15 May 2020
We welcome the Governments ‘rebuilding together budget’ with the focus on jobs and infrastructure which is good for the economy. The $3.2 billion extension of the wage subsidy is welcome. This is for a further 8 weeks for businesses who have suffered a 50% reduction in turnover from 10 June, over the 30 days prior to application compared to last year. You can find out more about the budget including more support for SMEs, R & D support, a trades and apprentice package, tourism package and infrastructure with a summary from BusinessNZ here.
There is a lot of interest in the Governments small business cashflow loan scheme. The interest free loans are for a year to small businesses impacted by the covid-19 economic shock to support immediate cashflow needs and meet fixed costs. The scheme will provide assistance of up to $100,000 to firms employing 50 or fewer full time equivalent employees. The scheme will provide $10,000 to every firm and in addition $1,800 per equivalent full-time employee. Loans will be interest free if they are paid back within a year and open on 12 May and close on 12 June. You can find out more here.
To help with the transition to the different alert levels, we have a free member Business Support Resource Pack which has a number of resources and templates to cover everything you need to support your business through the transitions in Alert Levels. You will find these on the member only part of the website.
As always any feedback is welcome.
Ngā mihi nui \ with kind regards,
Virginia Nicholls | CEO | www.osea.org.nz