Inland Revenue is still chasing more than $ 850 million small businesses, five years after the start of the small cash flow scheme.
Loans were issued to more than 129,000 companies for a total of $ 2.4 billion five years ago when the loan was made available on May 12, 2020, to small and medium-sized companies affected by the COVID-19 pandemic.
The average loan amount approved was $ 17,000.
Most loans were obtained in the first months of the scheme with a five -year refund period, which means that many were reaching their cutting point.
As of April 30, 2025, however, only 64,000 people had paid the loan as a whole, with a total loan balance of $ 853 million still owed.
From next month, Inland Revenue could not pay a loan if it had not been paid. The default interest would be charged, which was calculated based on the use of monetary interest of 10.88% plus the standard interest rate of 3%.
Around 14,300 client loans were in breach, due to just over $ 242 million.
Customers behind their payment plan would be alerted to Inland Revenue and remember that a payment was required.
Since February, Inland Revenue had tried to contact more than 1500 clients who had breeding loans and tax debt. As a result, about $ 10 million SBC and fiscal debt had recovered.