Question :
hi there other than the wage subsidy is there any other support out there for small businesses I have 2 businesses Renovations and a labour hire…thank youMoana

Question submitted 16/04/20 @ 06:54am
Industry: COVID-19 Funding & Support
  • Hi Moana,

    See the link below for an article on the packages released yesterday. I’d be interested in your thoughts on whether this is “enough”



    Morena Moana – I typically go this page https://covid19.govt.nz/businesses-and-employees/employers/ as a place for most support programmes being offered nationally – it is a good place to start. The wage subsidy and bank loans are the major programmes Government has put out there. I would also think about who your key suppliers are and ask them to support you as well through this time. Andy

    Hi Phil,

    That won’t be enough. We purchased a boutique motel in December and by March all our forward bookings dried up. We have obtained the wage subsidy for 12 weeks, which does help but there is still a huge amount of recurring expenses just keeping the place running, channel managers, gas, rates, mortgage, phones,fire system monitoring, memberships. sky TV and the list goes on. We cannot get a mortgage holiday even though the motel is our home as well. We must get either another wage subsidy and no rates or mortgage repayments then we might survive.

    I agree Julie -its not enough for most businesses at present. The loan is just a loan. Have you looked into the tax credit scheme?

    Hi Phil
    We definitely do not want a loan and accrue debt.

    We took ownership of the motel in December 2019 after relocating home from Australia, so have no tax debt either 🙁

    Are you located somewhere where extra staff required to undertake some of the Covid work and may be being temporary housed i.e. MoH, nurses, Police or Defence… and returning NZ’ders requiring self-isolation…
    A few accommodation providers have been able to secure rooms – either occupied, or on “stand-by” for officials across all of the above.

    We are in a small beach resort, the larger hotels are being used for temporary housing for police etc. We are on the register offering the above.

    The $10K interest-free loan and deferral of rates will assist in the short term, but it all needs to be paid back at some time. Hoping the NZ/AU bubble takes off as soon as it can.

    Yes, that will help and I’m hoping we will hear more for tourism affected businesses.
    If there is a way to get in touch and leverage contacts in the Motel Association and Tourism Industry Association to work with banks to get relief from principal payments on the mortgage.
    You should also think about how you can best market to the domestic economy as we go to Level 2 (in-regional travel is ok, inter-regional isn’t) utilising your customer database, lean on your regional tourism organisation (RTO) and consider social media campaigns. Your RTO will hopefully be working hard to plan for igniting domestic tourism to your part of NZ… get in touch with them if you haven’t, offer up a package for them to promote you (rather than discounting as that is hard to recover from) i.e. stay 4, pay for 3. (kind of reverse discounting, but not fixed for each and every night)… Or partner up with a surf school operator or fishing charter and local café to create a ‘package’…
    Hopefully a few ideas…

    Hi Jonathan,

    Doing most of the above, we will be putting out an offer to our database and people we have met since taking over the business and have been active on social media. Redoing our website. Have a package deal with the local restaurant and spa for discounts. The bank has given us 3 months interest-only.. which isn’t enough. No doubt they will still make a profit this year.

    Good to hear we are on the right track.

    Hi Moana,

    Have a read of this DLA Piper article on the Governments small business cashflow scheme, might help.



    I have asked a similar question on another thread. I think what the information that the Industry experts give to the owner of the motel “Julbar” wont work at all. She needs more tourists and while this will be increased it wont be enough to save every motel. Julbar I feel for you as I have a similiar situation with my cafe. The bank wont lend us money as the business is at risk. I spent last year paying off the mortgage on my home that I used to buy the cafe. There is little options other than closing down.

    Hi Andrew
    Can you get that $10K small business loan through the IRD? That will help for a little while.
    It is a very difficult time especially as you have paid off your mortgage.

    Thanks for all the replies. But I cant get a loan as when I close the cafe, I wont have any income. The bank will look at my current business, estimate the future sales for next 1 year, which are low. And refuse the loan. I cant get the IRD small business loan as due to COVID, the business is not viable. It was viable before COVID. But the revenue has not bounced back. I dont think the government really understands small business.

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