Small Business Cashflow Scheme (SBCS) - extended until 31 December 2023


The Small Business Cashflow Scheme has been in place since May 2020 and has now been extended until 31 December 2023.

Small to medium businesses my be eligible for a loan with a term of 5 years (first year interest free then 3%) if they meet the eligibility criteria below: 

Your business must have 50 or fewer full time equivalent employees

If you are part of a commonly owned group, your commonly owned group must have 50 or few full time equivalent employees

You need to have been in business for 6 months

Decline in Revenue

You must have experienced at least a 30% decline in revenue measured over a 14 day period in the 6 months before applying compared with the same 14 day period of a year ago, or:

(a) if revenue from the same period of a year ago was affected by Covid 19 compared with the same 14 day period of 2 years ago or

(b) if your business was not in existence a year ago (or if (a) above applies-2 years ago) compared with the same or similar period in the previous month. 

Your 20% decline in revenue relating to the period referred to above has to be due to the impact of Covid 19 and you will hold information on file to verify this for audit purposes. 

Your business must be viable and have a plan to ensure it remains viable

This generally means you have good reason to believe it is more likely than not the business will be able to pay its debts as they fall due within the next 18 months. You must keep any evidence of the business's ongoing viability at the time of requesting the loan as IRD may audit the application.

Confirm they will use the funds for core operating costs

Enter into a loan contract with the Government

Second Loan

Businesses that have fully repaid their loan before the end of 2023, may be able to re borrow one more time. They will need to meet the other eligibility criteria at the time they apply to re borrow. 

 

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Please note: The above E-newsletter notes and the related articles on our website are of a general nature and therefore we urge clients who may be affected by these changes to contact us to discuss your specific circumstances before making any changes or drawing any conclusions.

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