Financial Support During Omicron
The Government has announced additional financial support for businesses experiencing cashflow pressure as a result of COVID-19.
- A further $10,000 top-up to the IRD loan or Small Business Cashflow Scheme (SBCS)
- 3 new fortnightly COVID-19 Support Payments (CSP)
- An extension of IR’s ability to remit penalties and interest.
Small Business Cashflow Scheme (SBCS)
The SBCS base loan will be increased to $20,000 (from $10,000). This means the amount that can be borrowed will be $20,000, plus $1,800 per full-time equivalent employee (up to 50 employees). The loan repayment period remains 5 years.
Existing borrowers who already have a loan (and have not defaulted on this loan) will be able to apply for a top-up loan. They can borrow an additional $10,000 plus any amount they did not borrow in their initial loan. The top up loan can be drawn down as a lumpsum or as up to 4 smaller instalments over time before the end of the scheme on 31 December 2023.
COVID-19 Support Payment Introduced
A new targeted COVID-19 Support Payment (CSP) was announced for businesses struggling with revenue during the Omicron outbreak.
The CSP is a payment to help support viable and ongoing businesses or organisations which have experienced a 40% or more drop in revenue.
- Three fortnightly CSPs will be available with applications opening for the first payment at 8am on 28 February 2022 for the period starting from 16 February 2022.
- Each CSP will be $4,000 per business plus $400 per full-time employee (FTE), capped at 50 FTEs or $24,000.
- The maximum size of the CSP your business or organisation may be eligible to apply for depends on the number of FTEs you have, and your level of revenue.
- Businesses or organisations with low revenue will have their payment capped at 8 times their actual decline in revenue.
For further information regarding eligibility click here.
Applications can be made via MyIR.