Inland Revenue is still chasing more than $850 million from small to medium businesses — five years on from the start of the Small Business Cashflow scheme.
More than 129,000 businesses were issued loans totalling $2.4 billion five years ago when the loan was made available on May 12, 2020, to small to medium businesses affected by the Covid-19 pandemic.
The average loan amount approved was $17,000.
Most loans were taken out in the first few months of the scheme with a five-year repayment period, meaning many were now reaching their cut off point.
As of April 30, 2025, however, just 64,000 people had repaid the loan in full, with a total loan balance of $853 million still owing.
From next month, Inland Revenue would default a loan if it had not been paid off. Default interest, which was calculated based on use of money interest of 10.88% plus standard interest rate of 3%, would be charged.
Around 14,300 customer’s loans were in default, owing just over $242 million.
Customers behind on their repayment plan would be alerted by Inland Revenue and reminded that repayment was required.
Since February, Inland Revenue had attempted to contact more than 1500 customers who had defaulted loans and tax debt. Close to $10 million of SBC and tax debt had been recovered as a result.
