Small Business Cashflow (Loan) Scheme

Applications are now open for the Small Business Cashflow (loan) Scheme, which is another of the Government’s initiatives to support business affected by COVID-19. This significant initiative will aid small to medium sized businesses who require a much needed cashflow injection.

Inland Revenue will be taking applications and issuing loans to businesses with up to 50 full time equivalent (FTE) employees. The scheme will provide $10,000 plus an additional $1,800 per FTE, up to a maximum of $100,000. Below is an example of what this will look like:

Firm size    Base loan    FTE equivalent amount    Total loan
Sole trader $10,000 $1,800 $11,800
3 FTE $10,000 $5,400 $15,400
50 FTE $10,000 $90,000 $100,000

Applicants have the option to accept the full loan amount or opt for a smaller loan. Only one application can be made and once submitted no amendments can be made to the application.

Loans will be interest free if they are paid back within a year, however repayments will not be required for the first two years. If the loan is not repaid within a year the applicable interest rate will be 3% per annum, for a maximum term of five years. Businesses receiving the loan must use the money for core business operating costs (such as rent, utilities, rates, suppliers) and enter into a legally binding loan contract.

Commonly owned groups of business and organisations will be treated as a single firm when applying the eligibility amount and for the purposes of assessing the available loan amount. Inland Revenue will administer the payments and repayments and are advising business owners to speak with their financial advisors for any advice.

Year Interest rate Repayments
1 0% Not required
2 3% Not required
3 3% Required
4 3% Required
5 3% Required


Businesses will need to apply for the loan through myIR, Inland Revenue’s secure online services facility ( In the “I want to” section you should select “Apply for a Small Business loan”. The application process will be only be open from 12 May 2020 until 12 June 2020 inclusive.

To apply for the Small Business Cashflow (loan) Scheme, applicants will need to:

  • provide their New Zealand Business Number, businesses without this number will need to obtain one before applying for the loan. Details on how to apply for this number can be found below
  • confirm they are experiencing a minimum 30% decline in actual or predicted revenue from January 2020 to June 2020, as defined in the Wage Subsidy Scheme
  • confirm their business is existed before 1 April 2020
  • confirm that the business is viable and ongoing, has a plan to ensure it remains viable and ongoing, and there is evidence that Inland Revenue can use to check this
  • confirm the loan will be used to pay for core operating costs such as rent, power, rates etc.
  • confirm the loan will not be passed through to the shareholders or owners of the business personally by way of dividend or loan
  • confirm they have the appropriate authority to apply for this loan on behalf of the business, that they are 18 years or over and have the legal right to apply for the loan
  • agree to the loan terms, a copy of the loan terms and conditions is available here

The Small Business Cashflow Scheme will be subject to an audit process led by the Inland Revenue and part of the legislation allows for the exchange of information from the Wage Subsidy Scheme. The Commissioner will be able to use this information in connection with any of the Commissioner’s duties, powers or functions under the Inland Revenue legislation.

Nexia New Zealand understand that many, if not all businesses, will be affected by these unprecedented and challenging times. We would encourage you to get in contact with us to discuss this scheme, or any of the other Government relief initiatives available to your business.



Inland Revenue: Small Business Cashflow Scheme

New Zealand Business Number: Get your number

If you would like to discuss any of the available relief packages, or recent changes from the Government that may affect your business, please contact our team at Nexia NZ who are here to assist you or offer advice.

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