Month: April 2025

For most borrowers, the five-year loan term of their Small Business Cashflow Loan (SBC) contract ends in 2025. Avoid unnecessary default interest and think about repaying your loan now.

What you need to do

There are a few things you can do to check you’re on top of your loan.

• Log in to myIR to check how much you owe and when your final repayment date is.
• Make extra payments in myIR to avoid default interest charges of 13.88%. Make sure you select your SBC loan as the debt you want to pay.
• Set up a repayment plan if you cannot repay the outstanding balance in full. To set-up a plan, you need to send us a message in myIR or call us.

Having a repayment plan in place means your interest rate will be 3%.

Already have a repayment plan?

If you haven’t kept up to date with your repayment plan, now’s the time to get back on track.

You can avoid unnecessary default interest by setting up regular monthly payments to lower your balance as quickly as possible.

If you have more than 1 repayment plan, use your unique repayment plan identifier when making repayments. Your repayment plan identifier is called the ‘Media Number’ and you can find it at the top of letters you get from us.

What happens if you do nothing?

If your SBC loan is unpaid 20 working days after the final repayment date, the loan will default and we may:

• demand full payment
• add default interest of 13.88% to the outstanding loan balance
• take legal action.

More info: If you default on the Small Business Cashflow Scheme loan

More info: Interest and Repayment

Source:  IRD:  https://www.ird.govt.nz/sbc-loan

Disclaimer
Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.

Between 5 October 2023 and 5 April 2026 there are two Acts in force – which one applies to your society depends on which Act it’s registered under. 

The Incorporated Societies Act 2022 Act (“2022 Act”) applies if your society:

• registered for the first time on or after 5 October 2023, or
• registered before 5 October 2023 and has reregistered since then.

The Incorporated Societies Act 1908 (“1908 Act”) applies if your society:

• registered before 5 October 2023, and
• has not yet reregistered.

If you’re not sure which Act applies you can check by searching the Incorporated Societies Register for free. How to search the register 

Existing Societies Must Reregister

If your society wants to continue operating as an incorporated society it must reregister under the 2022 Act before April 2026. You should understand what it means to reregister and what happens if your society doesn’t reregister.

There are a few things your society will need to do before it reregisters, such as preparing some documents and possibly adopting some new processes to comply with the 2022 Act.

For example, under the 2022 Act, your society will need to —

• provide a constitution that’s compliant with the 2022 Act.
• include appropriate dispute resolution procedures in its constitution.
• have a committee that’s responsible for managing the operation and affairs of the society.
• have at least 10 members.
• provide at least one person’s contact details (these details will be used by the Registrar to contact the society).

Until your society reregisters it must operate under and comply with the 1908 Act.

What happens to your society if it doesn’t reregister?

If your society doesn’t reregister before 5 April 2026, it will cease to exist. This means it would no longer be an incorporated society which has the following implications:

• This removes your right to make decisions on behalf of your society, such as, deciding what happens to any assets it owns. The Registrar could direct how to distribute them instead.
• This takes away the separate legal identity your society previously had. This means members could be held personally liable for debts or obligations (such as leases) owed by the society. Similarly, your society could not sign any new contracts in its name.
• The name your society used will no longer have any protection – another group could incorporate using the same name.

Society-based charitable trust boards can reregister as an incorporated society

Society-based charitable trust boards – those incorporated under the Charitable Trusts Act 1957 — can now choose to reregister under the 2022 Act or remain registered under the Charitable Trusts Act 1957.

If your organisation chooses to reregister it would change entity type:

• from a charitable trust board
• to an incorporated society.

You may need to seek expert advice from your lawyer, accountant or other professional to help you decide which organisational structure best suits your needs.

• If you decide to reregister, you can apply any time
• If you decide not to reregister, your trust board will remain on the Charitable Trusts Register. You will be able to continue operating as you do now.

Learn more about charitable trust boards reregistering as incorporated societies: Source:  IRD: IncorpSocieties

Disclaimer
Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.