In light of the current COVID-19 Omicron outbreak, the Government has announced three additional forms of financial support for businesses with cashflow pressures as a result of COVID-19. These are:
New targeted COVID-19 Support Payment (CSP) for the most affected businesses
This payment is aimed at the most affected business only and hence has strict eligibility criteria. Applications for the first payment opened on 28 February 2022 and it is expected that the second payment will open on 14 March 2022 and the third payment on 28 March 2022.
For information on eligibility criteria click here.
You apply for the new CSP through myIR. For more information on how to apply for the new CSP click here.
Top-up loan available under the Small Business Cashflow Scheme
The Small Business Cashflow Scheme (SBCS) was introduced to support small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19.
The SBCS base loan will be increased to $20,000 (from $10,000). This means the total amount that can be borrowed will be $20,000, plus $1,800 per full-time equivalent employee (up to 50 employees). The loan repayment period remains 5 years (60 months).
The first 2 years of existing loans will become interest-free provided the loan is not in default. Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period.
These changes will be made to the SBCS by the end of March. More information will be available soon.
Flexibility on tax payment terms extended by Inland Revenue.
The IRD have advised they are offering some flexibility due to COVID-19 impacts, including remitting penalties and interest and providing instalment arrangements to pay off tax liabilities. You can enquire about these direct with the IRD through myIR.
For more information on the full range of business supports during this Omicron outbreak, please read here and contact us more assistance.