The government has announced a plan to provide interest free loans for a year to small businesses which have been impacted by the COVID-19 to help support their cash-flow needs and fixed costs as well.

The scheme will provide an assistance of up to $100,000 to firms employing 50 or fewer full time employees. The scheme was introduced by the government to address the needs of small and medium sized businesses which wasn’t being met by the banks in question.

The scheme will provide $10,000 to every firm, and an additional $1800 per equivalent full-time employee. To further encourage businesses the loans will be interest free if they’re paid back within a year. If the loan amount cannot be repaid within a year, then a 3% interest fee will be charged for a maximum period of five years. Repayments are not required for the first two years.

The eligibility criteria for this scheme is similar to the Wage Subsidy Scheme. In addition to this businesses will also have to declare that they are a viable business, and that the money from the scheme will be used to core business operating costs, and will have to enter into a legally binding loan contract.

Inland Revenue will administer the payments and repayments of this scheme to provide immediate support to businesses that have been adversely impacted. Applications for the scheme will be open from May12th, and businesses will apply for the loan payment through myIR.

More information on the loan, including the eligibility criteria and a calculator to determine how much a business can borrow/ qualify for will be available in the upcoming days.

Keep watching this space to know more about the scheme, and if you have any issues or queries, feel free to get in touch with us at or call us at +64-9-972-2236

Written by Rowain Pereira

Related Articles

Top 8 Mistakes Small Businesses Make and How to Avoid Them

Every small business owner embarks on their entrepreneurial journey with a vision, passion, and determination. However, amidst the hustle and bustle of operations, sales, and growth, it's not uncommon for some to overlook the financial aspect of running a...

Housing Tax Change: Interest Deductibility

For the purposes of the interest limitation rules, a “New Build” will be defined as a self-contained residence that receives a CCC (Code of Compliance Certificate) on or after 27 March 2020.

Housing Tax Changes: All You Need To Know

The government announced a raft of policies on 23 March 2021 (yesterday) aimed at the housing market. Out of the announcement, there were some tax changes that will significantly impact on property owners and investors. The changes are: The current bright-line period...

Stay Up to Date With The Latest News & Updates

Join Our Newsletter

Stay up to date with all of the latest news and insights related to your business. Sign up below and we promise to only send you content