The Small Business Cashflow Loan Scheme has been extended with new details and requirements –
• Currently no interest is charged if the loan is repaid within one year. This will be increased to two years.
• Currently the loan can only be used for core operating costs. This will be broadened so that the loan can be used, for example, on capital expenditure.
In addition applications for the loan can now be made until 31 December 2023, an extension of three years.
Organisations and small to medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.
The Small Business Cashflow Loan Scheme (SBCS) was introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19.
• It is for businesses with 50 or fewer full-time-equivalent employees.
• They must have been in business on 1 April 2020 and have experienced a 30%decline in revenue as a result of COVID-19 restrictions.
• The maximum amount that can be borrowed is $10,000 plus $1,800 per full-time-equivalent employee and only one amount can be drawn down.
• The loan period is for five years and interest rate is 3% from the date of the loan being provided.