Changes to the Small Business Cashflow Scheme
February 22, 2022
The Government announced on 21 February 2022, two important changes to the loan scheme.
For existing loans, it has removed the first two years’ interest accumulation for loans not repaid after two years. This means that interest will only ever apply from the beginning of year three.
The Government also announced a ‘top up loan’. For those who already accessed the loan, they are able to draw down an additional $10,000, with a new repayment period of five years and the first two years being interest free.
If a loan had not previously been drawn, one remained available until 31 December 2023, as long as the business met the criteria, including the prescribed revenue decline threshold: You must have experienced at least a 30 percent decline in actual revenue measured over a 14-day period in the 6 months before applying, compared with the same 14-day period one year ago.
If the revenue from the same period 1 year ago was affected by COVID-19 as well, compare with the same 14-day period two years ago.
Other changes announced by the Government, in addition to the loan scheme, were to provide another business subsidy and also to extend IRD’s ability for flexibility over extending tax payment dates and terms.
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