Govt cashflow loan scheme has expanded

If you missed the pre-Christmas announcement, as from this month the government’s (via the IRD) cashflow loan scheme has been expanded.

Revenue Minister David Parker said:


“We have extended the purpose of the scheme and will enable borrowing for investment in new equipment and digital infrastructure. In addition, firms can draw down a second loan, if they still meet eligibility criteria and have repaid the original loan in full. We want to keep viable businesses afloat where we can.”

“Some firms have promptly repaid their original loan and may wish to draw down another loan as circumstances change. More businesses will have access to this line of credit to help them prosper.”

These are the rules:
• New businesses started post 1 April 2020 will be eligible so long as they have been in business for more than 6 months
• Small and medium businesses (SMEs) will be able to draw down loans more than once provided the earlier loans are repaid
• The scheme is to be for three years
• The interest-free period is to be extended to 2 years
• Can borrow to buy new equipment and digital infrastructure
• The number of days for which there has to have been a 30% decline in income is to be reduced to 14 from 30
• For new businesses the comparison can be with the previous month
 
Please note that you can only qualify if your drop in revenue was caused by Covid-19.

See the details here