The Government has announced some changes to the Small Business Cashflow (Loan) Scheme.
- No interest will be charged if the loan is repaid within 2 years. Currently, it is for 1 year.
- Restrictions on how the loan can be used have eased. As well as spending on core operating costs, businesses will be able to choose to use the loan to invest in their business, helping it to adapt to the impact of COVID-19.
Also, applications for the loan can now be made until 31 December 2023, an extension of 3 years.
Organisations and small to medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.
The Small Business Cashflow (Loan) Scheme (SBCS) has been introduced to support businesses and organisations struggling because of the loss of actual or predicted revenue as a result of COVID-19. They must have 50 or fewer full-time-equivalent employees.
Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee. The annual interest rate will be 3% beginning from the date of the loan being provided.
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