Insolvency relief and support for businesses and individuals impacted by COVID-19
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Keeping businesses viable and New Zealander’s employed are our Government’s main priorities during these uncertain times. New legislation has been passed which could protect your business, allowing you to continue trading and keep your staff employed.
One-off government loans are available for businesses and organisations impacted by COVID-19, including sole traders and the self-employed, to help with cash flow. Applications are open from 12 May to 12 June 2020 and can be made through myIR.
Government has launched a business finance guarantee scheme for small and medium-sized businesses, to protect jobs and support the economy. The Crown, in partnership with participating approved banks, will support targeted new loans (including increases to existing limits) to eligible businesses, as a response to difficulties caused by COVID-19.
A Wage Subsidy Extension payment will be available to support employers, including sole traders, who are still significantly impacted by COVID-19 after the Wage Subsidy ends.
The COVID-19 Business Debt Hibernation regime will enable companies and other business entities affected by the pandemic to place existing debts into hibernation for up to 7 months.
A temporary loss carry-back scheme has been introduced by the IRD to support businesses in the current uncertain economic environment. Businesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before.
If you employ staff in your business Employment NZ offers support and advice if the business has been impacted by COVID-19.
Struggling to meet payments?
If your business is unable to meet its debts as they become due, it's important that you seek advice to find out more about your options. Information to help you understand your business debt can be found on our website here.
For many there will be lots of uncertainty about what happens now that alert levels are reducing and we return to a new norm.
If you are struggling to pay your debts there are people who you can turn to for help and advice. Our “People who can help” page will point you in the right direction to find advice in your local area.
Employment NZ provides specific information for people who are worried about the impact COVID-19 will have on their employment. There are some helpful links below:
Work and Income are working hard to ensure that there is support available quickly during challenging times. Find out more about the support which is available for those impacted directly from the website(external link).
Struggling to meet payments?
If you are unable to pay your debts as they become due, it's important that you seek advice to find out more about your options. Information to help you understand your debt and the options available to you can be found on our website.