New Zealand’s Business Finance Guarantee Scheme
As part of the government’s economic response to the Coronavirus, Finance Minister Grant Robertson has launched a scheme to support loans to small businesses via banks in NZ.
The $6.25 billion scheme is backed by the government, who cover 80% of the risk, with the remaining 20% covered by the bank. It is aimed at businesses with an annual revenue between $250,000 and $80 million. Loans are up $500,000 per operating business for up to three years, and must be repaid over this time period.
What we know so far
These are loans, not grants. Interest, standard fees and credit criteria will still apply. Criteria and interest rates will differ by each Bank.
Only NZ businesses are eligible and banks will assess applications from existing customers.
You may be required to draw down on existing facilities before you can draw under a BFGS loan.
Some industries and activities are excluded including property development and investment. See the full list.
Businesses will need to provide proof that they can repay the loan. This will involve up-to-date financials including trading figures up until lockdown and a business plan that shows the future sustainability of your business.
If you are looking for financial support for your business, the more information you can provide the better.
Talk to us about your business plan. We can assist you with the financials and guide you through available funding options.