The Government will provide interest free loans for a year to small businesses impacted by the COVID-19 economic shock to support their immediate cashflow needs and meet fixed costs.
The small business cashflow loan scheme will provide $10,000 to every business (including sole trader and self-employed workers) and $1,800 per equivalent full-time employee.
That means if a business has three full-time equivalent workers, it would receive $15,400 – $10,000 as a base loan and $5,400 for three employees.
Loans will be interest free if they are paid back within a year. Otherwise, interest will be 3% pa for a maximum term of 5 years. Repayments are also not required during the first two years.
Eligibility criteria is the same as for the Wage Subsidy and will be administered by IRD.
Applications will be open for one month starting 12 May 2020.