Small Business Cashflow Loan update

Earlier this week, the Government announced the extension of the small business cashflow loan scheme to 3 years. Applications for the loan can now be made until 31 December 2023.

In addition following changes will be made to the current scheme:

  • 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.

At this stage, all other aspects of the loan scheme remain in place, including:

  • 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.

Please get in touch with us if you have any questions.

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