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Events of defaults are set out under clause 9 of the Small Business Cashflow Scheme (SBCS) terms and conditions (a copy of which is provided to you as part of the SBCS loan application). The most common defaults include:

  • you did not make repayment by the due date of your repayment plan
  • your business ceases or is sold
  • you enter bankruptcy, liquidation or other creditor arrangement
  • you gave false or misleading statement or declaration in the loan application
  • you used the loan funds on non-business expenses or the funds are passed through to the shareholders or owners of the business.

Defaults can occur at any time after you have entered into the SBCS loan contract. They may include the time of making the declarations, if the declarations are untrue, inaccurate, or misleading, and at a later point in time, for example, a borrower receives the loan and later ceases to carry on the business for which the loan was provided, passes through the loan funds to the shareholders or owners of the business, or uses the loan amount on non-business expenses.

You are not eligible for a top up loan (including further drawdowns) or a second loan if you have defaulted on any earlier SBCS loan, even if the default has been remedied to the Commissioner’s satisfaction.

If you have received the SBCS loan and now think you were not eligible

If you received the SBCS loan and were not eligible, or a default has occurred, you need to repay the loan in full right away. 

If you have any issues with repayment, you need to let us know as soon as possible. The easiest way to let us know is in myIR:

  • from the SBCS account, click ‘more…’
  • click ‘Send a message’
  • under the Category heading select ‘Other’ In the subject box, please type ‘SBCS disclosure’.

We will be in touch if we require any other information.

Last updated: 15 Aug 2023
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