With New Zealand now experiencing it’s largest COVID-19 outbreak we are seeing more and more the impact this is having on businesses and how they are able to run day to day.
This week the Government have announced a new financial support package, and an updated to the Small Business Cashflow Scheme.
COVID Support Package
The COVID Support Package has been made available for businesses struggling with revenue during the Omicron outbreak.
Applications for the first payment open on 28 February, with payments beginning from 1 March 2022. It will be available on a fortnightly basis for 6 weeks, with a total of 3 payments.
Each COVID Support Payment will be $4,000 per business, plus $400 per full-time employee, capped at 50 full-time employees or $24,000. This is the same rate as the most recent Transition Payment.
To be eligible, businesses need to show a 40% drop in revenue for seven consecutive days after 15 February (date on which we shifted to Phase 2 of the Omicron response) compared with a seven-day period in the six weeks prior to that date.
For more information, and where to apply from 28 February is available via this link – New financial support for businesses affected by Omicron | Unite against COVID-19 (covid19.govt.nz)
COVID-19 Small Business Cashflow Scheme (SBCS) – Top-Up
The Government has announced that the Small Business Cashflow Scheme will be increased to $20,000, from $10,000.
The loan repayment timeframe will remain at 5 years (60 months). The first 2 years of the loan will become interest-free, as long as the loan is not in default. Then at the start of the 3rd year interest will apply at a rate of 3% per year. This will be based on the remaining loan balance from the first day of the 3rd year of the loan period.
These changes will be made by the end of March, more information will be able soon via this link – COVID-19 Small Business Cashflow Scheme (SBCS) (ird.govt.nz)
You can also see some more information on what support payments are available for employees from our previous article – COVID-19 Support Payments for Employees – PKF Hamilton
Please reach out if you have any questions
The team at PKF Hamilton