As we find ourselves in Alert Level 2 and 3 depending on where you’re based, we would like to summarise the different types of financial support available to help you, your business and employees in times of difficulty and help you recover from the effects of COVID-19.
All of these COVID-19 support initiatives have eligibility requirements that must be met.
More information about a new Wage Subsidy for employers and self-employed people throughout New Zealand will be available today. This is to help businesses whose revenue has reduced because of Covid-19 Alert Level 3 or above so they can keep paying their staff. Please keep checking this website.
Resurgence Support Payment
The Resurgence Support Payment (RSP) is for businesses or organisations with reduced revenue due to a COVID alert level increase to Level 2 or higher. Applications can be made in myIR.
Resurgence Support payment is available now and applications are open until 22 March 2021.
Learn more about the eligibility and which businesses can apply for this support.
Short Term Absence Payment
This is available for businesses, including self-employed people, to help pay employees who cannot work from home while they wait for a COVID-19 test result.
You can claim a one off payment of $350 for each eligible employee. Find out how to apply here.
Leave Support Scheme
If you, or your staff have been told by a health official to self-isolate and cannot work from home, you can apply for the COVID-19 Leave Support Scheme. This support will be paid as a lump sum covering two weeks (you can reapply if required).
Under the changes to this scheme in 2020, businesses are no longer required to show an actual or predicted revenue drop or that their ability to support an employee was negatively impacted by COVID-19, to be eligible to access this payment.
For eligibility criteria and how to apply see here.
Small Business Cash Flow Loan Scheme (SBCS)
Government will provide loans to small businesses, including sole traders and the self-employed, impacted by COVID-19 to support their cash flow needs. Applications have been extended and are now open until 31 December 2023. You can apply through myIR.
For eligibility criteria please click here.
Tax and ACC Support
If you’re having difficulties meeting your tax obligations due to COVID-19, Inland Revenue has various support schemes and options to help. Please click here for more information.
If you are having trouble making ACC payments, ACC has guidance to help. if you are no longer in business, it’s also a good idea to let ACC know. Please click here for more information.
Business Debt Hibernation
Business debt hibernation helps companies, trusts, and other business entities affected by COVID-19 to manage their debts. Applications are open until 31 October 2021.
Find out more here.
Business Finance Guarantee Scheme
More small and medium-sized businesses may be eligible for this scheme, with a simplified and expanded scheme now in place.
Participating lenders can provide new loans, increased limits to existing loans or a revolving credit facility to eligible businesses. The scheme supports lenders by government taking on the default risk of up to 80% of the loan.
Find out more here.
Please do not hesitate to contact us if you have any questions about the above available initiatives and we’ll be happy to help.