Financial Support

Covid-19 financial support for businesses

Overview of support available at different alert levels

All of these COVID-19 support initiatives have eligibility requirements that must be met.  See below for details.

The Resurgence Support Payment (RSP) is not automatically activated each time the COVID alert level rises from level 1. Generally, the Government will make a decision about activating the RSP if the alert level is raised for at least 7 days.

 

Alert Level 1

Alert Level 2

Alert Level 3

Alert Level 4

Resurgence Support Payment

 

yes

yes

yes

Wage Subsidy

 

 

yes

yes

Leave Support Scheme

yes

yes

yes

yes

Short-Term Absence Payments

yes

yes

yes

yes

Small Business Cashflow (Loan) Scheme)

yes

yes

yes

yes

Business Finance Guarantee (Loan)

yes

yes

yes

yes

Business Debt Hibernation

yes

yes

yes

yes

 

Resurgence Support Payment 

A Resurgence Support Payment may be activated if the alert level increases from Level 1 for a week or more. Businesses and organisations will be eligible if they experience a 30% drop in revenue over a seven day period after an alert level increase and meet other eligibility criteria. This drop is compared to a typical seven-day period in the six weeks before the increase in alert level.

This payment is not a loan, so does not need to be repaid. The payment must be used to help cover business expenses such as wages and fixed costs. Applications will remain open for 1 month after the return to Alert Level.

Find out more about the Resurgence Support Payment, your edibility or the application process here.

  

Wage Subsidy Scheme

To be eligible for the Wage Subsidy August 2021 you must have had, or you predict will have at least a 40% decline over the period between 17 August 2021 and 31 August 2021 inclusive compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to Alert Level 4 on 17 August 2021. You need to be able to show that the revenue drop is due to the change in alert level, not just COVID-19 in general.

More information is available here.

Wage Subsidy Scheme revenue calculator [XLSX, 22 KB]

Short-Term Absence Payment

A COVID-19 Short-Term Absence Payment is available at all Alert Levels to employers to pay workers who follow public health guidance and are staying home while waiting for a COVID-19 test result. It’s also available to eligible self-employed workers. To be eligible, workers need to be unable to work from home and need to miss work while waiting for the test results.

The payment is $350 for each worker. Employers or the self-employed can apply for any worker once in any 30-day period.

More information and how to apply

Leave Support Scheme

The COVID-19 Leave Support Scheme provides a payment to businesses to pay their workers who meet certain health criteria, eg they have COVID-19. This is also available if you’re self-employed.

If you, or your staff have been told by a health official to self-isolate and cannot work from home, you can apply for the COVID-19 Leave Support Scheme. This support will be paid as a lump sum covering two weeks (you can reapply if required). 

Leave Support Scheme  — Work and Income

How to apply for the Leave Support Scheme  – Work and Income

Small business cash flow loan scheme (SBCS)

Government will provide loans to small businesses, including sole traders and the self-employed, impacted by COVID-19 to support their cash flow needs. Applications have been extended and are now open until 31 December 2023.

You can apply through myIR.

The small business cash flow loan scheme will provide assistance of up to $100,000 to businesses employing 50 or fewer full-time employees. This includes sole traders and self-employed businesses.

Details of the loans include:

  • $10,000 to be provided to eligible businesses
  • an additional $1800 per equivalent full-time employee
  • interest free if the loan is paid back within two years
  • an interest rate of 3% for a maximum term of five years
  • repayments not required for the first two years
  • you must show at least a 30% drop in revenue due to Covid-19, measured over a 14-day period in the past 6 months
  • maximum amount you can borrow depends on the number of full-time and part-time employees.

Use the small business cash flow loan scheme eligibility tool and find out how to apply.

COVID-19: Small business cash flow loan scheme eligibility tool

Applications are open until and including 31 December 2023 through myIR. Go to the 'I want to' section, and select 'Apply for the small business loan'.

Most applicants will receive their loan payment in full from Inland Revenue within five working days. You don’t have to accept the full loan amount you’re offered, and can decide to take a smaller loan.

Tax and ACC support

If you’re having difficulties meeting your tax obligations due to COVID-19, Inland Revenue has various support schemes and options to help.

COVID-19 business and organisations 

ACC levy invoices for the 20/21 financial year would usually have been sent from 1 July, but will now be sent in October. ACC has more information about delayed invoices and guidance to help.

Easing the COVID-19 burden on businesses

If you are having trouble making ACC payments, ACC has guidance to help. If you are no longer in business, it’s also a good idea to let ACC know.

General COVID-19 information for businesses 

Business debt hibernation

Business debt hibernation is a government initiative created in response to COVID-19. It helps companies, trusts, and other business entities affected by COVID-19 to manage their debts. Applications are open until 31 October 2021.

If business debt hibernation is right for your business, this is how it helps you manage your debts.

  • You set up an arrangement for your existing debts, eg paying your creditors only a percentage of what you owe them on time and delaying the rest.
  • You get up to a month of protection while you set up the arrangement, meaning most creditors can’t enforce their debts, eg applying for your business to be liquidated.
  • If your creditors agree, you get a further six months of protection.

Use the business debt hibernation decision tool to find out if it’s a good option for your business and if so, how to get started.

COVID-19: Business debt hibernation

Business finance guarantee scheme

More small and medium-sized businesses may be eligible for the Business Finance Guarantee scheme, with a simplified and expanded scheme now in place.

Participating lenders can provide new loans, increased limits to existing loans or a revolving credit facility to eligible businesses. The scheme supports lenders by government taking on the default risk of up to 80% of the loan.

Changes to the scheme mean the loans can be used for capital purchases and projects relating to, responding to or recovering from the impacts of COVID-19. This means businesses can use the credit, for example, to modify their premises to operate at different alert levels or meet changing demands. Banks can lend to businesses with an annual revenue of up to $200m, while loans are available from non-bank lenders for businesses with annual revenue up to $50m. There is a lending limit of $5m, or $3m from a non-bank.

The Crown has also clarified that it will guarantee its share of a scheme loan without a personal guarantee – though lenders make their own lending decisions and may have their own requirements. Borrowers are still liable to pay the loan back in the usual way.

Business Finance Guarantee scheme