Home > Updates > Important reminders regarding COVID-19 funding
If you are like most businesses and applied for the SBCS in May 2020, we would like to remind you that the two-year interest free period is about to expire.
Interest at the rate of 3% will be charged two years after the initial drawdown. After this two-year period, interest and principal must be repaid on a monthly basis and the loan is to be repaid in full within three years (principal and interest must be repaid in full within five years of drawdown).
Shortly after the two-year anniversary of the loan drawdown, you will receive a letter from the IRD outlining your monthly repayments and how to go about making these payments. It’s important to note, if you default on the monthly repayments the IRD have the ability to demand payment in full and charge interest on the loan from the day it was drawn down.
If you are in a position to repay the loan in full, and do so before the two-year anniversary date, no interest will be charged.
If you are unsure of which situation applies to you, when your interest free period ends, or if you are best to pay the balance of the loan, please contact your Nexia advisor
To find out more click here
Applications for these payments close permanently on 5 May 2022.
If you are yet to apply and think you are eligible, click here