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Small Business Cashflow (loan) Scheme (SBCS)

The Government has introduced the Small Business Cashflow (loan) Scheme (SBCS) to support businesses and organisations struggling because of loss of revenue as a result of COVID-19.

Here's the key information:

  1. To be eligible, a business or organisation must have 50 or fewer full-time-equivalent employees and be eligible for the Wage Subsidy Scheme.

  2. Use this calculator here to figure out how much you would be eligible for.

  3. In most cases, businesses will be entitled to a loan amount of $10,000 plus $1,800 per full-time-equivalent employee, to a maximum of $100,000 per business.

  4. The loan has a maximum five-year term and must be repaid by 31 July 2025.

  5. The annual interest rate will be 3% beginning from the date of the loan being provided.

  6. Interest will not be charged if the loan is fully paid back within one year. If you do not repay the loan in full within one year, you will be charged interest for the entire term of the loan.

  7. Repayments are not compulsory in the first 24 months. After this period, you will be required to make regular payments for both the principal and interest.+

  8. If you miss any compulsory repayments, IRD will apply UOMI at 7% = A total interest rate of 10% will apply.

  9. Once approved, most applicants will receive their loan payment in full from IRD within 5 working days. It will be paid to the bank account shown in myIR.

To apply you will need:

  1. You must have a 'sound plan' to be viable and ongoing and hold information on file to verify this when applying for a loan e.g. business continuity planning, budgets, cashflows and accountant’s assessment (see next section for more information on evidence needed).

  2. Confirm your business or organisation is experiencing a minimum 30% decline as defined in the wage subsidy scheme.

  3. Confirm you’ll use the loan to pay for core operating costs (including, but not limited to, rent, insurance, utilities, supplier payments, or rates). It can’t be passed onto shareholders or owners of the business.

  4. Provide your New Zealand Business Number (NZBN) - businesses and organisations without an NZBN will need to obtain one before applying for the loan here. You can find your NZBN on the companies office website.

Our view – Proving business viability is key!

We have seen the Government and media closely scrutinise the number of businesses who have applied for the Wage Subsidy Scheme. We have already begun seeing a number of small businesses being questioned/audited on the use of the funds from the Wage Subsidy Scheme.


Do you have a plan for how your business will remain viable? This generally means the business owners have good reason to believe it is more likely than not the business or organisation will be able to pay its debts as they fall due within the next 18 months.


It is important that You must keep any evidence of the business or organisation’s ongoing viability at the time of requesting the loan, as we may audit your application. Best to some documentation in place before applying for this loan.


Evidence might include, for example:

  • A cash-flow forecast for the business or organisation for the short term.

  • A plan for where revenue will come from in future market conditions, and a forecast of those revenues.

  • Financial statements showing the business or organisation has enough resources to sustain itself when including the SBCS loan.

  • Your accountant’s assessment that the business or organisation is viable and ongoing.


Contact us today to ensure you have adequate documentation in place before applying for a loan.

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