Interest-free loans for a year are a helpful support for small businesses, says BusinessNZ.
The Government’s Small Business Cashflow Scheme announced today will ensure loans of $10,000 and payments of $1,800 per full-time employee that will be interest-free if paid back within a year.
The loans are for operating costs including rent, insurance, utilities, supplier payments and rates.
BusinessNZ says many businesses are facing dire cashflow shortages, threatening their ability to meet ongoing operating costs.
“We have been advocating for interest-free support for smaller businesses whose future is threatened by the pandemic and business lockdown,” BusinessNZ Chief Executive Kirk Hope said.
“This is useful, relevant support to help SMEs through this crisis,” Mr Hope said.