Finance Minister Grant Robertson has announced a new loan scheme for small business.. Photo: RNZ/Dom Thomas.

The Government will provide interest free loans for a year to small businesses impacted by the COVID-19 economic shock to support their immediate cashflow needs . The Small Business Cashflow Loan Scheme will provide assistance of up to $100,000 to firms employing 50 or fewer full time equivalent employees. Loans will be interest free if they are paid back within a year. After that, the interest rate will be 3% for a maximum term of five years. Repayments are not required for the first two years. Applications will open on 12 May and be managed by Inland Revenue.

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