This post is by Sheral Reddy, an chartered accountant and tax specialist at GECA Chartered Accountants. Call Sheral now for tax advice on your circumstances.

Small Business Cashflow Scheme Loan

The small business cashflow scheme was introduced in May 2020 to assist small to medium businesses who have been impacted by the Covid-19 pandemic.

On 21 March 2022, the loan amount has been increased to $20,000 from $10,000 plus $1,800 per full-time equivalent employee (up to 50 employees).

Please refer to the link below for eligibility criteria for applying for the small business cashflow loans or for a top up loan:

https://www.ird.govt.nz/covid-19/business-and-organisations/sbcs/maximum-loan-size

Although the loans are for a term of 5 years (60 months) from the date the loan is drawn down.  The first two years are still interest free and repayments are not compulsory for the first two years.

However, a lot of businesses are now receiving notifications from IRD if their two-year anniversary date is up or nearly here.  Please check your MYIR correspondences from the Inland Revenue relating to the Small Business Cashflow Repayment Plan that outlines the monthly minimum repayments required.

Please contact your GECA advisor now on 0800 758 766 if you don’t have access to your MYIR and require us to check when your repayment start dates are for the Small Business Cashflow loan.