Small Business Cashflow Scheme update

On 21 March 2022, the Small Business Cashflow Scheme (SBCS) loan amount increased to $20,000 (from $10,000). The scheme was originally introduced to support small to medium businesses and
organisations struggling with a loss of revenue due to COVID-19.

The eligibility criteria have not changed. Your business must have:

  • no more than 50 full-time equivalent (FTE) employees;
  • been owned and operated by you for at least 6 months before applying;
  • experienced at a 30% decline in actual revenue;
  • must be viable and have a plan to ensure it continues to be viable.

During the loan period (60 months) the same general rules apply:

  • No interest is charged for the first 2 years and repayments are not compulsory during this
  • The loan can be drawn down in up to four separate amounts;
  • The interest-free period begins on the date of your first drawdown;
  • After 24 months you will need to make regular payments (principal and interest). The
    interest rate is 3% per annum.

If your business already has a loan under this scheme, you can apply for a top-up loan of up to $10,000, plus any amount you didn’t draw down in your initial loan. If you do apply for a top-up you
will need to make sure your budgets reflect that your business will have two separate loans with two separate interest-free periods. The interest-free period applies from the date that the first
drawdown was made for both the original loan and then the top-up. Budgets and cashflow projections should reflect this.

If you repay the loan within 24 months of the first drawdown, no interest is payable. If your business defaults on the loan, it may be payable in full immediately and default interest may also be

Applications are open until December 2023.

Your accountant will be able to help you confirm that you are eligible for this loan or the top-up (especially the calculation and proof of the drop in actual revenue) and assist with the budgeting and
cashflow projections for repayments.


You may also like