The Government Business Finance Guarantee Scheme is designed to assist eligible New Zealand based businesses with an annual revenue up to $80 million deal with the disruption caused by COVID-19. Funds are limited and specific eligibility criteria and loan exclusions apply (see below).
Through the scheme, eligible businesses will be able to apply for liquidity or bridging finance while they deal with the disruption caused by COVID-19.
Each loan can be for up to $500,000.
The loan is for a maximum of 3 years and must be repaid over this time period.
Please note this is a loan and will add to the costs of running your business. As with any other loan, you remain responsible for repaying 100% of the loan and interest. You should not apply for an amount that you cannot afford to repay.
We will require usual security arrangements - please ask us for further details.
We are not permitted to make Business Finance Guarantee Scheme Loans available to:
a local authority, a council-controlled organisation or a council organisation for the purposes of the Local Government Act 2002; or
anyone who is classified by us in the follow categories: residential property investor or developer and commercial property investor or developer.
In addition, we are not permitted to make Business Finance Guarantee Scheme Loans available to anyone involved in:
The manufacture or distribution of recreational cannabis
The processing of whale meat
The manufacture of cluster munitions, anti-personnel mines, tobacco, and civilian automatic and semi-automatic firearms, magazines or parts
The manufacture or testing of nuclear explosive devices
Any activity which is illegal in New Zealand
In addition, loans can not be used for:
Financing capital assets or projects (other than business as usual expenditure which does not exceed 5% of the principal amount of the loan)
Distribution of dividends or on-lending outside the customer's guaranteeing group
Refinancing certain existing debt (except if the relevant loan already meets the scheme criteria, was advanced on or after 16 March 2020 and has a term of no more than 180 days)