Government Small Business Cashflow Scheme Loan (COVID Loan)
Changes to the COVID loan are coming from 21 March 2022:
The loan will increase to $20,000 (was $10,000) + $1,800 per full time employee (up to 50)
The first 2 years will remain interest free (originally interest would be backdated to draw down if the loan wasn’t repaid within the 2 years)
What is not clear at the date of writing is whether the 2 year interest free period resets with a new drawdown, or if the first $10,000 loan still carries it’s original 2 year date. If they original amount retains it’s original date, most businesses will face interest shortly. To avoid this you do have the option to repay the original loan and then draw down again (you are allowed a total of 2 drawdowns at this stage).
How to apply
To apply for the loan and see your existing balance, login to your myIR account and go to the “I want to” section.
Applications are open until 31 December 2023, so you have plenty of time
Repaying the loan
To repay the loan you can make payments in your internet banking. Instead of choosing INC or GST, you can select the small business cashflow scheme instead