‘Just start trading’: how to open the door to India
Keynote speaker Dr Reuben Abraham gives a taste of what to expect at the IoD’s Leadership Conference in May.
Small businesses are a vital part of New Zealand’s economy making up 97% of all enterprises. The impact of COVID-19 has seen some businesses folding and many others fighting to survive as they tackle a myriad of issues including operating restrictions, a significant downturn in revenue, supply chain issues, redundancies and a future full of uncertainty. It is a difficult time for many governing these businesses but there is support available to help them stay afloat while the economy adjusts and recovers.
The following support is available:
Economic supportWage subsidy supportThe Wage Subsidy Scheme is designed to support employers adversely affected by COVID-19, and ensure workers can continue to receive an income even if they are unable to work. Eligibility criteria includes having had a 30% revenue drop due to COVID-19. Employers need to retain employees for at least 12 weeks. A Wage Subsidy Extension will be available from 10 June – 1 September 2020 to support employers, including sole traders, who are still significantly impacted by COVID-19. Tax relief and small business cashflow loan schemeTax relief includes:
The Small Business Cashflow Loan Scheme introduces an interest-free loan scheme to some small businesses impacted by COVID-19, administered by Inland Revenue. Applications are open from 12 May – 12 June 2020 inclusive. Details include:
Mortgage holidaysThe Government has announced a six-month mortgage principal and interest payment deferral for affected individuals and SMEs. Business finance guarantee schemeA $6.25b business finance guarantee scheme for SMEs includes:
Insolvency supportThe COVID-19 Response (Further Management Measures) Legislation Act 2020 includes:
See MinterEllisonRuddWatts’ and KPMG’s article Directors’ duties during COVID-19. |
Commercial leasesRent and mortgage reliefThe COVID-19 Response (Further Management Measures) Legislation Act 2020 introduces support for businesses and commercial landlords to manage situations where, because of the impact of the response to COVID-19, businesses are unable to pay their rent and landlords are unable to meet their mortgage payments. Support includes extending the notice period:
The government is also considering options for rent concessions to support New Zealand businesses with rent payments but has ruled out subsidising or freezing rent. Potential rent and outgoings abatementSome commercial leases have clauses relating to circumstances where a tenant has no access to the premises during an emergency, which may give rise to a rent and outgoings abatement during Alert Levels 3 and 4 (but is unlikely to apply in Alert Level 2). This is explained further in MinterEllisonRuddWatts’ articles: |
Professional advice and supportThe COVID-19 Business Advisory SchemeThe government has allocated an additional $25m to enable businesses to access expert advice and support in areas such as HR, health and wellbeing, business continuity, cashflow and finance management, strategy and digital capability. Business owners can access up to $5000 (excl GST) per business from the COVID-19 Business Advisory Fund. Our new online coaching and mentoring service can provide coaching to eligible SMEs. |
Support for Māori businessesTargeted support packagesMāori communities and businesses can access additional help and support designed to meet their specific needs including:
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Support for exporters and importersExport business continuity serviceNZTE has launched a $4m Export Business Continuity Service, in partnership with PwC and Deloitte. Businesses with established export markets can access professional services to help them manage the impacts of COVID-19 on their businesses to a maximum of $5000 per business. Our new online coaching and mentoring service is registered with the NZTE management capability development fund and is open to eligible SMEs. Air freight support packageNZTE and the Ministry of Transport are assisting Air NZ with funding support to provide additional charter flights to help meet air freight capacity demands. NZ marketplaceNZTE has created an online marketplace to help exporters find offers and requests for resources. Tariffs removed on some importsThe government has temporarily removed tariffs on all medical and hygiene imports needed for the COVID-19 response. |
Annual meetings, reporting and rulesRelaxed deadlines and temporary reliefThe COVID-19 Response (Further Management Measures) Legislation Act 2020 includes:
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The Government's COVID-19 website has a financial support tool to help businesses work out what help and support is available to them. Also see Manaaki, an online business advisory support forum.
For a summary of support available for NFPs see our article Governing NFPs through COVID-19 - support is available
We will continue to keep you updated of any significant changes that are relevant to SMEs. This will include updates to resources on this page.