Deadlines are approaching for two of the Government’s business support schemes.
The Small Business Cashflow Loan Scheme
Businesses that are struggling due to a loss of actual or predicted revenue as a result of Covid-19, can apply for loans of $10,000 plus $1,800 per full-time-equivalent employee up to a maximum $100,000.
The scheme is available to businesses with 50 or fewer employees.
The annual interest rate will be 3% beginning from the date of the loan being provided. However interest will not be charged if the loan is fully paid back within one year. Inland Revenue will administer the payments and repayments of this scheme.
Applications must be made by June 12th
Read more on the terms and conditions on the IRD website
The Wage Subsidy Scheme
The wage subsidy scheme allows you to apply to cover the wages of your employees over a 12 week period. You can't apply for the same employee twice. The current scheme is for businesses that have had a 30% revenue drop attributable to the COVID-19 outbreak. Business that receive the subsidy must:
- Use best endeavours to pay at least 80% of each named employee's normal wages or salary for the duration of the subsidy
- Pass on at least the full amount of the subsidy claimed, to the employee
More details on eligibility and obligations are on the Work and Income website.
Applications for the wage subsidy scheme close on 9 June 2020.
The Wage Subsidy Scheme Extension
The wage subsidy scheme is being extended for businesses that have experienced a 40% decline in revenue (as per the latest change announced on 5th June) for the 30 day period prior to application (and as compared to a comparable period). The extension provides a further 8 weeks of payments for employers and self-employed individuals who meet the eligibility criteria.
Applications for the extended scheme are not open until 10th June and will close on 1st September.
If you are looking to apply for the wage subsidy or a cashflow loan, talk to us.
We can help you prepare the figures for your applications.
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