You may be aware that the Inland Revenue Department has announced some changes to the Small Business Cashflow (Loan) Scheme. If you have applied for the SBCS Loan, below changes could affect your business.

Main changes included:

• No interest will be charged if the loan is repaid within 2 years. (Currently, it is 1 year.)

• Restrictions on how the loan can be used have eased. As a business owner, you can not only spend the loan on core operating costs, but also able to consider to use the loan to invest in the business.

• Applications for the loan can now be made until 31 December 2023, which has an extension of 3 years.

If you had already applied for SBCS Loan, the changes mentioned above will be updated in the terms and conditions of existing loan contracts. Inland Revenue Department will notify you once they made the changes by 31 December 2020.

If you are interested in applying SBCS Loan, please contact us via info@stong.co.nz. We are pleased to assist your business to adapt to the impact of COVID-19.

For more relevant details, please refer to IRD website link: https://www.ird.govt.nz/updates/news-folder/covid-19-small-business-cashflow-loan-changes