Applications can be made from today by going into MYIR for the entity (IRD number) that received the wage subsidy. On the front page in the "I want to…" section there is an option "Apply for a Small Business Loan".
If you complete and submit the "form" payment should be made within 5 days and the loan contract with the terms should be received within 5 to 10 days.
The loan effectively becomes repayable if the business:
- ceases or is sold,
- does not qualify for a wage subsidy (although it received one),
- does not use the loan in the business as warranted in the application.
The default interest rate is the IRD Use of Money interest rate plus 3%.
The whole set up looks better thought through than the wage subsidy scheme which was obviously set up in a huge rush with instructions changing over time.
There is every reason for eligible businesses to apply for the loan, but please remember it is a loan and will have to be repaid.