SBCS interest chargesIt has now been two years since the Small Business Cashflow Scheme (SBCS) was introduced, signalling the end of the interest-free period for those initial loans. The scheme was introduced in May 2020 to support small to medium businesses and organisations struggling with revenue loss due to the Covid pandemic. The loans were provided interest-free for the first two years. Now any loans not repaid in full will be subject to an annual interest rate of 3% as they hit their two-year anniversary date.

If your business took a loan under the scheme and has not repaid it in full, the IRD should be making contact via myIR regarding when interest charges will start. Interest will be charged from the first day of the third year of the loan.