Business Finance Guarantee Scheme
The Government has launched a Business Finance Guarantee Scheme for small and medium-sized businesses, to protect jobs and support the economy. The Crown, in partnership with participating approved banks, will support targeted new loans (including increases to existing limits) to eligible businesses, as a response to difficulties caused by COVID-19.
Under the scheme, businesses with annual revenue between $250,000 and $80 million can apply to their banks for loans up to $500,000, for up to three years. The scheme will offer a total of $6.25 billion in loans to New Zealand businesses.
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.
Business Finance Guarantee – applications open — Beehive.govt.nz
For more information on the Business Finance Guarantee Scheme – click here.
Mortgage Holiday Scheme
The package will include a six-month principal and interest payment holiday for mortgage holders and small to medium sized businesses whose incomes have been affected by the economic disruption from COVID-19.