Welcome to Alert Level 2, Aotearoa.
There are a number of schemes that have been developed to help businesses recover from the effects of Covid-19. Here are a few for you to look into;
Covid 19 Small business Cashflow Loan (SBCS)
The Small Business Cashflow (Loan) Scheme (SBCS) has been introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19. They must have 50 or fewer full-time-equivalent employees.
Inland Revenue will administer the payments and repayments of this scheme. Applications will be open from 12 May 2020 to 12 June 2020 inclusive.
Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee.
The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within one year.
More information on the IRD website here
Business Finance Guarantee Scheme
Government has launched a business finance guarantee scheme for small and medium-sized businesses, to protect jobs and support the economy. The Crown, in partnership with participating approved banks, will support targeted new loans (including increases to existing limits) to eligible businesses, as a response to difficulties caused by COVID-19.
Government is guaranteeing 80% of the risk, while the banks are covering the remaining 20%. A normal lending process will be followed by the banks, which will make the lending decisions. Further details can be found on the banks’ websites.
More information here
Covid-19 Advisory Support – Regional Business Partner Network
The Government has allocated additional funding to support businesses through the COVID-19 pandemic.
- The Covid-19 Business Advisory Fund, part of the Government’s allocation to support businesses, is to enable businesses to access expert advice and support through the Regional Business Partner Network.
- Business owners can access up to $5000 excl. GST per business from the COVID-19 Business Advisory Fund.
- This funding can be used with a range of registered providers for a variety of registered services depending on business needs. It is 100% funding; no co-funding is required.
- Regional Business Partner (RBP) Growth Advisors will work with businesses to asses priority needs and provide access to funding for use with registered Service Providers. Only RBP Growth Advisors can allocate funding. Sumpter Baughen are registered providers with the RBPN.
- Register here: www.regionalbusinesspartners.co.nz
- Businesses already registered with the RBP should contact their RBP Growth Advisor or local RBP Partner organisation. Contact details are on the RBP website.
Eligibility Criteria for Businesses
- Have undergone an assessment with a Regional Business Partner Growth Advisor
- Have fewer than 100 full time equivalent employees, and
- be GST registered in New Zealand, and
- have a New Zealand Business Number, and
- be operating in a commercial environment; and
- are a privately-owned businesses or are a Māori Trust or incorporation under the Te Ture Whenua Māori Act 1993 or similar organisation managing Māori assets under multiple ownership.
- Charitable trusts
- Incorporated societies