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New Zealand gov't boosts cashflow support for small businesses

New Zealand gov't boosts cashflow support for small businesses

India Blooms News Service | @indiablooms | 01 May 2020, 07:52 am

Wellington/Xinhua/UNI: The New Zealand government will provide interest free loans for a year to small businesses impacted by the COVID-19 economic shock to support their immediate cashflow needs and meet fixed costs.

The Small Business Cashflow Loan Scheme will provide assistance of up to 100,000 NZ dollars (60,878 U.S. dollars) to firms employing 50 or fewer full-time equivalent employees, Minister of Finance Grant Robertson said at a press conference.

"It has become clear that the support that is available to our small and medium businesses from banks is not meeting their needs nor our expectations as a government. That is why we have moved to provide this scheme to give some much needed cashflow," Robertson said.

The scheme will provide 10,000 NZ dollars to every firm and in addition 1,800 NZ dollars per equivalent full-time employee. Loans will be interest free if they are paid back within a year. The interest rate will be 3 percent for a maximum term of five years. Repayments are not required for the first two years, according to the minister.

"We recognize that many businesses have had little or no revenue through Alert Level 4 and Level 3. This scheme is designed to give them access to cashflow to meet fixed costs on concessionary terms," said Minister of Revenue Stuart Nash.