Government announced they will provide loans of up to $100,000 to help small to medium sized businesses, including contractors and self-employed.
The scheme provides a one-off government loan for businesses and organisations impacted by COVID-19 to help with cash flow. Applications are open until the 12 June 2020. Small to medium sized businesses with 50 or fewer full-time employee equivalents can apply. The scheme is also open to sole traders and self-employed businesses.
Details of the loan includes:
- $10,000 to be provided to eligible businesses
- an additional $1800 per full-time employee equivalent
- interest free if the loans are paid back within a year
- an interest rate of 3% for a maximum term of five years
- repayments not required for the first two years.
The maximum amount you can borrow depends on the number of full-time and part-time employees you have. If you are a business without employees, ie sole trader or self-employed, you can receive a loan of up to $11,800. Find out more information and how to apply at the Ministry of Business, Innovation and Employment.