Changes to Small Business Cashflow (Loan) Scheme

  1. Home
  2. /
  3. COVID-19
  4. /
  5. Changes to Small Business Cashflow (Loan) Scheme

The Government 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. 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
  • Applications for the loan can now be made until 31 December 2023, an extension of 3 years.


If you have already been approved and received this loan, IRD will update the terms and conditions of existing loan contracts to include the changes. They will do so by 31 December 2020 and notify you.

The original eligibility criteria still apply:

  • 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.

Share This

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Related Posts