Government Extends Further Support for Businesses

Finance Minister Grant Robertson as today announced changes to both the extended wage subsidy scheme (EWSS) and the Small Business Cashflow Loan Scheme (SBCS).

When announced as part of the Budget on 14 May 2020 the EWSS was to be available for businesses that had experienced a 50% reduction in revenue in the 30-day period prior to the application date when compared with the nearest comparable period in 2019.

This has now been modified to change the revenue reduction threshold to 40% for a 30-day period in the 40 days immediately prior to the application date (but beginning no earlier than 10 May 2020), versus the nearest comparable period last year.

The 12 week period covered by the Wages Subsidy must be concluded before an application can be made under the EWSS.

The EWSS will provide payments of $585.80 for a full-time employee and $350 for a part-time employee for a period of 8 weeks. This equates to $4,686.40 and $2,800 for a full time and part time employee respectively.

Applications for the EWSS can be made from 10 June 2020 and will close on 1 September 2020.

The SBCS application deadline has been moved from 12 June 2020 to 24 July 2020.

Eligible businesses and organisations (with 50 employees or less) may apply for a loan of $10,000 plus $1,800 per full-time equivalent employee up to a maximum of $100,000.

The annual interest rate will be 3% from the date the loan is provided.

Interest will not be charged if the loan is fully paid back within one year.

Speak to us about whether the EWSS or SBCS is right for your business or if you need any support with your applications.