Interest Free Loans – Update

May 11, 2020

COVID-19 Small Business Cashflow Scheme


Applications open tomorrow, 12 May, for the Small Business Cashflow Scheme (SBCS).


To be eligible for the loans, of up to $100,000, businesses must be eligible for the Wage Subsidy Scheme and the business must be viable. The amount of the loan is calculated by a $10,000 base loan with an additional $1,800 per full time employee.


This scheme will be administered by Inland Revenue and applications will be open until the 12th of June.


To apply for the SBCS loan you will need to:

  • Provide your New Zealand Business Number (NZBN)
  • Confirm your business or organisation is experiencing a minimum 30% decline in actual or predicted revenue from Jan 2020 to June 2020 as defined in the wage subsidy scheme.
  • Confirm your business or organisation existed before 1 April 2020.
  • Confirm your business or organisation is viable and ongoing, and you have evidence we can use to check this.
    • Evidence of a viable and ongoing business may include; a sound plan, cashflow forecast, financial statements showing the business has enough resources to sustain itself when including the SBCS loan and/or an accountant’s assessment that the business is viable and ongoing.
  • Confirm you’ll use the loan to pay for core operating costs (including, but not limited to, rent, insurance, utilities, supplier payments, or rates).
  • Confirm the loan will not be passed through to the shareholders or owners of the business or organisation, for example, by a dividend or a loan to the shareholders or owners.
  • Confirm you have the appropriate authority to commit your business or organisation to this loan.
  • Confirm you are 18 years or over and have the legal right to apply for this loan.
  • Confirm you are aware we are not providing financial or other advice regarding this loan.
  • Agree to the loan terms Terms and Conditions

Loans will be interest free if they are paid back within a year. The interest rate will be 3% for a maximum term of five years. Repayments are not compulsory for the first two years.


If you are eligible for this loan, and would like to apply, please contact your Greenlion adviser for assistance.

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