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Changes to the Small Business Cash Flow (loan) Scheme

The Government has recently announced changes to the Small Business Cash Flow (loan) Scheme. 

Under the Small Business Cashflow Loan Scheme, “viable” businesses can get a $10,000 loan. The size of the loan can be extended by $1800 for every full-time equivalent employee the business has, up to 50 employees.

Initially available to 31 December 2020, business will now be able to apply for the loan up until 31 December 2023.

The interest free period on the loan has been extended from one year to two years. After two years, the loans will be subject to interest of 3% p.a.

Originally the loans were available for businesses to help them with their operating expenses. Now the criteria has been extended to allow businesses to use the loans to also invest in new plant and equipment. 

Do note that the loans still need to be paid back within five years.

It is estimated that a quarter of New Zealand businesses have taken advantage of the scheme, with lending totaling approximately $1.6 billion. 

If you have questions or would like to discuss your situation, get in touch! 


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