COVID-19 support for businesses (17/8/2021)
Significant support is available for your business following the rise in alert levels announced by the Prime Minister on 17 August 2021. There are a number of support initiatives that have specific eligibility requirements that must be met. Please go to the link for each support type for details on the eligibility criteria.
These support initiatives include:
• The Wage Subsidy Scheme (WSS) - Wage Subsidy
This payment will be available nationally to help eligible businesses continue paying staff and protecting jobs. The payment will be available to any business or organisation in New Zealand that experiences at least a 40% drop in revenue or a 40% decline in capital-raising ability over the period between 17 August 2021 and 30 August 2021 inclusive.
To reflect increased wage costs, the payments have been increased to $600 for full-time employees and to $359 for part-time employees. This will be open to applications from 9am on Friday 20 August 2021, with applications initially open for two weeks.
For more information on the WSS, see https://www.workandincome.govt.nz/covid-19/index.html
• The Resurgence Support Payment (RSP) - Covers General Business Expenses
This payment will be available to any business or organisation in New Zealand that experiences at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to a COVID-19 alert level increase of level 2 or higher. This will be open to applications from 8am on Tuesday 24 August 2021 and will be available until one month after a nationwide return to Alert Level 1.
For more information on the RSP, see
• The Leave Support Scheme (LSS) - Wage Subsidy
This payment provides a two-week lump sum payment of either $585.80 per week for full-time workers or $350 per week for part-time workers who must self-isolate and cannot work from home. The rates increase to either $600 per week for full-time workers or $359 per week for part-time workers from Tuesday 24 August 2021.
For more information on the LSS, see
• The Short-Term Absence Payment (STAP) - Wage Subsidy
This payment provides a one-off (once per 30 days) payment of $350 for workers who must miss work due to a COVID-19 test and cannot work from home. The rate increases to $359 from Tuesday 24 August 2021.
For more information on the STAP, see https://www.workandincome.govt.nz/covid-19/short-term-absence-payment
• The Small Business Cashflow Loan Scheme (SBCLS) - Loan
This scheme supports small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19. If you have previously applied for a SBCLS Loan and have fully repaid it, you can apply again. Applications are open until 31 December 2023.
For more information on the SBCLS, see https://www.ird.govt.nz/covid-19/business-and-organisations/sbcs
• Business Debt Hibernation (BDH) - Ability to Defer Payment of Creditors
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.
For more information on the BDH, see https://www.business.govt.nz/covid-19/business-debt-hibernation
• Overview of Support Available at Different Alert Levels