Business Finance Guarantee Scheme
Finance Minister Grant Robertson announced on 1 April 2020 that businesses can start applying for loans under the Business Finance Guarantee Scheme.
The scheme which will offer a total of $6.25 Billion in loans, is set up to support the New Zealand economy during the COVID-19 pandemic.
The Government is guaranteeing 80% of the risk, while the banks are covering the remaining 20%. A normal lending process will be followed by the banks, which will make the lending decisions. Further details can be found on the banks’ websites. On top of the general bank lending terms a 90 day minimum term and a 3 year maximum.
Any business that has been or expects to be impacted by COVID-19, that is:
- A New Zealand-based business
- Has an annual turnover of between $250,000 to $80 million at the end of its 2019 financial year
- Operates in a sector that is not excluded under the scheme
Loan Amount Loan Terms
- Loan of up to $500,000
Loan Terms How to apply
On top of the general bank lending terms a 90 day minimum term and a 3 year maximum.
How to apply
All major banks in New Zealand have the loan options available. However banks will require you to be an existing customer.
The Guarantee Scheme loans us currently available between 1st April 2020 - 30th September 2020.