The Government has announced it will provide interest-free loans for a year to small and medium businesses impacted by the COVID-19 economic shock to support their immediate cashflow needs.
The Small Business Cashflow Loan Scheme (SBCS) provides assistance to firms which are struggling because of loss of actual or predicted revenue as a result of COVID-19, and employ 50 or fewer full-time-equivalent employees.
Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee.
SBCS loans are interest-free if they are paid back within a year. After that, the interest rate will be 3% for a maximum term of five years. Repayments are not required for the first two years.
Applications are open from 12 May to 12 June 2020 and the scheme is being managed by Inland Revenue.