Proposed Business Support Package due to Resurgences of Covid 19 in the Community
Proposed Business Support Package Announced
The Government has proposed a package to support businesses and individuals in the
event of Alert Level escalations due to resurgences of COVID-19 in the community. The
package retains some key existing financial support and adds new elements based on
experience and business feedback. This allows businesses to plan knowing what support
they will receive if Alert Levels rise to 2 or above and they are directly impacted.
This support will be available late February or early March 2021 subject to the necessary
legislation being passed.
Business support measures include:
• At Alert Level 2 or above, directly impacted businesses will be able to apply
for a one-off Resurgence Support Payment, providing cashflow support to
cover fixed costs such as rent. Inland Revenue will administer this payment.
• Firms can still access the Small Business Cashflow Scheme for additional
cashflow support or seek lending from their banks (including loans through
the Business Finance Guarantee Scheme).
• At Alert Level 3 or above, the most affected firms can also seek the COVID-
19 Wage Subsidy to help them keep their staff employed.
• At Alert Level 4, other support measures such as childcare for essential
workers, freezes on residential tenancy rent increases and restrictions on
residential tenancy terminations will assist firms and households through the
most severe public health restrictions.
• A Short-term Absence Payment will be available to eligible employers to
support eligible workers who stay home while waiting for a COVID-19 test
result. This is also available to eligible self-employed workers.
Small Business Cashflow (Loan) Scheme changes
On 9 November 2020 the Government announced changes to the Small Business
Cashflow (Loan) Scheme.
The changes included:
• No interest will be charged if the loan is repaid within two years. Under the
original Terms and Conditions of the Small Business Cashflow Loan Scheme
Contract no interest is charged if the loan is repaid within one year.
• From 9 November 2020 the restrictions on what the loan can be spent on have
eased so that the loan can be spent on investments to help businesses adapt to
the impact of COVID-19.
In addition, applications for the loan can now be made until 31 December 2023, an
extension of three years. Inland Revenue is working on making these changes for all borrowers.