$6.25 billion support package available to COVID-19 affected businesses
In a welcome move, the New Zealand Bankers Association announced on 1 April 2020 that $6.25 billion in guaranteed loans will be available to businesses affected by COVID-19. A risk-sharing agreement will support the loans, with the Government covering 80% of the risk ($5 billion) and the banks covering the remaining 20% ($1.25 billion).
Starting from 1 April (and until 30 September 2020), eligible businesses can apply to banks for funding under the Business Finance Guarantee Scheme (Scheme).
Businesses that are New Zealand based and have an annual turnover between $250,000 to $80 million will be eligible under the Scheme for individual business loans up to $500,000 with a maximum term of 3 years. The Scheme is available for new lending only.
The exact terms of each loan will be determined by each bank and normal credit assessment processes will be followed, taking into account COVID-19 circumstances.
Certain funding activities including agriculture, property development and property investment are excluded from the Scheme.
Participating banks include ANZ, ASB, BNZ, Heartland Bank, HSBC, Kiwibank, SBS Bank, TSB and Westpac.
Please contact one of our experts to discuss how we can help you during this time.