One-off government loans are available for businesses, charities and not for profits impacted by COVID-19 to help with cash flow. The Small Business Cashflow (loan) Scheme has been extended until the end of 2020. Applications opened on 12 May 2020 and can now be submitted up to and including 31 December 2020 and can be made through myIR. Here’s an overview of the scheme.

Loan terms and amount

Details of the loan include:
  • $10,000 to be provided to eligible organisations, including charities and not-for-profits
  • an additional $1,800 per full-time employee equivalent
  • interest free if the loans are paid back within a year
  • an interest rate of 3% for a maximum term of five years.


Repayments not required for the first two years. Interest will not be charged if the total loan is repaid within 12 months. That is as close to free as can be imagined! If the loan is not repaid within 12 months, interest will be charged at the rate of 3% per annum for the entire term of the loan. While repaying the loan is not compulsory within the first 24 months, voluntary payments can be made over this period.

Use of the loan

The loan must be used for core operating costs. The loan is not subject to income tax or GST, and deductions can be claimed for expenditure funded by the loan. Any Wages Subsidies your organisation has received (or are qualified to receive) must have been no more than $351,480 to qualify for the loan. The maximum amount of the loan for organisations is $100,000. An organisation must be “viable” and have a business plan in place to ensure it remains viable and must retain evidence of the organisation’s ongoing viability. This loan could provide a useful buffer for those organisations who know they are still viable, but need some cash-flow to get them through the initial impact of COVID-19. Applications for the loan close on 24 July 2020 (extended from the original date of 12th June).

Find out more here   This page was last updated on 6 July 2020.