Covid 19: extension to the wage subsidy and loan schemes
Great news for business owners! The Government recently announced that more businesses will benefit from the extended wage subsidy scheme.
Originally, businesses were required to show that they had a revenue drop of at least 50% to be eligible for the wage subsidy scheme. This has now changed, with business now only having to have at least 40% drop in revenue.
This will mean that an extra 40,000 businesses will be eligible and will benefit hundreds of thousands of workers in New Zealand.
The period of revenue loss has been extended to a 30 day period in the 40 days immediately prior to the application date, up from 30 days prior.
Businesses have also been given an extension of time to apply for the Small Business Cash flow Loan Scheme. This scheme is a great way for businesses to get cash flow, with the loan being interest free for the first year and no repayment obligations during the first two years.
These Government schemes are great for businesses struggling with the economic impacts of Covid-19. It has been a rough few months but things will get better if you take advantage of the schemes on offer.
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