Hi there accounting fans!
Now the process of applying for the SBC loan is SUPER simple. But that being said, I will still walk you through the process step by step to help you clear any doubts, misgivings or confusion you may have about the whole process.
So let’s get started now!
First of all you will want to login to your My IR account. Then, on your home screen, head to the window in the top right corner of the screen and click ‘Apply for a Small Business Loan’
That will then take you to this screen, which gives you a brief overview of the SBC loan and stuff:
Make a note of the things written here – they are quite important. Then click ‘next’. You will be then taken to this screen:
Here is the screen where you enter in your NZBN (don’t have one? – get one here) and make the necessary declarations. Be sure to read through each declaration carefully and take the time to understand what each one of them means. For more information – check out my write up on the SBC loan over here. Click ‘next’ when done.
Then you will come to this screen:
Ok, so in this example here, this guy (Me – haha) received a part-time wage subsidy for self-employed individuals. So he received only $4,200 (this was to reflect the part-time nature of my self-employment last year).
Note that the FTE is calculated based on how much you or your business received in terms of the wage subsidy. This means that your total wage subsidy received can be a combination of all full-time and part-time employees you have. This number is then divided by $7,029.60 to determine the FTE (rounded up – hence why my business has 1 FTE despite applying for the wage subsidy on a part-time basis).
For an example of this calculation, check out this IRD link here.
Note that you don’t need to apply for the maximum amount calculated. If you wish to apply for less, click ‘No’ and the greyed out box will turn white and you can put in any amount below the maximum amount in there. Bear in mind that if you apply for less than the maximum amount – you CANNOT request the balance at a later date.
Click ‘Next’ when you are done. You will be then taken to this screen:
Here you will be asked for your bank account details. You can choose to select a different bank account than the one you have registered if you wish. Click ‘Next’ when done. That will take you to this screen:
This is the Loan terms and conditions in all its entirety. A lot of it is standard loan documentation – but you will still want to give it a thorough read to make sure you clearly understand what you are signing up for. For a PDF version of this document, check out this IRD link here. Confirm that you have read the terms and conditions and click ‘Next’ when done.
That will take you to the last screen:
From here you can review your application and click submit. You should hear from IRD regarding the success of your loan application within the next 5 to 10 days.
All the best! Be sure to use that SBC loan correctly and protect your business!
Stay positive!