.
From the team at SME Financial.