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Changes to Small Business Cashflow (Loan) Scheme

12 November 2020

The Government has announced some changes to the Small Business Cashflow (Loan) Scheme.

  • No interest will be charged if the loan is repaid within 2 years. Currently, it is 1 year.
  • Restrictions on how the loan can be used have eased. As well spending on core operating costs, businesses will be able to choose to use the loan to invest in their business, helping it to adapt to the impact of COVID-19.

Also, applications for the loan can now be made until 31 December 2023, an extension of 3 years.


Customers who already have a loan


We'll update the terms and conditions of existing loan contracts to include the changes. You don't need to get in touch with us. We'll do this by 31 December 2020 and we’ll let you know when we've made the change.


No other changes at this stage


At this stage, there are no other changes to the loan scheme.

  • It is for businesses with 50 or fewer full-time-equivalent employees.
  • They must have been in business on 1 April 2020 and have experienced a 30% decline in revenue as a result of COVID-19 restrictions.
  • The maximum amount that can be borrowed is $10,000 plus $1,800 per full-time-equivalent employee and only one amount can be drawn down.
  • The loan period is for 5 years and interest rate is 3% from the date of the loan being provided.

Small business cash flow loan

The Government has asked for advice on some of these existing aspects of the loan scheme, so further changes may happen at a later stage.

Source: www.ird.govt.nz