fbpx

    Phone consultation!

    Thank you for contacting Global Finance. One of our experienced advisors
    will contact you shortly.

    Govt stepping in to help Small businesses – $100k interest-free loans

    Financial assistance to small businesses affected by Covid-19

    Keeping New Zealand small businesses afloat

    As of the 1st of May 2020, the government has announced that small businesses that have been affected by covid-19 will now be eligible to apply for a new government loan scheme.

    How does it work?

    small-business-100k-loan

    A Government loan scheme has been set up to help businesses through the financial turmoil to meet financial measures through this unsettling period. It will mean businesses will get the cashflow they need to keep moving forward.

    Small business cashflow loan scheme (SBCS)

    Eligibility – Small to medium businesses with 50 or fewer staff will be entitled to apply. This includes sole traders and self employed

    Each business is eligible for $10,000 per company plus $1800 for each staff member.

    A company with 50 full-time workers will get $90,000 plus the initial 10,000 for the company itself. So, assistance can be provided of up to $100,000.

    The loan for the first year is interest free – any longer than that and its 3% interest with no repayments due for the first two years.
    The interest rate will be 3% for a maximum term of five years.

    The scheme is open initially for a month.
    The eligibility criteria is the same as for the wage subsidy scheme. Businesses need to declare that they are viable businesses. The money is for core business operating costs and enter a legally binding loan contract.

    Scheme will be administered by the I.R.D taking applications from the 12th May

    Operating expenses can include but not limited to rent, insurance, utilities, supplier payments or rates.

    Loan benefits cannot be passed through to shareholders or owners of the business by means of a dividend or a loan to the shareholders or owner.

    As always, getting the right business advice is important. – and that’s where Global Finance comes in. we can help with expert advice and insider knowledge and help you sort through your business financial relief options.

    Get in touch to book a free consultation with one of our specialist advisers.

    Airport Oaks Branch

     Opening Hours:

      • Monday – Friday 9:00 am- 7:00 pm
      • Saturday 12:00 pm- 6:00 pm

     

    Henderson Branch

     Opening Hours:

      • Monday – Friday 9:00 am- 7:00 pm
      • Saturday 12:00 pm- 6:00 pm

    Manukau Branch

     Opening Hours:

      • Monday – Friday 9:00 am- 7:00 pm
      • Saturday 12:00 pm- 6:00 pm