Greenlion say, “If there is anyone struggling we should ensure we have looked at all these resources and then some”, and have set out the information below to help SMEs navigate the government’s support scheme. Businesses are slowly getting back to normal under Level 2; however with the lockdown many are still struggling to manage their cashflow.
Small businesses are a vital part of New Zealand’s economy making up 97% of all enterprises. The impact of COVID-19 has seen some businesses folding and many others fighting to survive as they tackle a myriad of issues, including operating restrictions, a significant downturn in revenue, supply chain issues, redundancies and a future full of uncertainty. It is a difficult time for many governing these businesses but there is support available to help them stay afloat while the economy adjusts and recovers.
The Wage Subsidy Scheme is designed to support employers adversely affected by COVID-19, and ensure workers can continue to receive an income, even if they are unable to work. Eligibility criteria includes having had a 30% revenue drop due to COVID-19. Employers need to retain employees for at least 12 weeks. A Wage Subsidy Extension will be available from 10 June – 1 September 2020 to support employers, including sole traders, who are still significantly impacted by COVID-19. For this extension of wage subsidy – 50% of revenue drop has to be demonstrated for the 30 day period prior to application.
The Business Finance Guarantee Scheme for SMEs includes, a limit of $500,000 limit per loan for businesses with an annual revenue between $250,000 and $80m, and loans will be for a maximum of three years, and are expected to be provided by banks at competitive rates.
The Small Business Cashflow Loan Scheme introduces an interest-free loan scheme to some small businesses impacted by COVID-19, administered by Inland Revenue. The Government has also announced a six-month mortgage principal and interest payment deferral for affected individuals and SMEs.
There is also insolvency support, rent and mortgage relief, potential rent and outgoings abatement and tax relief. The government has allocated an additional $25m to enable businesses to access expert advice and support in areas such as HR, health and wellbeing, business continuity, cashflow and finance management, strategy and digital capability.
For more information on chartered accountants Auckland, business consulting firms and financial consultants please go to https://www.greenlion.co.nz .