Covid-19 Business Update – 12 June 2020
Welcome back to our Weekly Digest. Read on for this week’s update.
No COVID-19 cases in New Zealand!
Here’s the news you’ve definitely already heard: New Zealand moved to Alert Level 1 from midnight on June 8– 101 days since the first virus diagnosis in the country. This comes after the news that the last remaining case has recovered, making us one of only nine countries in the world with zero active cases.
At Alert Level 1, restrictions to work, school, sports, and domestic travel are lifted, but tight border controls remain in place as the virus is yet to be controlled overseas. This basically means that we can return to mostly normal lives.
Most importantly, all businesses can operate, which is fantastic news for everyone! If your business has been hit by the pandemic and you’re looking at ways to adapt, get in touch with us. We’ll help you take stock of where your business is at and identify areas to improve.
Life Under Alert Level 1
While New Zealanders will enjoy the relaxed restrictions now, the importance of keeping basic hygiene measures, such as washing of hands, and still being aware of physical distancing has been emphasised.
Prime Minister Jacinda Ardern also encouraged everyone to continue using the NZ COVID Tracer app to keep a “digital diary” and track their movements. However, for this app to work, businesses need to generate QR code posters and display them at their premises.
If you have any questions on how you can do your part in keeping the virus contained in New Zealand and want to learn other golden rules for operating at Alert Level 1, you can read more guidelines here.
Bounce Back With a New Business Plan
With the restrictions lifted, things are looking brighter for businesses in New Zealand. However, you need a solid business plan in place if you want to come back stronger, especially for those who have been severely hit by the pandemic.
We know that writing a new business plan might be the last thing on your mind right now, as you’re just easing back into normal life. However, it will pay off in the long-run to invest time now! We’ve created a business plan template available for you to download for FREE to make it easier for you. Please get in touch if you’d like to talk about your plan – especially the financial parts like cashflow.
Small Business Cashflow (Loan) Scheme Extended
The Small Business Cashflow (loan) Scheme (SBCS) is a one-off loan which has been introduced to support small- to medium-sized businesses with 50 or fewer full-time employees. The scheme includes sole traders and self-employed and has been extended for a further six weeks to 24 July 2020. The maximum loanable amount is $10,000 plus $1,800 per full-time-equivalent employee, and there will be no interest if the loan is fully repaid within one year.
If you need an immediate boost in your cash flow, the SBCS loan may be suitable for you. You can find more information here, or drop us a message so we can help you assess if you are eligible and answer any questions.
Application for Wage Subsidy Extension Now Open
Applications for the Wage Subsidy Extension opened this week (9am on 10 June 2020 to be specific), and will be available until 1 September 2020. This ensures that employees of affected businesses continue to get paid. Last week, the government announced a change in criteria from a 50% decline in revenue to a 40% revenue drop.
This means that to be eligible for the financial support, your business must have had at least a 40% revenue loss for a continuous 30-day period in the last 40 days before the application. If you have any questions about this form of financial support, contact us today and we’ll talk you through it.
Over the last few weeks, we’ve brought you updates on various government initiatives aimed at easing the financial burden of businesses and shared guidelines on how to operate at various alert levels.
Although we will continue keeping you posted on new financial support available or if anything changes on existing ones, we will also turn our focus on helping you towards your path to recovery, as the COVID-19 situation looks a lot more positive in our country now.
Please feel free to get in touch with us for more personalised business advice tailored to your unique needs.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.