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Repaying the Small Business Cashflow Scheme (SBCS)

Have you taken out the Small Business Cashflow Scheme Loan?

For those who took out the Small Business Cashflow Scheme (SBCS) loan when it first became available in May 2020,

the 2-year interest-free period and subsequent repayment period is fast approaching.

FAQ about the SBCS

How long will I have to pay off the loan

You will have 5 years (60 months) to pay off the loan. Repayments are not compulsory in the first 24 months. However, after 24 months, you’ll be required to make regular payments for both the principal and interest.

How do I know when my interest free period ends?

You will receive and SMS or myIR web message reminder 7 days before the 2 year loan anniversary date. These start from 5th May 2022.

What if I don’t pay within this two year period?

The loan will be subject to interest at 3% pa on the remaining loan balance from the first day of the third year of the loan period.

If the loan repayments go into default, interest may be charged for the first two years.

What about interest on top up loans

Existing borrowers who apply for a top up loan will have 2 separate loans with 2 separate interest-free periods. For example, for the:

  • existing SBCS loan, the interest free period applies 2 years from the date the loan was made available to you
  • top up loan, the interest free period applies 2 years from the date the first drawdown of the top up loan was made available to you.

If you choose to receive the top up loan in up to 4 separate amounts (up to the maximum loan amount) instead of a single lump sum, the interest-free period starts from your first drawdown of the top up loan. Any further drawdowns do not create a new interest-free period.

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