Changes to Small Business Cashflow Scheme (2022)

Updated: Mar 1


Question mark, Covid-19. Information

Alongside the Covid-19 Support Payment, the government has also made some changes to the Small Business Cashflow Scheme (SBCS). The changes are to support business with cashflow pressures as a result of Covid-19.


The following changes will be made before the end of March - currently, there is no set date yet.

  • Base loan amount is increased to $20,000 (up from $10,000) + the same $1,800 per Full-Time Equivalent employees (FTE).

  • The first 2 years of existing loans will become interest-free provided the loan is not in default. Interest of 3% pa will only be charged from the 1st day of year 3. Originally the loan is interest-free only if you pay off the loan within 2 years.

Existing Borrowers


If you already have an SCBS loan, you can apply for a top-up loan. The top-up is an additional $10,000 plus any amount you didn't borrow in your initial loan. You can draw down as a lump sum or as up to 4 smaller instalments over time before the end of the scheme on 31 December 2023.


  • Your original loan will still be a 5-year term with the first 2 years being interest-free

  • Your top-up loan will be the same term but starts from the date of the first drawdown ie if you choose to draw down in instalments, it will be the first drawdown date.

New Loans


You can apply for the whole new maximum amount if you have not done so before or if you have paid back your original SBCS loan.


Eligibility Criteria


To recap the eligibility criteria for the SBCS:

  • Must have 50 or fewer FTE

  • Need to have been in business for at least 6 months

  • Experienced at least a 30% decline in actual revenue

  • Business must be viable and have a plan to ensure it remains viable

  • The loan must be used to pay for core operating costs of your business or capital costs intended to help your business adapt to Covid-19 circumstances

Full details of the eligibility - please click here


Term of SBCS Loan


Terms of the new SBCS

  • 5-year loan term

  • 2-year interest-free period

  • Interest rate of 3% pa applies from day 1 of year 3

  • Can be drawdown as a lump-sum or as up to 4 smaller instalments before 31 December 2023


As soon as we have the full details of the new SBCS, we will update you.