Covid-19 Update: A summary of business relief options available for business owners

Covid-19 Update: A summary of business relief options available for business owners

Insolvency relief for companies impacted by COVID-19

The Government is introducing legislation to make changes to the Companies Act to help businesses facing insolvency due to COVID-19 to remain viable, with the aim of keeping New Zealanders in jobs.

Business Finance Guarantee Scheme

The Government has launched a Business Finance Guarantee Scheme for small and medium-sized businesses, to protect jobs and support the economy. The Crown, in partnership with participating approved banks, will support targeted new loans (including increases to existing limits) to eligible businesses, as a response to difficulties caused by COVID-19.

Under the scheme, businesses with annual revenue between $250,000 and $80m can apply to their banks for loans up to $500,000, for up to three years. The scheme will offer a total of $6.25b in loans to New Zealand businesses.

COVID-19 Wage subsidy

The modified wage subsidy scheme will support employers and their staff to maintain an employment connection and ensure an income for affected employees, even if the employee is unable to actually work any hours.

If you have any questions as to the relief options available to you, please do not hesitate to get in touch.
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