Businesses struggling with revenue during the Omicron outbreak can apply for new targeted funding, as announced by the government on Monday 21st February.
Applications for the first payment open on February 28, with payments starting from March 1.
There will be 3 payments in total, available on a fortnightly basis. The new scheme is based on the understanding that the Omicron outbreak will pass over about 6 weeks. This scheme may be extended.
Each COVID Support Payment will be $4000 per business plus $400 per full-time employee, capped at 50 FTEs or $24,000. This is the same rate as the most recent Transition Payment.
There are two comparison periods:
- 5 January 2022 – 15 February 2022
- 5 January 2021 – 15 February 2021
Each CSP has an affected revenue period. For the first payment, the affected revenue period is from 16 February 2022 (the end date will be announced soon). To work out a drop in revenue, you compare the revenue in an affected revenue period to the revenue earned in one of the comparison periods.
For those considering or who have already applied for the Small Business Cash Flow Loan Scheme, there are changes to this as well. We’ll post a separate blog on this topic and update you later.
Who is Eligible?
A business or organisation must have been in business for at least 1 month before 16 February 2022 and experienced at least a 40% drop in revenue over a consecutive 7-day period (7 days in a row) in an affected revenue period, due to one or more COVID-19 circumstances.
To be eligible for the CSP, your business or organisation (including sole traders) must meet all the following.
- Have been in business for at least 1 month before 16 February 2022.
- Be physically present in New Zealand.
- Be viable and ongoing.
- Have a New Zealand Business Number.
- Have had at least a 40% drop in revenue or capital raising as a result of one or more COVID-19 circumstances.
- If the applicant is part of a commonly owned group, this 40% drop also needs to be satisfied across the group as a whole.
- Have taken all reasonably practical steps to minimise the decline in revenue.
- If it is a regulated business or service, have been operating in compliance with the COVID-19 Vaccine Certificate (CVC) requirements for regulated business or services (whether following the CVC or non-CVC rules) for both the comparator period and the affected revenue period.
- Applicants must be 18 years or older and agree to the terms and conditions set out in the application.
- If you break the terms of the agreement, you will have to repay the CSP – with interest.
COVID-19 Vaccine Certificate Requirements
In respect of CVC requirements, eligible applicants for the CSP include the following:
- Businesses or organisations who are not a regulated business or service under the COVID-19 Protection Framework and meet the relevant CSP criteria
- Business or organisation who are a regulated business or service under the COVID-19 Protection Framework, and have been operating in compliance with the requirements for regulated businesses or services (whether following the CVC rules or non-CVC rules) for both the comparator period and the affected revenue period.
You can apply for the CSP in myIR.