Just in case you had forgotten we are still in the midst of Covid-19 and it is time for yet another update. This time the Government has announced changes to the Small Business Cashflow (Loan) Scheme.
A summary of changes are as follows:
- Originally the ‘no interest’ period was for 1 year. This period has now been extended to 2 years so no interest will be charged if the loan is repaid within 2 years.
- Some of the restrictions around how the loan can be used have eased. As well as spending on core operating costs, businesses are now able to choose to use the loan to invest in their business, helping them to adapt to the impact of Covid-19
- The date to be able to apply for the loan has been extended by 3 years – you can now apply up until the 31 December 23.
If you already have the Small Business Cashflow (Loan) your existing loan terms and conditions will automatically be updated to the include the above changes. The Government will update these terms prior to 31 December 20 and will get in touch to let you know once they’ve made the changes.
A reminder of the eligibility criteria:
- Available for business with 50 or fewer full-time equivalent employees
- Your business still needs to meet the 30% decline in revenue criteria as a result of Covid-19 restrictions and must have been in business on 1 April 20
- The loan maximum amount is $10,000 plus $1,800 per full-time equivalent employee and can only be applied for once.
Please remember these updates are current as of 20 November 2020. To ensure you have the latest information please check the IR website here
If you would like to discuss any of this information please give us a call on 04 2329199 or leave your details below and we will be in touch.
