The Government recently introduced a one-off loan for businesses and organisations impacted by Covid-19. Applications must be made by 12 June 2020 through myIR.
- Eligible applications can receive $10,000 plus $1,800 per full-time employee with a maximum loan amount of $100,000.
- Once approved, most applications will receive the funds within 5 working days.
- Applicants will have 5 years to pay off the loan with an annual interest rate of 3%.
- The loan will be interest free if paid off within 1 year.
- Repayments are not compulsory for the first 2 years.
- You can choose to borrow the maximum amount or a small portion.
These loans are also accessible for NFP, Charity, NGO entities who meet the criteria. IRD recently attended a hui organised by one of our Partners, Steven Moe, and in the video here they explain how the system works and run through slides describing it. The relevant parts are:
00:00 Introduction from Steven Moe
02:14: Stewart Donaldson from IRD overview of what they are involved in currently
05:25: Rata Kamau from IRD with an overview of the Small Business Loan Scheme
20:40: Rata and Stewart answering questions.
Those thinking of applying should obtain financial advice to determine whether this is appropriate for their situation.
Click the following link to start your application.
This article is not a substitute for legal advice and you should contact your lawyer about your specific situation. We would be happy to assist in your journey. Please feel free to contact Steven Moe at stevenmoe@parryfield.com should you require assistance.
