Last Friday, May 1st 2020, the Government introduced the Small Business Cashflow Scheme. Its purpose is to further support small to medium businesses who have experienced a loss of revenue due to COVID-19 …

What is it?

It is a loan for businesses who have lost revenue due to COVID-19.

How much is it?

$10,000 per business + $1,800 per FTE employee.

What are the terms?

This is interest free if paid back within a year.

Otherwise interest will be charged at 3% for a maximum term of 5 years.

Repayments are not required for the first two years (note, still only interest fee if paid back within a year).

Who can get it?

A business that fits the eligibility criteria for the Wage Subsidy Scheme see here, is eligible provided it fulfils the additional criteria below.

The business must also

  • have 50 or fewer FTE employees.
  • be viable.
  • use the money for core business operating costs.
  • enter into a legally binding loan contract.

How can I apply?

Applications can be made at Inland Revenue from May 12.

Things to bear in mind?

Be sure you make careful assessment of the criteria to ensure your business meets the eligibility criteria. It is likely this scheme, will be audited, similarly to how the Wage Subsidy Scheme is.

By the same token be sure you use the loan for its intended purpose. And remember, it is a loan, you will have to pay this back.


If you need any help with this or any other COVID-19 issues you might be facing, please don’t hesitate to get in touch.