If your business or organisation was not receiving revenue but had taken active steps to get market ready at the time you applied (it was pre-revenue), the 30% drop in revenue needed for loan eligibility was calculated as below.
For loans between 12 May 2020 to 27 January 2021
If you applied for a loan between 12 May 2020 to 27 January 2021 businesses could include a fall in projected capital income as 'revenue' where both of the following applied:
- they had no revenue other than seed or venture capital, or Government funding
- they were recognised by Callaghan Innovation as a legitimate research and development start up business.
The meaning of projected capital income is defined in the wage subsidy scheme.
Declaration - 2020 COVID-19 Wage Subsidy Scheme - Work and Income
For loans after 27 January 2021
If you applied for a loan after 27 January 2021 and your business or organisation did not receive any revenue (it was pre-revenue), you needed to have had a 30% drop in capital receipts due to the impact of COVID-19.
Capital receipts included external funding raised by businesses or organisations to get market ready. External funding included:
- debt funding (for example, bank funding and debt funding from external investors)
- equity funding
- grant funding
- fit-out contributions (for example, a landlord may have contributed to help get an applicant’s business market ready).
Capital receipts did not include:
- funding a self-employed person provided to their own sole trader business
- funding a shareholder (or other associated person) in a close company provided to that company, and funding associated persons provided to other types of closely held business or organisation
- Covid-19 assistance grants such as the Resurgence Support Payments (RSP) or Covid-19 Support Payments (CSP).
Pre-revenue businesses or organisations needed to keep records about how the drop in capital receipts was due to Covid-19.