The Government has announced a Small Business Cashflow Loan Scheme, with applications open now until 12 June 2020 (at this stage).
How much can I borrow?
It allows a business with under 50 full time staff to apply for a loan of $10,000.00 plus $1,800.00 per employee up to a maximum of $100,000.00.
What are the conditions?
The loan is interest free if it is repaid in the first 12 months, otherwise interest at 3% is charge over the whole loan term (including the first 12 months) with a maximum loan term of 5 years.
Repayments are not compulsory in the first 24 months - after 24 months you will be required to make principal and interest payments.
How do I qualify?
To be eligible your business either needs to have applied for the wage subsidy or been able to i.e. you are able to show a drop in income of 30%
You must also be able to show that your business is viable and you have a plan to ensure it remains viable. That plan can include current financials or a cashflow forecast.
To apply go to www.ird.govt.nz
Other lending
The loan is not secured against the business assets. If you have existing loans with a bank or other lender, you need to consider whether you have any obligations in those loan agreements which require consent to entering into other lending.
Any questions? [Enable JavaScript to view protected content] and we’ll get you sorted.
