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  • News
  • 5 May, 2020

Sole traders, self-employed and small business now entitled to $10,000 Government loan

The Government will provide interest free loans for a year to small-to-medium sized businesses affected by Covid-19 to support immediate cashflow needs and meet fixed costs, this includes sole traders and the self-employed.

The Small Business Cashflow Scheme (SBCS) loans can be used for core business operating costs, such as rent, insurance, utilities or rates, and will be available for any business with the purpose of remaining open during the Covid-19 crisis.

The scheme will provide a base $10,000 loan to every company and an additional $1,800 per full time employee. For businesses with 50 employees or less and depending on the size of the business, could be extended to as much as $100,000.

The eligibility criteria will be the same as those for the wage subsidy scheme, meaning the loans will also be available to the self-employed, including sole traders. For example a sole trader would get the base $10,000 plus $1800, leaving them with an $11,800 interest free loan.

The loans will be free of interest if they are paid back within a year. Inland Revenue will administer the payments and repayments of this scheme to provide immediate support to businesses that have been adversely impacted.

Applications for the loan payment are made through MyIR and are expected to be open from Tuesday 12 May.

To find out more, visit the IRD website here:
https://www.ird.govt.nz/covid-19/business-and-organisations/covid-19-small-business-cashflow-scheme

PBT business advisors can also help with support and advice on which Government schemes you can access.

Stay safe, be kind and look after one other.

The team at Pacific Business Trust.

0800 287 7526

www.pacificbusiness.co.nz

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