Covid-19: Financial Support 

The latest news and updates about the financial support packages available from Government. Get in touch to see how we can help you.

UPDATED AS NEW INFORMATION IS AVAILABLE - LAST UPDATED 7 JANUARY 2022, 10:00AM

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COVID-19 Support P

 

COVID-19 Support Payment

The COVID-19 Support Payment (CSP) is a series of three fortnightly payments beginning 16 February 2022

The CSP is a payment to help support viable and ongoing businesses or organisations which have experienced a 40% or more drop in revenue as a result of 1 or more of the following COVID-19 circumstances:

  • the widespread presence of COVID-19 in the New Zealand community

  • the public health legislative measures taken in order to reduce the spread of COVID-19 in the New Zealand community

  • any business circumstances that are, or are reasonably likely to be, a consequence of the circumstances described above.

The COVID-19 circumstances include but are not limited to:

  • businesses not being able to operate to usual levels due to staff having to self-isolate

  • businesses impacted by New Zealand based supply chain disruptions

  • lower retail and recreation movements in a region (for example in a CBD) due to customers working from home or self-isolating.

Each CSP payment has an affected revenue period 

The affected revenue periods for each CSP payment are as follows.

  • First CSP – 16 February 2022 to 4 April 2022.

  • Second CSP – 7 March 2022 to 4 April 2022.

  • Third CSP – 21 March 2022 to 4 April 2022.

To work out a drop in revenue, you compare the revenue in an affected revenue period to the revenue earned in the comparison period. The comparison period is a typical 7-day revenue period in the 6 weeks between 5 January 2022 and 15 February 2022. Alternatively, you can use a typical 7-day revenue period in the 6 weeks between 5 January 2021 and 15 February 2021.  

Please note that this alternative comparator period (5 January 2021 to 15 February 2021) will be available for applications made from 14 March 2022 onwards, for all three CSPs.  

If you are a business with highly seasonal revenue, you may select a 7-day comparison period which is before 5 January 2022 and which may be from a past year, which reflects your typical revenue. 

For more information, email our COVID-19 support specialist here:  covid-19@crossgroup.co.nz

More information regarding the COVID-19 Support Payment is available here:

https://www.ird.govt.nz/covid-19/business-and-organisations/covid-19-support-payment

COVID-19 Leave Support Scheme

If your employees have been advised to self-isolate and they cannot work from home, you can apply for the COVID-19 Leave Support Scheme for them. You can also apply if you are self-employed or a sole trader. 

The scheme means employees and self-employed people receive an income if they cannot work from home while they’re self-isolating. 

You can apply for the payment if your employees are not able to be at work, cannot work from home and have advised you that:

  • they have COVID-19 and must self-isolate until a medical practitioner advises they can leave self-isolation

  • they have been directed to self-isolate, or are the parent or caregiver of a dependant who has been directed to self-isolate, by a Medical Officer of Health (a Medical Officer of Health is defined in the Health Act 1956)

  • they are identified as a close contact of someone who has COVID-19, and they have been advised to self-isolate by a medical practitioner or through the National Contact Tracing process

  • they are the parent or caregiver of a dependant who has been advised to self-isolate by a medical practitioner or through the National Contact Tracing process, or

  • they are, or they have household members who are, most at risk of severe illness from COVID-19 (as defined in official Government public health guidance), and have been advised by a medical practitioner to self-isolate.

The COVID-19 Leave Support payment is paid as a lump sum, calculated to cover 2 weeks. You can re-apply after this time if your employees still qualify.

Who is eligible for the COVID-19 Leave Support Scheme, and how to apply

The criteria for getting the COVID-19 Leave Support Scheme changed at 9am on 9 February 2021. If you applied before this time, you need to meet the old criteria.

If your employees need to stay home while waiting on a COVID-19 test result and cannot work from home, the COVID-19 Short-term Absence Payment is available.

