An update on COVID-19 business support provisions
2nd COVID-19 Support Payment opened on 14 March
A 2nd COVID-19 Support Payment (CSP) opened on 14 March and a 3rd payment will open on 28 March.
The period of time each CSP will cover are:
- For the 1st CSP, businesses will need to show their income is 40% lower in a 7-day period any time between 16 February 2022 and 4 April 2022, compared to a typical week between 5 January and 15 February in either 2021 or 2022.
- For the 2nd CSP, businesses will need to show their income is 40% lower in a 7-day period any time between 7 March 2022 and 4 April 2022, compared to a typical week between 5 January and 15 February in either 2021 or 2022.
- For the 3rd CSP, businesses will need to show their income is 40% lower in a 7-day period any time between 21 March 2022 and 4 April 2022, compared to a typical week between 5 January and 15 February in either 2021 or 2022.
- The option for businesses to compare their income drop to a typical week in 2021 will be available from 14 March.
Self-employed people who have received the Ministry of Culture and Heritage’s one-off emergency grant for self-employed people will be able to apply for the 2nd and 3rd CSPs.
For more information, visit:
https://www.ird.govt.nz/covid-19/business-and-organisations/covid-19-support-payment
Small Business Cashflow Scheme ‘top-up’ loan
The Small Business Cashflow Scheme (SBCS) was introduced by the IRD to support small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19. Applications are open until 31 December 2023.
The IRD will administer the payments and repayments of this scheme. If your business or organisation is eligible and you submit an application through myIR, you may be entitled to a loan.
In February 2022, the Government announced that the SBCS base loan would soon be increasing to $20,000 (from $10,000). This means that for new loans 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 (60 months).
Existing borrowers will also benefit from this change as they will be able to apply for a top up loan of $10,000, plus any amount they were eligible for but did not take in their initial loan. This will be open for applications from 21 March 2022.
The first 2 years of existing and new loans will be interest-free provided the loan is not in default. Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period.
This change will take effect from 21 March 2022.
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Phone: 06 833 6295