30 November 2020

The Small Business Cashflow Loan Scheme (SBCS) supporting small to medium businesses affected by COVID-19, has been extended.

Several changes have also been made so that it is easier for businesses to access finance. They include:

  • Applications open 3 more years, closing 31 December 2023
  • No interest charged if loan repaid within 2 years (up from 1 year)
  • Fewer restrictions on what the money can be spent on

If you already have an SBCS loan, you will automatically be covered by the new terms and conditions. The IRD will update existing loan contracts to include the changes by 31 December 2020, and will notify you when this has been completed.

Small businesses, including sole traders and contractors, can apply for the SBCS loan through the Inland Revenue.

At this stage, all other aspects of the SBCS loan scheme remain in place:

  • 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 up to 5 years and the interest rate is 3% from the date of the loan being provided, with no repayments required in the first 2 years


If you are unsure of whether you are eligible for SBCS, or would like to find out about other COVID-19 financial support schemes available to businesses, please contact our team at Nexia.

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