 

COVID-19 Short-term Absence Payment

The COVID-19 Short-term Absence Payment helps businesses to pay their employees who cannot work from home while they wait for a COVID-19 test result. This payment is also available to self-employed people.

The payment helps businesses keep paying employees who:

A one-off payment of $350 is available for each employee. You can apply for it once for each eligible employee in any 30-day period. However, you can apply for it again if a health official or doctor tells them to get another test.

Your business should encourage employees to call Healthline or talk to their doctor if they are unwell.

Who is eligible for the COVID-19 Short-term Absence Payment, and how to apply

The COVID-19 Leave Support Scheme is still available for businesses to help pay employees who need to self-isolate for other reasons and cannot work from home.

For more information, email our COVID-19 support specialist here:  covid-19@crossgroup.co.nz

More information regarding the Covid-19 Short-term Absence Payment is available here:

https://www.workandincome.govt.nz/covid-19/short-term-absence-payment/index.html

More information regarding the Assessment and testing for Covid-19:

https://www.health.govt.nz/our-work/diseases-and-conditions/covid-19-novel-coronavirus/covid-19-health-advice-public/assessment-and-testing-covid-19

Small Business Cashflow Loan Scheme

 

Organisations and small-to-medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.

In February 2022, the Government announced that the SBCS base loan would soon be increasing to $20,000 (from $10,000). This means that for new loans the amount that can be borrowed will be $20,000, plus $1,800 per full-time equivalent employee (up to 50 employees). The loan repayment period remains 5 years (60 months).

Existing borrowers will also benefit from this change as they will be able to apply for a top up loan of $10,000, plus any amount they were eligible for but did not take in their initial loan. This will be open for applications from 21 March 2022.

The first 2 years of existing and new loans will be interest-free provided the loan is not in default. Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period.

This change will take effect from 21 March 2022.

Apply for the Small Business Cash Flow Loan

For more information, email our COVID-19 support specialist here:  covid-19@crossgroup.co.nz

More information regarding the COVID-19 SBCFL is available here:

https://www.ird.govt.nz/covid-19/business-and-organisations/small-business-cash-flow-loan

Business Finance Guarantee Scheme

 

Your small or medium-sized business may be eligible for a Business Finance Guarantee Scheme loan.

These loans can support operating cashflow and capital assets and projects related to, responding to or for recovering from the impacts of COVID-19.

What is available in the scheme

Participating lenders can provide to eligible businesses:

  • new loans

  • increased limits to existing loans

  • revolving credit facilities.

Participating banks and non-banks, for example building societies, can lend outside of their normal lending criteria.

Participating banks and non-banks, for example building societies, can lend outside of their normal lending criteria.

If you borrow from a bank, you could borrow up to $5 million for a term of up to 5 years.

If you borrow from a non-bank, you could borrow up to $3 million for a term of up to 5 years.

The scheme is supported by the Government, which takes up to 80% of the scheme loan’s default risk.

No personal guarantee is required. Participating banks and non-banks make all lending decisions. You must still pay the loan back, with interest, as you would usually.

Find out if your business is eligible, and how to apply

For more information, email our COVID-19 support specialist here:  covid-19@crossgroup.co.nz

More information regarding the COVID-19 SBCFL is available here:

https://www.treasury.govt.nz/information-and-services/new-zealand-economy/covid-19-economic-response/measures/bfg

Apprenticeship Boost

 

Support will be available to employers of first-year and second-year apprentices in a Tertiary Education Commission-approved New Zealand Apprenticeship or Managed Apprenticeship programme.

The amount that can be claimed will vary depending on when an apprentice started their training programme and when they reach 24 months. Employers can claim:

  • $1,000 a month for eligible apprentices in the first 12 months of their training programme

  • $500 a month in the second 12 months of their training programme.

Funding will be available until April 2022.

Employers are required to top up the funding they receive to ensure their apprentices receive at least the minimum or training wage they are legally entitled to.

Click here for more information about Apprenticeship Boost initiative, and how to apply