While we are relieved that this lock down did not last beyond the three days in Auckland, as advisors to New Zealand small business across the country, we feel even greater concern for many of us effected this month.
In response to criticism in past lockdowns that business was not being provided with enough support to pay other bills, the government has provided the Resurgence Support Payment. This support payment is in the form of a grant and consists of a base payment of $1,500 per applicant, plus $400 per full time equivalent (FTE) staff member up to a cap of 50 FTEs. This means a business can receive a grant of up to
$21,500. Key eligibility criteria are
The business must have suffered a decline in revenue of 30% or more due to a COVID alert level increase to level 2 or higher. This is calculated by comparing the seven day period during the higher alert level with typical weekly revenue in the six weeks preceding the move from Level 1.
A business cannot receive a payment more than four times the amount their revenue has declined by. The RSP will remain open for applications for one month after the return to alert level 1, from 23rd February 2021.
There is no restriction on what the funds can be used for, unlike the wage subsidy. Business could therefore use this to pay rent, cover the cost of stock that needs to be disposed of due to trading limitations, and so on. Any size business can apply for the resurgence support payment.
This scheme is going to be administered by Inland Revenue rather than the Ministry of Social Development as happened with the wage subsidies.
