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COVID-19 Small Business Cashflow Loans

What is it?

The Small Business Cashflow (Loan) Scheme (SBCS) has been introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19. They must have 50 or fewer full-time-equivalent employees.

Inland Revenue will administer the payments and repayments of this scheme. Applications will be open until 24th July 2020.

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. Interest will not be charged if the loan is fully paid back within one year, repayments are not required for the first two years and it must be repaid in full within five years.

What are the Drawbacks and Advantages?

Before you apply for any loan think carefully about the long term and what will the loan do and cost, will it be enough to supoport you business for the full duration of the downturn or is it judt delaying the problem.


  • This provides businesses with cash
  • There is a low interest rate
  • You have 5 years to repay


  • The money can only be used to cover core expenses such it can't be used as drawings
  • You must be eligible - meet the 30% revenue reduction in one month to June 2020 vs 2019
  • You must be viable which means you can repay debts as they fall due in 18 months
  • If you are not Eligible or Viable then the loan needs to be repaid or 10% interest

How do I apply?

Login to you MyIR account and one of the options on the righthand side is apply for a Small Business cashflow Loan.

Here is a link to some more detail on the application process