7. Question No. 7—Small BusinessPAUL EAGLE (Labour—Rongotai) to the Minister for Small BusinessQuestion No. 7—Small Business7. PAUL EAGLE (Labour—Rongotai) to the Minister for Small Business: What actions has the Government taken to support small businesses to respond to COVID-19?Hon STUART NASH (Minister for Small Business): The Government has taken decisive and considered action to support small businesses through the COVID-19 pandemic. To date the wage subsidy scheme has paid out more than $10.6 billion to more than 1.7 million workers. Of this almost $6 billion has gone to small businesses and around 363000 of their workers. Our $3 billion loss carry-back scheme put into law last week will start paying out in the coming days to support viable businesses with cash flow to help meet operating costs. The scheme has had hundreds of applications in the first few days and this will rise as taxpayers re-estimate their income. These measures are being complemented by the Small Business Cashflow (Loan) Scheme changes to the loss continuity rules and $29 million for consultancy services that small businesses can access. This week we launched the business cash-flow tool on Business.govt.nz. In fact as well as the COVID19.govt.nz website I would encourage all businesses to take a look at the Business.govt.nz website. All of these measures are designed to keep as many New Zealanders in work as possible and cushion the blow on small businesses.Paul Eagle: How do the changes to the loss continuity rules help support small businesses to recover from the impact of COVID-19?Hon STUART NASH: Some small businesses will be looking to raise capital to keep afloat now and to recover in the future. Raising capital however may result in a change to the existing shareholder structure. Relaxing the loss continuity rules will ensure companies in this position can carry forward losses to offset income when they return to profit. Being able to carry forward losses makes the business more valuable and attractive to investors. Deloitte PricewaterhouseCoopers Chapman Tripp KPMG Chartered Accountants Australia and New Zealand the Accountants and Tax Agents Institute of New Zealand and many more private sector firms and organisations have all welcomed this change. As the Prime Minister and the Minister of Finance have said we are constantly monitoring the situation for business and adjusting our support as required.Paul Eagle: What other support measures provided by the Government will help small businesses with working capital?Hon STUART NASH: The Small Business Cashflow (Loan) Scheme will help support small to medium enterprises struggling because of a loss of revenue as a result of COVID-19. Inland Revenue will administer the payments and repayments of this scheme to support firms that have been adversely impacted. Applications will be open from 12 May 2020 to 12 June 2020. Eligible businesses and organisations are entitled to a loan of $10000 plus a further $1800 per equivalent full-time employee up to a maximum of $100000. The interest rate will be 3 percent however interest will not be charged if the loan is fully paid back within one year. It's a scheme that reflects a targeted and balanced approach to recovery for viable businesses.